San Francisco Fed President Mary Daly said in a blog post that “myriad factors are tempering labor supply at the moment”. However, ” there is no reason to expect those to be permanent or even highly persistent features of the labor market.”
She pointed to the “aftermath of the Great Recession” as the downturn “put millions of prime-age men and women out of work “. And, “many believed that this would never reverse”.
“But none of those factors proved to be binding,” she said, “As the economy improved, workers came off the sidelines. And year after year, the employment rate rose, eventually surpassing its pre-recession peak”.
“The lesson is simple: Americans want to work and it would be a mistake to assume otherwise,” She concluded.
