Where’s My Raise? The Mystery of ‘Full Employment’

With every new round of job and wage figures, economists look for signs that the economy has reached full employment. That’s often described as the point where the only people who are unemployed are those temporarily in between jobs, and beyond which unemployment is so low that it sparks inflation. But unemployment has fallen further and faster in this expansion than many forecasters anticipated, without any sign of price pressures. That’s forced a major rethink in economics.