The unemployment rate now matches the pre-pandemic, half-century low of 3.5 percent. But with 2.8 million missing workers, low unemployment is both a blessing and a curse.
There are millions more job openings than there are people looking for work. Employers have responded by creating more flexible workplaces, adding new benefits and expanding opportunities for people to advance upward — including opening doors for workers without college degrees. And annual wages are up nearly 7 percent (not including inflation) since January 2021.
But even as workers have benefited from an opportunistic labor market, they haven’t been immune from its consequences: shortages of goods and services, crowded emergency rooms, reduced public safety, delayed deliveries and higher prices. The average worker’s $3,600 pay raise since January 2021 is equivalent to a $3,000 pay cut after factoring in inflation.
