The latest data on job openings and quit rates came out today and it appears to show that the labor market is finally cooling. Job openings are down to their lowest level since June 2021. Quit rates are also trending down. But inflation doves should not get too excited. Job openings are still much higher than they were before the pandemic. In fact, they are still much higher than they've been in the past 20 years prior to the pandemic. Quit rates are also above pre-pandemic levels, suggesting workers are still confident they can find work. The labor market is still tight; workers are still in demand. This means the economy will not return to normal any time soon.

Source: FRED

Allison Schrager is a senior fellow at the Manhattan Institute. Follow her on Twitter here.