Many forecasters expected The pace of wage inflation affects all sectors of the economy, but wages are a particularly large share of costs in core services ex housing and, thus, particularly important for inflation in this category. 4 See Congressional Budget Office (2020).
To account for the effect of population controls on the level of the labor force, the shortfall is calculated by appending the Congressional Budget Office’s January 2020 projected labor force growth over the years 2020–22 onto the level of the labor force in 2019:Q4 that is adjusted for population controls. 3  -6that participation would move back up fairly quickly as the pandemic faded.