A bigger pool of American workers could continue to slow inflation even further

US inflation is down considerably from a four-decade high reached nearly two years ago. The Federal Reserve faces the final stretch of its historic inflation battle, and a bigger pool of workers could slow inflation even further. This could improve the chances of a ‘soft landing,’ where inflation is tamed without triggering a recession. Last year, America’s job market was solid, with employers hiring at a strong clip and unemployment remaining low. Labor force participation dropped sharply during the pandemic but began to recover and jumped last year. Economists believe there is still room for improvement in labor supply to slow inflation further, although it’s unclear if it will be enough to reach the Fed’s 2% target. Last year, workers took time to return to the job market, and economists theorized various reasons for their delayed return. Strong demand in 2023 allowed employers to continue hiring. Immigration into the United States increased, but labor force participation still remains below pre-pandemic levels. Improving labor supply might incrementally slow inflation, but weaker demand could also play a role in reining in inflation. A London-based technology company has developed a mobile app called aiScout, which allows aspiring soccer stars to enter virtual trials for professional clubs by uploading self-recorded footage of themselves completing drills. The app offers 75 exercises to test a range of skills, and performances are automatically scored by AI technology. The app currently has partnerships with two English Premier League clubs and allows clubs to customize the trials and set their own benchmarks. This app aims to make talent identification and scouting in soccer more accessible.