May 7, 2021
I think this is just as much about a shortage in labor supply as it is about a shortage of labor demand.Economist Jason Fuhrman on the lower than expected job creation in April.
- Fuhrman, who worked as an advisor for the Obama administration and is now an economist at Harvard University, says, “If you look at April, it appears that there were about 1.1 unemployed workers for every job opening. So there are a lot of jobs out there, there is just still not a lot of labor supply.”
- The expectations for April – 1 million jobs created. The data showed 266,000 created. The unemployment rate ticked up slightly to 6.1%.
- Some like Fuhrman may believe there is simply a lack of available workers, or qualified workers for the jobs that are available. Others disagree, and say no labor shortage exists.
- A revision to March's numbers lower also gave economists pause.
- Why It Matters: America still needs to recover 7.5 million jobs from pandemic's impact on the economy.
Here's a good read on the jobs report.
by Jenna Lee,