The Indicator from Planet Money · Thursday, July 2, 2026
The concept of maximum employment, defined as everyone who wants a job having one, is difficult for the Federal Reserve to measure and achieve. Structural inequities in the labor market, such as historical discrimination and varying unemployment rates by demographics and state, further constrain the Fed's ability to unilaterally promote this goal.
“Maximum employment, broadly speaking, is the idea that everyone who wants a job has a job.”
“It does not have a number attached to it.”
“The labor market has had big structural inequities, discrimination, differences across workers whether it's race, ethnicity, education.”
“The Fed can't use interest rates to boost a specific group of workers.”