Misleading unemployment numbers may be prompting the Fed and the Bank of England to make a huge error
|09/22/2018||Posted by BusinessMediaguide.Com under General World News||
- There is almost zero wage growth in the US and the UK, even though there is full employment.
- That is unexpected, because a tight labour market usually drives up wages. So what is going on?
- New data in a research paper for the National Bureau of Economic Research suggests the wage-dampening effect of mass unemployment has been overtaken by the underemployment of the gig economy.
- The paper’s author told Business Insider that the US Fed and the Bank of England don’t understand this, and are raising interest rates on false assumptions about what is really going on in the labour market.
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