In this economic analysis, we determine the degree to which firms that are looking to hire a significant number of workers can expand employment (a “hot” labor market) or cannot (a “tight” labor market). This analysis suggests that a high job opening-to-unemployment rate ratio overstates how hard it is for firms to hire and that the job openings-to-hires and job opening-to-net hires ratios are worthwhile additions to the list of indicators that assess the state of the labor market.
Nine economic facts about the service sector illustrate recent trends in spending, employment, and inflation as the country continues to rebalance.
A modern approach to industrial policy must target "good-jobs externalities" and include the service sector, Dani Rodrik argues. He proposes two specific initiatives: one at the local level and the other at the federal level.
Defying expectations, the business sector appears to have weathered the COVID pandemic and found a renewed gear of dynamism in the process. This analysis looks at the outcomes of initial business closings, employment impacts, new business formations, and restructuring of business activities.
In a new framing paper, Mitchell Barnes, Lauren Bauer, Wendy Edelberg, Sara Estep, Robert Greenstein, and Moriah Macklin examine the U.S. social insurance system. They consider the social insurance system as a whole as well as its component parts, providing an overview of major federal programs in the areas of education and workforce development, health, income support, nutrition, and housing opportunity.
In a new policy proposal, Tanya Byker and Elena Patel propose the creation of a federal Paid Parental and Medical Leave (PPML) program. The proposal would establish a partial wage replacement system, extended to all eligible wage employees, to supplement income during work disruptions due to the arrival of a child or due to a personal or a family member’s illness.