Posts tagged Federal Reserve
It’s a Gloomy Outlook for Jobs Under Biden. Here’s the Formula to Change That.
May 19, 2023 // For the sake of personal and societal happiness, for the sake of the financial well-being of American families, for the sake of solving America’s dire fiscal situation, and for the sake of preserving the foundation of American society, policymakers need to recognize the value and rewards of work. By protecting individuals’ rights to pursue the type of work and compensation that is best for them, expanding alternative education and job-training opportunities, and not forcing workers into unions, policymakers can expand opportunities for people to achieve meaningful and rewarding work. Work truly affects every aspect of American life. Our economy, our personal financial and physical well-being, our nation’s fiscal sustainability, and even our national security depend on it.
Millions of men are leaving the workforce. Here’s the lasting impact that has on the economy.
February 24, 2023 // But a less publicized factor is that men ages 25 to 54, have been dropping out of the workforce for decades. Their participation rate rebounded somewhat from 2017 to 2019 as unemployment fell and wages increased in a vibrant labor market. But it slid during the health crisis and has yet to fully recover despite record job growth over the past two years. A 2021 study by the Federal Reserve Bank of Richmond also cites a rise in male substance abuse and even heavy video game use. Another study several months ago by the Federal Reserve Bank of Boston cites a less obvious reason: Non-college-educated men have left the labor force in greater numbers as the shortfall in their wages compared to college-educated men has increased, the study says.
How inflation is fueling a nationwide labor movement
September 16, 2022 // “Widespread underlying inflation is still not under control, and Americans are paying far too much for everyday goods and services,” Sen. Mike Crapo (R-Idaho) said Tuesday. “While the White House celebrates the mislabeled ‘Inflation Reduction Act’ today, economic data show that food costs rose 11.4 percent over the past year, the largest 12-month increase since May 1979.” The Labor Department announced Wednesday that wholesale inflation was up 8.7 percent, a decrease from 9.8 percent in July, but still high. Since most economists attribute the current inflation more to supply than demand factors affecting the economy, this number also suggests that the inflationary pressures affecting the labor market are set to continue.
Feds: Low unemployment, inflation, recession have economy at crossroads
September 6, 2022 // “Further, many structural barriers existed before the pandemic, including weaker skills, lack of access to affordable, good-quality child care, transportation problems, incarceration, addiction and discrimination,” they wrote. “Individually and collectively, they reduce job matching efficiency.” While they note an economy is in recession when gross domestic product falls in two consecutive quarters, they also state the National Bureau of Economic Research’s definition of a recession relies on a variety of indicators. If we’re in a recession or entering one, economists can’t predict its effects on employment.
The labor market is still red-hot — and it’s helping union organizers
September 1, 2022 // A red-hot labor market that has afforded workers more bargaining power with employers is fueling a string of recent union victories at high-profile U.S. companies. Workers have voted to unionize for the first time in recent weeks at Trader Joe’s and Chipotle. Unions have also made significant inroads at Amazon, Starbucks, Apple and REI, employers that have long resisted unionization. What remains to be seen is whether the job market will stay strong as the Federal Reserve pushes to cool inflation with interest rate hikes. In a speech in Jackson Hole, Wyo., last week, central bank chief Jerome H. Powell acknowledged that the rate hikes would likely inflict “some pain” on businesses and households and probably weaken the labor market. Guy Berger, LinkedIn, Julia Pollak, Zip Recruiter, John Logan, Atulya Dora-Laskey,
Opinion: An unprecedented labor shortage
July 26, 2022 // There are 50% more job openings today than at any time before the pandemic. The unemployment rate is near a half-century low. So how did that happen? A combination of government policies that simultaneously reduced the supply of workers and stimulated demand for goods and services. There are 755,000 fewer people employed today than at the start of the pandemic, despite an increase of 4.2 million in the population of people ages 16 and older. employment-to-population ratio, labor force decline, Social Security, welfare-without-work, federal subsidies, Recognized Apprenticeship Programs, Heritage Foundation’s Grover M. Hermann Center for the Federal Budget, education alternatives, encourage flexible work
Opinion: Handcuffing Freelancers Is Bad For Economy And Small Business
June 3, 2022 // Addressing the increasing economic uncertainty, rising inflation, and declining consumer confidence requires a pro-growth economic response from Washington D.C. The right policy focuses on broad-based deregulation to reduce costs on businesses, encourage entrepreneurship, and incent greater economic activity
Worker productivity saw its biggest drop since 1947 in the first quarter—but experts say the headline figures don’t tell the whole story
May 9, 2022 // American workers’ productivity dropped sharply in the first quarter of 2022, notching the largest three-month decline since 1947. Non-farm productivity, which measures worker output against hours worked, sank 7.5% from January through March, the Bureau of Labor Statistics reported on Thursday.
Millions of people who left the US job market last year plan to stay away in an act of ‘long social distancing,’ fanning the flames of inflation
April 21, 2022 // The dropouts were most likely to be women, those lacking a college degree, and people working in low-paid sectors, the researchers said. A quarter of those unwilling to return to pre-pandemic activities cited pandemic fears as a primary or secondary factor.