Maximum employment in American is unlikely until 2024, a new study from the Federal Reserve Bank of San Francisco shows.
Bloomberg reported there are two key labor market metrics that might take another two years to recover to their pre-pandemic growth, which means full unemployment is not predicted any time soon.
The first is that a high level of retirements has reduced both the labor force participation rate, which is the number of people either working or looking for work.
READ MORE: US EMPLOYERS ADD 467,000 JOBS IN JANUARY DESPITE OMICRON IMPACT
The second is the employment-to-population ratio, which looks at the number of people employed against the total working-age population.
Publishers Sarah Albert and Robert G. Valletta wrote:“Both series are well below trend, suggesting that the labor market is short of the Fed’s maximum-employment goal, despite very strong labor market conditions that partly reflect pandemic-related employment constraints.
“Our analysis suggests that achieving the labor market’s longer-term potential may require a few more years of expansion.
The latest job report showed 467,000 new jobs had been created, despite the problems with Omicron.
But many older Americans retired early during the pandemic and childcare and Covid remain a concern for others looking to get back into work.
Alex McDowell, WhatJobs.com’s Global Head of Partnerships, said: “It’s great to see the market recovering since the pandemic, but looking at the data, we would agree there’s room to continue recovery and look to get pre-pandemic unemployment rates even lower.”
Alex McDowell is the Global Head of Partnerships at WhatJobs.com.
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