Is there a labor shortage?

A panel discusses ongoing and prospective developments in the US labor market. Michael Horrigan points out that job losses in the COVID recession were heavily concentrated among women, minorities, and less-educated workers. In turn, these groups have shown less progress regaining jobs, and many have left the labor force. Horrigan shows that the industry connection between vacancies and wage increases is not at all tight, suggesting that traditional explanations that labor shortages are a matter of wages not clearing the market needs to be modified. Misty Heggeness notes that much of the weakness in women's recent labor force participation has been by working mothers, but that their behavior has not been radically different than in the past. Policies that address the concerns of working mothers could lessen the possibility of swings like those recently seen. Kate Bahn expands to discuss more specific such policies, including paid leave, paid sick leave, more predictable work schedules, greater income support, as well as a revival of unions, as means to not only alleviate hardship, but also to increase labor market efficiency. Michael Strain contends that federal policy greatly enhanced consumer demand, but the income support programs, along with other problems, have restricted supply, leading to some of the distortions observed in the labor market. While he supports some of the policies proposed by other panelists, he is leery about the effects of specific government programs that have been offered.

A feminist perspective on COVID-19 and the value of care work globally.

The shared response to the COVID-19 crisis demonstrates that the vast majority of society believes human wellbeing - not economic growth - should be at the centre of policy. COVID-19 exposes the foundational role of care work, both paid and unpaid, to functioning societies and economies. Focusing on 'production' instead of the sustainable reproduction of human life devalues care work and those who perform it. Women's physical and mental health, and the societies that rely on them, are at stake. When these policies are formulated, the field of feminist economics has valuable lessons for mitigating hardships as countries navigate the related economic fallout. A comprehensive response to the COVID-19 crisis must recognize this gendered work as an integral part of the economic system that promotes human wellbeing for all.