U.S. labor market rebalances from pandemic-era extremes

High-profile economists were engaged in a nerdy yet hugely consequential debate last summer: Might inflation come down without a massive spike in joblessness — perhaps simply through employers cutting back on job openings?

Why it matters: The U.S. labor market is rebalancing from pandemic-era extremes with minimal pain for workers, while inflation edges closer to the Fed's 2% target.

Employer demand for new workers is easing, even as firms still, for the most part, retain existing staff.

What's new: We have a winner in the debate, further confirmed by new...