Recent data suggests that the labor-force participation rate has started to improve, probably thanks to a strong economy and significant increases in the de facto minimum wage, to approximately $15 per hour.
The future trajectory of worker participation could have big implications on a variety of issues that are important to investors, including economic growth rates, inflation and interest rates. With more people in the workforce, the economy may be able to continue to grow, without pushing up inflation in a way that might lead to the Fed raising interest rates.
All comments and suggestions are welcome.
Walter J. Kirchberger, CFA