Labour market not tight, jobs recovery underway: Daly

    Despite US employers’ complaints that workers are hard to find, there are nearly 10 million people unemployed and more sitting on the margins of the job market, said Mary Daly, president of the San Francisco Federal Reserve, who expects many more of them will return to operation as the economy recovers.

    “Countless factors are mitigating the job offer right now – the need to take care of the children, the fears of Covid, the generous unemployment benefits,” Daly said in a blog post on Tuesday. “But there is no reason to expect that these will be permanent or even extremely persistent features of the labor market.”

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    Daly made the remarks after two of the US Federal Reserve’s toughest politicians – Fed Governor Christopher Waller and St Louis Fed Chairman James Bullard – said in recent days that they believed the labor market recovery was coming to an end. paving the way for the Fed to begin reducing its support for the economy in a few months.

    In its comments, Daly did not consider a possible reduction in the Fed’s bond-buying program.

    , which were published not in the usual form of prepared remarks for a scheduled speech, but as a two-page blog post.

    But by saying job recovery in workers aged 25 to 54 is “in progress” and returning to pre-pandemic expansion, when more people returned to work than many policymakers expected, Daly’s comments serve as an argument for continuing to support the Fed and not for haste. to remove it.

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