Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, said that the April jobs report highlights how far the US has to go in reviving its labor market.
Economists are shocked due to the fragility of the US economic recovery. According to data published by the Bureau of Labor Statistics on Friday, in April The US added only 266,000 confirm payrolls.
In comparison to a median estimate of 1 million payrolls and the March sum of 770,000.
Kashkari said on CBS’s “Face the Nation” that
the data proves the country is far from a full recovery.
He added that even though certain pockets of the economy are roaring back, the policymakers shouldn’t retreat from providing support until millions more Americans find their way back into the workforce.
He said if the COVID pandemic had not hit then approximately eight to 10 million Americans should be working right now. So America still needs to do everything it can to put these people back to work and do it quickly.
The April figures cannot be pinned to any single factor the Fed president added.
This shortfall resulted in many Republicans blaming the expanded unemployment benefits leading to a decrease in the motivation to work.
On Monday, President Joe Biden did not agree to these claims, saying the benefit helped millions of Americans to stay afloat.
He further added that jobless Americans refusing to work shouldn’t be able to stay on unemployment insurance, which is not an announcement of a new policy, but reinstatement of prior requirements implemented by the states.
Childcare shortages are one of the factors for many parents missing out on work.
For many others, the fear of contracting COVID-19 outweighs their job search the Fed president said.
Kashkari said when the virus slows down, and schools reopen people will regain their confidence, this could lead to strong growth in the second half of the year resulting in strong labor market recovery.
Reference Source: Business Insider
https://www.compareclosing.com/mortgagenews/the-labor-market-in-america-requires-more-support/
