The current labor markets are not easily understood. The economy has been slowing down, yet unemployment is low, job growth is good, participation is still below pre-pandemic highs and quit rates are still high.
Jobs are available, but there are segments of the market that are not going back to work or not happy with current jobs and quitting. McKinsey has referred to this as the Great Attrition. Despite the efforts of the Fed, labor has not significantly changed in response to rising interest rates.