What full employment means in a pandemic-ravaged economy


The bigger relief bill is signed now begins the sales pitch the president and vice president in various and sundry cabinet members are travelling 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 here is the operative phrase there because it had been widely assumed we were at full employment before everything fell apart three and a half percent. If you're a member of the unemployment rate in february of twenty twenty so with everything in the past year in this economy what are you suppose. Full employment is gonna look like now and more to the point water policy makers at the fed and treasury gonna do about it. If and when we get there marketplace's mitchell hartman starts us off. Full employment is a perfect sweet spot for the economy. The 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 sore out of control dean baker at the center for economic and policy research says in the past policy makers of often put the brakes on before we got two full employment but he says in this recovery from massive pandemic job loss. They seem to be following a more ambitious on employment script. They really do want impress the economy to see how low we could go. That likely means getting headline unemployment. Down to three and a half percent again but economists 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 as black workers who tend to experience isn't rates whites that of white workers. Black unemployment is up four percent in the pandemic for white americans. It's up just two and a half percent 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 stimulus covid cases down and vaccination up economists dam north at credit insurer euler hermes north america says the economy has a lot of ground to make up. He estimates at least thirty percent of small businesses have folded. New businesses are going to start up but it will take wild probably too late. Twenty twenty two early twenty twenty three to get all the jobs back and to get back to a full employment

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