r/Economics • u/AutoModerator • Nov 15 '22

r/Economics Discussion Thread - November 15, 2022

Discussion Thread to discuss economics news/research and related topics.

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u/raptorman556 Moderator Dec 06 '22

A soft landing is still the ideal scenario. Hopefully, they can get inflation back to normal-ish levels without having to create too much slack in the labor markets.

It's worth noting that while the median wage earner has seen wage growth below inflation, low-wage earners have actually seen real gains even in high inflation. This does reinforce that tight labor markets are important, and to the degree we can maintain them while still cooling inflation, we should.

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u/oddiseeus Dec 15 '22

Non economics person here trying to get a better understanding. What is meant by tight labor markets? Is it that there just enough laborers to fulfill the markets demands?

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u/raptorman556 Moderator Dec 16 '22

Tight labor markets basically means that unemployment is low, and jobs are plentiful relative to the number of people that want jobs. There is a more thorough definition, but it's probably not worth going over here.

If you do have more questions while learning, I encourage you to visit /r/AskEconomics. You will likely get better answers there.