I look at the following graph...
The graph implies that as labor share falls, labor is less inclined to supply their labor... and the natural rate of unemployment rises.
Since 1947, the unemployment rate falls to a level consistent with implied supply & demand limits set by labor share of national income. The US is now hitting the implied supply limit.
- Will the unemployment rate only fall as long as labor share keeps trending up?
- Will the plot line end up respecting the implied supply limit of labor?