US Labour Market

A big debate is going on about the tightness of labour markets in the US.
This chart from Pantheon Macro is instructive – 5 million people are missing from the labour force.
By Q3 factors holding individuals back will fade – enhanced unemployment benefit will expire (6th Sep) and all childcare/schools will likely be open.
Near term however we have lots of evidence of tightness (signing bonuses, rising wages) and the Fed is taking notice.