Labor markets may indeed be too tight in one sense. A full boat transfer payment package is worth about $69,000 in wages. Almost no one on a full boat package is worth that in labor markets. Hence, no one is looking to invest labor in a lower dollar yield than a no labor input receives. If we create an economic environment that demands labor, but below the transfer payment level, there will only be immigration to fulfill that demand. We need to return to the welfare reform benefit levels, work requirements and expected behaviors.
When these reports also include the fact that wages aren’t rising, then you know the unemployment figures are BS (in terms of “true” unemployment). When the labor market is tight employers have to fight for workers with higher pay, this hasn’t happened in this country in more than a decade (with the exception of a few fields).