Labor Market Is Both Loose and Tight, Bill Dudley Says

The transcript discusses the power dynamics between corporations and labor, highlighting the decline in labor's share of income due to corporate consolidation and weakened union influence. It explores the impact of technology on the labor market, noting changes in job search methods and employment dynamics. The discussion also covers current labor market conditions, including unemployment rates and job openings, and examines the role of the Federal Reserve in achieving full employment and managing inflation. The challenges of worker mobility and the potential for government policy to influence labor power are also addressed.

What are some reasons for the decline in labor share over the past decades?

• Stronger labor unions

• Increased corporate power and less aggressive antitrust policies

• Higher unionization rates

• Decreased corporate consolidation

How has digitalization affected the labor market?

• It has made job searches more challenging

• It has increased the return on labor

• It has decreased the return on capital

• It has had no impact on job search dynamics

What is a current characteristic of the labor market?

• A record number of job openings

• A surplus of workers

• Low unemployment rates

• Decreasing job opportunities

What is a challenge in restoring worker mobility and power?

• Increased willingness to relocate

• High levels of worker relocation

• Aging population and decreased mobility

• Government policies supporting mobility

What conditions must be met for the Federal Reserve to raise interest rates?

• Low employment and 2% inflation

• High unemployment and 3% inflation

• Full employment and 2% inflation

• Full employment and 1% inflation