Opinion: Only now has job creation begun slowing down—implying that labor-market slack is almost eliminated and the economy is getting close to the end of a long recovery
When unemployment dropped below 5% three years ago, some economists, including at the Federal Reserve, concluded that the labor market had topped out—that those still out of work would never get jobs. Three years and nearly eight million additional jobs later, it’s clear they were wrong.
Only now has job creation begun slowing down—implying that labor-market slack is almost eliminated and the economy is getting close to the end of a long recovery. That doesn’t imply that recession is imminent. It is possible to continue at...
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