Stagflation Is Here. Is Recession Next? Real Wages Hold the Key.

Since Russia’s invasion of Ukraine, stagflation concerns have taken hold. February’s jobs report may appear to throw cold water on worries over simultaneously rising prices and slowing growth, but any relief over the state of the economy should be fleeting.

Wall Street’s take on the latest employment report was largely positive, and for some good reasons. U.S. employers added 678,000 jobs last month, considerably more than economists expected and reflecting the best hiring since July. The labor-force participation rate ticked…