We look at different indicators of labor market tightness in the US, both from a demand and a supply perspective. While a lot of progress has been made, imbalances persist to some extent. The matching process, as measured by the Beveridge curve, is normalizing thanks to a reduction in the vacancy rate – while the unemployment rate remains low partly as a result of a low participation rate. Considering that the disinflation process is underway but not completed, the Fed is likely to proceed cautiously and wait for a further decline in labor market tightness before cutting rates.