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5% unemployment, lots of job openings, employers desperate to hire, more inclined/forced to pay higher wages

3% unemployment, more people taking up the fixed amount of job openings, less job openings, employers less desperate to hire

Am I missing something?

>Am I missing something?

I think so. Your causality is wrong.

Strong economy -> More demand for employees -> Low unemployment Weak economy -> Less demand for employees -> Higher unemployment

Thanks for taking the time to explain. I checked with ChatGPT and it said I am wrong as well.

Maybe I am thinking in the wrong terms?

What would you define what we had in COVID?

High demand for employees... was that because of low or high unemployment in your mind?