U.S., U.K. 'Very Far Away' From Full Employment, Says Blanchflower

The transcript discusses the paper by David Bell and David Blanchflower on full employment, highlighting Jay Powell's skepticism about the US and UK labor markets being fully employed. It examines the lack of wage growth, attributing it to underemployment and non-employment. The impact of globalization and the Great Recession on the labor market is explored, noting that workers are hesitant to push for wage increases due to job insecurity. The discussion concludes with an analysis of labor demand and the changing global economic landscape, emphasizing that the US is far from full employment.

What is a key indicator that a country is close to full employment?

• Stable inflation rates

• Decreasing job opportunities

• Rising wages

• High unemployment rates

What are the main factors driving wages according to the transcript?

• Underemployment and non-employment

• Technological advancements

• High employment and inflation

• Government policies

How has the Great Recession affected workers' attitudes towards wage growth?

• It had no significant impact

• It made them fearful of job loss and less likely to push for wage increases

• It made them more willing to change jobs

• It encouraged them to demand higher wages

What is the effect of globalization on the labor market as discussed in the transcript?

• It has decreased job opportunities

• It has increased job security

• It has made traditional economic models less applicable

• It has stabilized wage growth

What error are central banks making according to the transcript?

• Overestimating inflation rates

• Underestimating the impact of globalization

• Misunderstanding the labor market

• Ignoring technological advancements