Can anyone explain why the unemployment rate still remains fairly low?
For example this article from the Kansas City Fed talks about:
- Main cause is that Americans 65+ are slow to return to work.
- There's also some other considerations such as slower population growth and slow down of immigration.
My question is:
- What do you think are the major causes of the tight job market?
- Are these causes temporary (will fix themselves in 6-12 months) or reflect long term trends.
For example, if you think job market is tight due to too many people getting government checks or making a ton of money in Bitcoin/stocks, then surely that's going to change in the next 3-6 months.
I think this question is important because the tight job market and high consumer spending seems to be the key pillars holding back a deep recession (for now). It would be good to know if the good employment numbers will remain steady in the long term or is it about to crash (if you think it will crash, why)?
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