Danny Blanchflower Sees Wages Indicating Labor Slack

The video discusses the current state of the US labor market, focusing on nonfarm payroll, unemployment, and underemployment rates. It highlights the debate on whether the labor market issues are cyclical or structural, with a strong argument for the former. The discussion also covers wage growth trends, indicating significant slack in the labor market and suggesting that full employment is still far off. The analysis concludes that the unemployment rate is not a reliable indicator of labor market slack, emphasizing the importance of looking at broader measures like U6.

What is the main focus of the first section regarding the labor market?

• The increase in nonfarm payroll

• The rise in household income

• The decline in consumer spending

• The uptick in the unemployment rate

What is the speaker's stance on the nature of the labor market issues?

• They are primarily structural

• They are a mix of cyclical and structural

• They are neither cyclical nor structural

• They are primarily cyclical

Which country's labor market is compared to the US in the second section?

• Canada

• United Kingdom

• Germany

• Australia

What does the speaker suggest about the current state of full employment?

• It is well below 4%

• It is above 5%

• It has already been achieved

• It is exactly at 4.8%

What is the implication of the current labor market slack on wage growth?

• Wage growth is rapidly increasing

• Wage growth is stagnant or falling

• Wage growth is unpredictable

• Wage growth is irrelevant