Labor Market at Full Employment? Not So Fast, Say Experts

This week's labor market data release includes several key indicators, including the Job Openings and Labor Turnover Survey and the ADP private sector report. The September unemployment rate will be announced on Friday, with last month's rate at 4.1%.

According to Federal Reserve Chair Kevin Warsh, this level of unemployment is essentially consistent with full employment. However, experts are not so sure.

Alicia Sasser Modestino, a professor at Northeastern University's School of Public Policy and Urban Affairs, compares the labor market to filling a bathtub with water. 'You want enough water that you can enjoy the bath, but not so much that it overflows,' she explained.

Modestino notes that even at full employment, there will still be some people without jobs. Zero unemployment is actually associated with high inflation and wages growth, which experts agree is not desirable.