Don’t confuse less bad for better

Most of the labor market gains have really just been about repairing the damage from the 2020 lockdowns that destroyed more than 22 million jobs. 

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Don’t confuse less bad for better
Welcome to the Know the Difference Minute for Tuesday, July 11th.
The National Federation of Independent Business, a small business advocacy organization, released its Optimism Index for June. Since 2022 when it hit levels consistent with the seven recessions since 1974 when the index was first published, it’s been more like a pessimism index.
What’s got business owners so glum?
It’s not interest rates. It’s not even inflation anymore. It’s finding qualified workers.
Most of the labor market gains have really just been about repairing the damage from the 2020 lockdowns that destroyed more than 22 million jobs. Since before the lockdowns, the population has grown 2.5%. In many industries, job gains haven’t kept up with population growth. In some, there are fewer workers today than there were in 2019. Is the labor market overheating, or is it still just trying to get back up to room temperature?
I’m Brian Jacobsen, Chief Economist at Annex Wealth Management. That is your Know the Difference Minute.