that is that the prerecession low.u will find and what people should expect as we get or near or overshoot full employment, job growth will slow somewhat and the degree of production in unemployment rate may also slow some. i think that may explain why you see a little slower rate of reduction in unemployment rates. michael: the question is, growth goes up and nothing happens with inflation, why not? >> you have tw tempt -- you have two competing forces. one is the cyclical pressures. i'm confident there are more shortages for skilled workers and at the low end of wages, there is wage pressure. if you make $20 or more, i am not sure based on my discussions with businesses there is wage pressure. but cyclical forces are building. as we take more slack of the labor market, that will build more. then you have a headwind, technology and it means people being replaced by technology and it means consumers being able to shop more aggressively for the lowest price. pricing the power of business is limited. it means new busines

so they're back to the highs that they were prerecession. and construction jobs do, in fact, make up one of the largest proportions of pdr jobs in the city. average wage citywide is $101,640, and has grown consistently 7 the last decade. average wage is probably not the most outful metric. one of the reasons it's not the best is it concealed the discrepancy between a retail wage, which is under $40,000, and average office wage, which is now over $150,000. the inventory tracks building activity, measured by the number and construction value reported by our building permits. we saw a slight decline, down to 28,750. however the total construction value of the permits grew by 11% to $6.5 billion. bringing you now into 2016, right as we're ready to head to 2018, the latest estimates on unemployment in san francisco show an incredibly low 2.7% unemployment. believe it or not, there are two counties that have even lower unemployment, and those are our neighbors, san matao and marin. the report and data is available on our website and at dsf.org. wi

so they're back to the highs that they were prerecession. and construction jobs do, in fact, make up one of the largest proportions of pdr jobs in the city. average wage citywide is $101,640, and has grown consistently 7 the last decade. average wage is probably not the most outful metric. one of the reasons it's not the best is it concealed the discrepancy between a retail wage, which is under $40,000, and average office wage, which is now over $150,000. the inventory tracks building activity, measured by the number and construction value reported by our building

they're not quite back to the levels we saw prerecession. but what you do have in the united states is for prime aged workers, especially men, chronic long lasting multidecades decline in labor force participation. and my own assessment would be so that's not about retirement. that's about working age individuals who are not participating in the labor force. i think that reflects longer term trends that are adverse that are affecting particularly low skilled americans in the workforce, the disappearance of middle income jobs, pressures on wages at the lower end, the opioid crisis which partly reflects that labor market decision stress, but also contributes to individuals staying out of the labor market and being not able or willing to work. so i think we do have adverse trends affecting labor force participation. i mean, you asked me how does it impact my view of employment. well, when i see for the last three years u.s. labor force participation rate has been essentially stable, i see that as a good trend showing improvement in the labor ma

recession, retailers thought that the spending was going to rebound at the rate we were spending prerecessionnded the store square footage very quickly. we saw that in the malls. we are seeing a little bit of consolidation. now we go to the mall maybe to go to the gym or to the doctor or entertainment. david: a lot of wasted spas in those malls these days. good to see you both, ladies. happy new year. >>> south korea saying north korea could be ready for talks. is this proof tougher sanctions may be working after all. david: south korea is now predicting north korea will be open to talks to the united states next year. is this a sign tougher sanctions are working? former national security advisor to vice president dick cheney johnç hannah. john, talk, discussions, dialogue, however you want to put it never got us very far changing the way north koreans do things, have they? >> no. it's a pretty sad history, david. on one hand i give the trump administration a huge amount of credit, especially for those three very tough-minded, unanimous u.n. security council sanctions resolutions. on the oth

has surpassedit prerecession highs. it is due to a lack of demand. the question follows on senator warren. withproblem are we solving deregulation? >> i'm not going to characterize what we are doing as deregulation. i would think of it as looking back over eight years of innovative regulation, look with the requirements -- liquidity requirements. looking back, making sure what we did it makes sense. >> is in the objective to get these metrics up? aren't they already up? to errort make sense on the side of caution? regulation ought to be limited. - aren't we where we want to be in terms of bank profitability? not thenk profitability problem? income,nt there was net was justeir income sugar did in the form of dividends and stock? what are we fixing and for whom? system isking healthy. it is great to see. that was not the case a few years ago. banksnice to see profitably serving their customers can read we are not looking to change that read i would add, we do want to air on err on the the -- side of caution. it does not help anyone for banks to waste m

home loans, credit cards, has surpassed prerecession highs. hanna according to the feds sluggish home growth is due to lack of demand. so the question follows on senator warren's question, which is what problem are we solving with deregulation? >> i'm not going to characterize what we are doing as deregulation. i would rather think of it looking back over 8 years as very innovative, things like liquidity requirements and stress testing. those are all new. and looking back, making sure what we did makes sense. >> isn't the objective to get all these metrics up and aren't these metrics already up? so doesn't it make sense to err on the side of caution? i understand in principle, some people in principle believe that too much regulation is a problem and it ought to be eliminated almost as ideological pre-september. but if you are looking at a practical matter, aren't these the data points you want? aren't we where we want to be in terms of bank profitability? in fact, isn't bank profitability not the problem, but to the extent that there was net