MNI BRIEF: Fed's Barkin Warns Labor Shortages Could Last

Richmond Fed President Tom Barkin said Tuesday that labor shortages could last "far beyond the pandemic" as workers age, birthrates fall and mismatches persist, crimping overall growth.

Despite a recovery in the unemployment rate to 4.8%, roughly 100 million Americans over age 16 aren't working or looking for work, disproportionately women and those without a college degree, he said. Roughly 16% of them would need to return to the workforce to get the U.S. back to its peak employment-to-population level seen in 2000.

Mismatches, family care, health and incentives are keeping people on the sidelines and the pandemic has intensified these issues, he said. MNI has reported Fed economists have turned more pessimistic about a rapid rebound in workforce participation.