Danny Blanchflower Sees Wages Indicating Labor Slack

The video discusses the current state of the US labor market, focusing on nonfarm payroll, unemployment, and underemployment rates. It highlights the debate on whether the labor market issues are cyclical or structural, with a strong argument for the former. The discussion also covers wage growth trends, indicating significant slack in the labor market and suggesting that full employment is still far off. The analysis concludes that the unemployment rate is not a reliable indicator of labor market slack, emphasizing the importance of looking at broader measures like U6.

What are the speaker's thoughts on the cyclical versus structural nature of the current labor market?

According to the speaker, what indicators should be considered to assess full employment?