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Why is the U.S. unemployment rate low amid trade uncertainty?

Why is the U.S. unemployment rate low amid trade uncertainty?

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 The U.S. unemployment rate has remained near historic lows amid massive uncertainty from trade wars. A long-term structural trend—surging retirements—is keeping the unemployment rate from rising drastically even during short-term cyclical deterioration in the labour market. In this episode of the 10-Minute Take, RBC Economics’ Carrie Freestone and Claire Fan discuss: • The mechanisms of how record retirements keep the unemployment rate low over the medium-term. • Why the U.S. arguably needs more new workers than it needs new jobs. • How these structural forces will play out with near-term cyclical forces (like a labour market deterioration). • How immigration policy in Canada has blunted—but not fully eliminated—the cost of population aging.
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