Why U.S. Workers Aren't Seeing the Wage Gains They'd Like

The video discusses the importance of using the right metrics to analyze wage growth and labor slack. It emphasizes the employment cost index for accurate wage growth analysis and suggests using the employment to population ratio for a broader view of labor slack. The video critiques the Federal Reserve's reliance on U3 for assessing full employment, highlighting the need for a mix of metrics to understand labor market dynamics.

Which index is recommended for accurately assessing wage growth trends?

• Producer Price Index

• Consumer Price Index

• Employment Cost Index

• Gross Domestic Product

What is the advantage of using the employment to population ratio over the unemployment rate?

• It provides a narrower view of the labor market.

• It focuses solely on wage growth.

• It includes people not in the labor force.

• It only includes those actively seeking jobs.

What does the employment to population ratio indicate when plotted against wage growth?

• A consistent pattern since 1994

• A sudden increase in employment

• A significant decline in wages

• An unpredictable trend

Why is the U3 unemployment rate considered insufficient by some experts?

• It includes too many metrics.

• It excludes those not actively seeking work.

• It focuses on part-time workers.

• It overestimates the labor force.

What trend is observed as the labor market strengthens, according to the critique of U3?

• A rise in unemployment rates

• People outside U3 finding work

• An increase in part-time employment

• A decrease in job opportunities