A hot labor market is good, right? So why could it lead to a recession?

Professor Peter Orazem was interviewed by Marketplace for the story "A hot labor market is good, right? So why could it lead to a recession?" The story examines the current labor market and focuses on how the US could end up in a recession even with an abundance of available jobs.

Orazem told Marketplace that too many job vacancies mean lower production, and that if it continues, “We may literally have a recession, which would be a reduction in output that’s driven by insufficient workers, and still see no appreciable increase in the unemployment rate.”