Potential"pent-up labor demand after the torrid jobs market of 2021 and early 2022" as well as aging, immigration, and"labor-leisure preferences" impacting the available supply of workers are two potential reasons why the"labor market has evaded expectations of a collapse," he said.
Overall though, the different robust labor market data suggests the US could maybe avoid a recession as has been the case so far in 2023. Terrazas also thinks that post-pandemic changes in the economic landscape could lead to lower growth and higher inflation for longer.
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