CNN —Back in 2022, when the labor market was so hot that Beyoncé even released a song about it, Americans were job hopping in large numbers, boosting their salary in the process.
But what appeared to be a hot job market was actually a symptom — not the cause — of the recent bout of inflation, according to new research that explored the consequences of unexpected rising prices on the labor market.
“Part of the ‘Great Reshuffling’ could have been because of the inflation,” Hurst said.
“We know that policymakers were reticent to act too soon, because they were concerned about potential inflationary pressures of the ‘hot’ labor market,” Hurst said.
That could all help play a key role in evaluating whether the labor market is driving inflation — or whether it’s the other way around.
Persons:
”, Erik Hurst, hasn’t, Hurst, Patrick T, Fallon, “, Renegotiations, ” Hurst, Jerome Powell, who’s
Organizations:
CNN, University of Chicago Booth School of Business, “, Bureau of Labor Statistics, Columbia University, Federal Reserve Bank of Atlanta, University of Texas, SoFi, Los Angeles International Airport, Getty, Federal Reserve, Fed
Locations:
Austin, Inglewood , California, AFP