Federal Reserve Bank of Richmond President Tom Barkin said on Friday that the labor supply "looks like it will remain constrained" and that efforts to balance supply and demand "won't be easy when Americans still have about $1.3 trillion more in savings than they did pre-pandemic and fiscal stimulus continues."
Barkin suggested measures such as further investment in education, job training, licensing capacity and rehabilitation, as well as "reimagining the child and elder care industries and exploring benefit and tax policy changes that could incent further workforce participation." He expressed fears that the United States economy is "moving to an environment where labor is short, not long," although he noted the situation can be improved.
