Federal Reserve Bank finds cooling labor demand in Midwest

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U.S. labor demand—measured by job openings or vacancies—has started to cool but is still elevated compared with pre-pandemic levels.

It’s the assessment of a new study released by the Kansas City Federal Reserve Bank, a district that includes Oklahoma.

The study indicated the weakness in the labor supply area might persist as it reflects lower participation among older individuals. It also means the imbalance between demand and supply in the labor market might continue until labor demands cools further.

In Oklahoma and other oil and gas states, there is a nagging challenge of finding oil patch workers.

Labor supply, according to the study, is below pre-pandemic levels As of September of this year, the labor force participation rate was 1.1% below its February 2020 level. Who in the work force is most affected? The study found those in the prime age of 25-54 and those 55 and older are most impacted by the challenges of the near recession.

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