This is actually bad news because a super-hot labour market tends to lead to higher inflation; forcing the Fed to artificially slow down the economy even more and increasing the chances that they land with a recession.
"More than 1 in 5 adult Covid survivors in the U.S. may develop long Covid, a C.D.C. study suggests."
<a href="https://www.nytimes.com/2022/05/24/health/long-covid-infections.html" rel="nofollow">https://www.nytimes.com/2022/05/24/health/long-covid-infecti...</a><p>"Long Covid risk falls only slightly after vaccination, study shows"
<a href="https://news.ycombinator.com/item?id=31531259" rel="nofollow">https://news.ycombinator.com/item?id=31531259</a><p>It seems possible that no matter how much interest rates are raised, that this time the workers are not going to come back and companies will need to keep hiring and competing for workers. Current layoffs seem to be being absorbed with little effect on reducing wages or hiring. Many people are assuming things still work the way they used to, and they may not. Raise rates = reduce employment = lower wages always assumed "all other things being equal" and all other things are not necessarily equal any more. Time will tell. If the Fed keeps pushing rates higher and there remains a lack of workers then a lot of market destruction could occur and inflation may not come down. There are many current causes of inflation world wide and US interest rates will not have an effect on a lot of them.