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Fed’s Barkin Says US Job Supply Problems May Outlast Pandemic

The labor shortage in the United States may outlast the coronavirus pandemic and limit overall economic growth, unless the country introduces better policies for education, health and childcare, declared the chairman of the Federal Reserve of the United States. Richmond, Thomas Barkin.

As our workforce ages and birth rates decline, we may find that the availability of the workforce limits our economic growth.“Barkin said in remarks prepared for a South Carolina Chamber of Commerce event.

He noted that while the labor shortage has appeared acutely during the reopening of the economy, it still represents a longer-term challenge for the country.

In general, it is a mathematical problem. Over time, we cannot grow without more workers. The best source of more workers are those on the sidelines. And those on the sidelines won’t go back into the job market unless math makes more sense to them.”He declared.

This would be possible, he noted, through childcare programs that help parents, better pay and transportation options, or even incentives for older people to keep working.

He said that paternity leave policies in Canada appear to help boost participation in the workforce, while Japan has used a combination of mandatory later retirement ages and subsidies for older workers to boost the number of people. 60-64 years in the workforce.

The prospect of the limitations of labor participation in the United States is a key question for the Federal Reserve, as it contemplates a shift towards a post-pandemic monetary policy.

During the crisis, more employees retired than expected, while others, especially women and those in lower-paying jobs, stopped working because of their family care responsibilities or concerns about health risks.

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