With the COVID Relief Bill Signed Yellen Turns Focus on Unemployment


The big relief bill is signed now begins the sales pitch. The president and vice president and various and sundry Cabinet members are traveling or otherwise making the rounds, making their case among them. Treasury Secretary Janet Yellen, which is where we come in. Yellen said on ABC over the weekend that she is hopeful will be back near full employment next year. Back near is the operative phrase there because it had been widely assumed we were at full employment. Before everything fell apart. 3.5%, if you remember was the unemployment rate in February of 2020. So with everything in the past year in this economy What you suppose full employment's gonna look like now and more to the point water policy makers at the Fed and Treasury going to do about it if and when we get there, Marketplaces Mitchell Hartman starts us off. Full employment is a perfect sweet spot for the economy. Thea unemployment rate is as low as it can get, without employers having to bid up wages through the roof to get the workers they need. Everyone who wants a job can get one and inflation doesn't soar out of control, Dean Baker at the Center for Economic and Policy Research, says. In the past, policymakers have often put the brakes on before we got to full employment. But, he says in this recovery from massive pandemic job loss, they seem to be following a more ambitious unemployment script. They really do want to press the economy to see how low we could go. That likely means getting headline unemployment down to 3.5% again. But economist Mark Paul at New College of Florida says policymakers will also try to get other measures of worker to stress and financial hardship. Down. This means looking at unemployment rates for certain groups that have traditionally been stigmatized in the labor market. Such a black workers who tend to experience unemployment rates twice that of white workers. Black unemployment is up 4% in the pandemic. For White Americans. It's up just 2.5% and many more women with kids at home have dropped out of the labor force than men. Now, job creation is accelerating, and it's likely to continue with new government stimulus. Covad cases down and vaccination up Economist Damn north at credit insurer Euler Hermes North America says the economy has a lot of ground to make up. He estimates at least 30% of small businesses have folded. New businesses are going to start up, but it will take a wild probably T O late, 2022 early 2023 to get all the jobs back. And to get back to a full employment economy. I'm Mitchell Hartman for

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