With initial jobless claims still running at close to one million per week, it could be argued that, at 8.4% in August, the unemployment rate is not capturing the full extent of the slack in the labour market. But the survey evidence and the job turnover data paint a very different picture – suggesting that there is less slack now than there was coming out of the financial crisis a decade ago, which is a reason to suspect that wage growth and price inflation may prove to be more resilient this time too.

Read the publication How much slack is in the labour market? on the Capital Economics Website.

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