Maintenance of the labor market's gradual improvement is in doubt in a Wall Street Journal survey showing economists believe that the unemployment rate will only fall to 4.5% by 2018 from the current 5%, which policy pundits normally consider near full employment. ButWall Street Journal staffer Josh Zumbrun takes a look at this number, factoring in underemployment.
Forecasts show that the labor market is in a period of slow growth with economists doubting how much further both unemployment and underemployment can drop. There are few solutions for further improving the labor market:
Low interest rates from the Federal Reserve may have done nearly all they can to boost the labor market, in the view of many economists. In any case, the Fed is debating when to raise interest rates further, not planning to cut them.