It was an already-tight U.S. labor market in 2019 and 2020, before the world shut down to contain the spread of a deadly coronavirus. Consequences of countermeasures, including mass early retirements and a near-complete immigration cutoff, have further constrained supply and left labor in its strongest position vis a vis capital in decades. Indeed, the nonfarm payrolls report for September showed broad-based gains “despite rising inflation, despite rising interest rates, despite the very strong dollar,” notes Julia Pollak, the chief economist at ZipRecruiter.com. ZipRecruiter data show signs of a potential “immaculate slowdown.” But will things cool enough without the Federal Reserve having to tighten too much? Julia joins Maggie Lake to talk about the U.S. labor market, how it’s changed in the aftermath of the pandemic, and what labor and capital can look forward to as their ever-defining relationship evolves. Recorded on October 7th, 2022.