So far in the 1990s, the jobless rate has come down, wages have risen faster than prices, and inflation has trended lower. Economic historians tell us that long-run episodes of fast growth and higher living standards in the U.S. and in other countries have also been periods of relatively low inflation. What's more, in today's world, low unemployment may be a force for keeping inflation down. Largely thanks to the digital revolution, the new economy is often called the information economy or the knowledge economy. Corporate America's has been on a capital spending boom, giving workers more efficient, powerful tools at work.
Low unemployment boosts the real economic wealth of a nation - skills and knowledge.