A chart for your thoughts…The pace of job creation is improving despite a record low unemployment
Before last week’s January employment report, we highlighted the fact that record low unemployment does not preclude further robust job gains. This is because both the employment to population ratio and the labor force participation rate still remain well below previous cyclical highs. Hence, there is plenty of labor supply available for firms to pull workers off the sidelines and into the job market. Despite record low unemployment, underlying payroll gains have accelerated.