Inflation

The labor participation rate is down from pre pandemic numbers. There are 11 million unfilled jobs. This is the result of early retirement and people who have enough money to not work. Much of this money comes from government checks that were handed out during the pandemic. People not working reduces supply and giving out checks increases demand. The government is now planning to cancel student debt which will give these people more disposable income which will add to demand without increasing supply. Many students who work to pay their loans can now work less which lowers supply.