Instead, it's being caused by competing against a federal government that will, in many cases, distort the labor market by paying potential employees more to not work.
On Friday, the Fed delivered its semiannual report to Congress - and several times, the U.S. monetary policy body noted the $300 a week the federal government has been giving in enhanced unemployment benefits has depressed supply in the labor market.
"With economic activity rebounding, labor demand rose briskly in the spring, while the supply of labor struggled to keep up," it said on page five of the 75-page report.
On page 10 the report noted that "Support from enhanced UI has been especially consequential for lower-wage workers, who have borne the brunt of recent job losses and who have benefited most from broader coverage and higher benefit levels."
"Many of the factors constraining labor force participation should gradually abate in the coming months, and, as they do, the overall participation rate should rise and the demographic disparities in labor force participation that widened during the pandemic will likely continue to narrow," it stated.
As the Daily Wire's Ben Zeisloft noted the Federal Reserve didn't advocate in the report for ending the payments before they're set to automatically expire on Sept. 6.
"As you pointed out, 9.3 million job openings, many millions of people unemployed. There seems to be some kind of a speed limit. It may just be that it's hard to match up with a new job, and people feel like they can wait a little bit longer and really shop carefully."
https://www.westernjournal.com/right-fed-report-congress-confirms-govt-payments-keeping-people-work/
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