“At the same time, as economic expansions progress, we expect GDP and job growth to slow to a steadier and more stable pace than the breakneck growth pace coming out of the trough of the pandemic-induced recession,” CEA said. “Economists have referred to this as normalization or sometimes, as economic cooling.”

“We learned at least two things this morning about the U.S. labor market. First, most importantly, we learned that employers continue to hire at a strong pace, helping to generate record spells of both low unemployment and high women’s LFPRs. Second, we learned that as the pandemic continues to fade into the rear-view mirror, some key economic misalignments are realigning in a manner consistent with steady, stable, sustainable growth,” the Council of Economic Advisors said.