Coulton: Tight U.S .Labor Market Pushing Wages

The video discusses the current state of the US labor market, highlighting its tightness and the rise in nominal wage growth. It examines the dynamics of unemployment, including job turnover and the quit rate, which indicate increased job market confidence. The discussion extends to the global economic impact, particularly how changes in the US economy affect other G7 countries and the distribution of income between wages and corporate profits.

What has contributed to the recent increase in nominal wage growth in the US?

• Underlying tightness of the labor market

• Strengthening of the dollar

• Increase in corporate profits

• Collapse in oil prices

Why can't unemployment be reduced to zero in a fully employed society?

• Government regulations

• Job turnover and hiring challenges

• High inflation rates

• Lack of skilled workers

What is one indicator of increased confidence in the US labor market?

• Reduction in wage offers

• Increase in the quit rate

• Decrease in job openings

• Higher unemployment rates

How might a stronger US job market affect other G7 economies?

• Boost in wage growth and demand

• Decrease in global demand

• Reduction in corporate savings

• Increase in US imports

What is a potential benefit of increased labor share in the economy?

• Higher corporate profits

• Improved demand and growth

• Decreased household income

• Lower inflation rates