The newest COVID-19 wave is reducing labor supply, leading the Federal Reserve to conclude that employment is approaching its practical limits.

Reports indicate a slowdown in hiring at front-line enterprises and a record number of Americans quitting their jobs. Employment dipped in December, according to statistics compiled by company payroll managers Homebase and UKG, coinciding with a record incidence of coronavirus illnesses caused by the Omicron type.

Photo: January 2022: Record U.S. quits, hiring slowdown may show Omicron's impact on labor supply