The Importance of Resilience in a Post-Pandemic Environment

There have clearly been fundamental shifts in the way that workers interact with the employment market and how the population views work post-pandemic. The people who left the labor force took early retirement are not coming back. People who have opted out of the labor force for other reasons are less likely to return than we might have seen in prior cycles. All of this implies that nominal wage growth is going to remain elevated, which is why the Fed's hawkishness is justified.