Federal Reserve minutes said participants judged labor-market conditions broadly
stable and labor supply and demand roughly balanced, with unemployment steady
over the past year and near most participants' estimates of its longer-run
level. Some participants said uncertainty around AI development and current and
expected productivity gains have kept both hiring and layoffs low; in industries
building AI, demand for tech workers is strong and has driven sharp wage gains
for those roles. Other participants flagged lingering slack, citing low
employment rates and elevated long-term unemployment. Several described nominal
wage growth as moderate and consistent with inflation moving toward 2%, though
some warned of upside risk to future wage growth.
