The U.S. economy is back at full employment after more than a decade, according to a leading economist, The Hill reported yesterday. Mark Zandi, chief economist at Moody’s Analytics, said the 4.4 percent unemployment rate is good news for workers’ wages while acknowledging that labor shortages will make it more difficult for businesses to find qualified employees. “With the economy at full employment and seeming destined to blow past it, the current expansion is likely entering its later stages,” Zandi said. “An overheating economy, where tight labor markets result in significant wage and price pressures, has been a necessary condition for all past recessions.” Amid the growing economy, lingering frustration around the long economic recovery from the recession in 2007 and the financial crisis the following year is what led to the election of President Donald Trump, Zandi said. "Since most people set their expectations based on their recent experiences, many believe their financial future is a dark one," he said. Another indicator, the underemployment rate, which has fallen to 8.6 percent, is also below the threshold consistent with full employment. “A full-employment economy feels great after years of high unemployment, but for businesses it means an increasingly difficult time finding qualified workers,” Zandi said.
