Price stability does not arrive like manna from heaven, and we must remember that several obstacles still obstruct the path to achieving it, and these have to be removed. Some derive from the arrangements which were intended to make living with inflation more comfortable – these now make it more difficult to beat inflation.
Indeed, it has been a regular feature of the early stages of recent recoveries. Research demonstrates that the labor force participation rate cycle lags that of the unemployment rate by years. So, it is important to consider indicators beyond the headline unemployment rate when assessing progress toward maximum employment, as participation gains might come late in the recovery for some groups.