The second and third quarters of 2021 witnessed a recovery of the U.S. labor market, but this paper questions the long-term sustainability of this recovery. Labor market problems persist in the form of hidden unemployment, discouraged workers, and market disequilibrium. Unemployment remains high, yet some companies are having problems finding workers. The paper identifies three keys to correct market disequilibrium and to promote worker knowledge and mobility. First, the problems of hidden unemployment and discouraged workers must be addressed through enlightened public policy. Secondly, labor market growth must be supported by balanced fiscal and monetary policies and, third, there is a need for the U.S. to recapture the historical labor market benefits of globalization.
Globalization, Labor Market Disequilibrium, Labor Market Imperfection, Hidden Unemployment, Federal Reserve System