of comparison, this ratio was 1. 2 prior to the pandemic. 5 the sharp fall in vacancies at a time when initial claims held steady at low levels provides support for the possibility that businesses that faced significant challenges finding and retaining qualified workers following the pandemic may be more inclined than in past cycles to retain rather than lay off their workers as demand weakens. in particular, there is still a sizable 1. 2 million shortfall in employment levels relative to prepandemic levels in the in - person services sectors that accounted for the majority of september payroll gains, suggesting businesses in those sectors may still be trying to narrow that gap. 6 that said, a variety of indicators suggest labor demand remains strong, while labor supply remains below pre - pandemic conditions. the unemployment rate is now at the very low level that prevailed pre - pandemic, and the volume of quits remains for example, the discussion in the september beige book notes that “ overall labor market conditions remained tight, although nearly all districts highlighted some improvement in labor availability, particularly among manufacturing, construction, and financial services contacts. moreover, employers noted improved worker retention, on balance. ” see board of governors of the federal reserve system ( 2022 ), beige book ( washington : board of governors, september 7 ), https : / / www. federalreserve. gov / monetarypolicy / beigebook202209. htm. the current ratio is calculated as the number of job openings at the end of august in the most recent jolts release, divided by the number of unemployed persons reported in the september 2022 current population survey. the total shortfall in the level of employment in september 2022 relative to the level in february 2020 from the retail trade, educational services, local government education, health care and social assistance, and leisure and hospitality sectors was 1. 16 million. - 4elevated. 7 this supply – demand imbalance in the labor market is reflected in strong wage growth. the employment cost index increased by an annual rate of 6. 3 percent over the second quarter — its highest level in decades. a more - timely data source, average hourly earnings, decelerated slightly to a 4. 4 percent annual rate over the third quarter, down from 4. 6 percent annual growth in the second quarter. although it is well above levels consistent with 2 percent inflation, wage growth has been running below current inflation. strong wage growth along with high rental

and families, especially the most vulnerable. i am committed to pursuing the federal reserve ’ s congressionally mandated goals of price stability and maximum employment and to maintaining the strength and resilience of our financial system. i am committed to the independent and nonpartisan status of the federal reserve. if confirmed, i look forward to supporting chair powell in carrying out the responsibilities assigned to the federal reserve and in fostering transparent communication and accountability to you and the american people. i will bring a considered and independent voice to our deliberations, drawing on insights from working people, businesses, financial institutions, and communities — large and small — across the country. i will support policies that are in the interests of the american people and based on the law and careful analysis of the evidence. before closing, i want to thank my husband and daughters for their steadfast support of my work. and i would like to commend the outstanding efforts of the individuals across the federal reserve system who work so hard every day to serve the american public. 1 / 2 bis central bankers'speeches senators, i thank you for this opportunity to appear before you and for considering my nomination. i would be pleased to respond to any questions. 2 / 2 bis central bankers'speeches