A useful way to think about this: a tight labor market is not just about unemployment; it is about bargaining power and replacement difficulty. What is happening: Labor data matters because it changes how firms think about hiring, wages and pricing, which then loops back into margins and inflation. That is why the same unemployment rate can feel very different depending on vacancy pressure and labor churn. In practice: If firms cannot replace workers easily, wage sensitivity changes even before headline payrolls fully reflect it. Watch for: The mistake is using one labor headline as a total summary of labor market pressure. Useful lens: On the next portfolio review, separate what feels urgent from what is structurally important. A lot of confusion disappears once you separate the headline from the mechanism.