SFCED | San Francisco Center for Economic Development

Labor Market Continues to Improve: SF Fed President Williams

The labor market has shown “continued, solid improvement,” said John C. Williams, president and CEO of the Federal Reserve Bank of San Francisco. “Not only has there been strong job growth, but the data show most of those new jobs are full-time and higher paying.”

Williams gave his forecast at a research conference hosted by the San Francisco Fed. He was upbeat about prospects for the U.S. labor market, predicting it would reach his 5.2 percent estimation of the natural rate of unemployment by the end of the year. He also noted the positive upward movement in wages. “Now that wage growth is starting to take off across multiple measures, it further confirms that the labor market is nearly healed,” he said. “In fact, what’s really been missing in this recovery is wage growth that’s around 3 or 3½ percent. That’s the rate I’d expect in a fully functioning economy with a 2 percent inflation rate.”

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