According to Narayana Kocherlakota, the president of the Minneapolis Fed, the labor market still has room to improve before reaching the FOMC's goal of full employment. Per MarketWatch:
Kocherlakota said the jobless rate could continue to tumble and hit 5.7% by the end of the year from 6.2% in July.
But Kocherlakota said there are "many ways to see this continued weakness" in labor markets, saying that too many people aged 25 to 54 are not working. In addition, a historically high percentage of workers can only find part-time work even though they want full-time jobs, he said.