In 2020’s first forecast of the economy, the officials of the Federal Reserve have said that the participation of the labor force is critical to the growth of the U.S. economy. However, those officials had diverged on if they expected more workers who are eligible to be pulled out of the sidelines and be given the jobs.
Mary Daly and Robert Kaplan who are the Fed Presidents of San Francisco and Dallas have said on Friday that the policymakers must be humble about the fact that they can improve the participation rate of the labor force which is a measure of the total workers divided by the working population in the civilian age in total.
In spite of the fact that unemployment has been steadily gone down to record lows, the participation rate of the labor force in United States has been close to 63% with a bit of improvement across the last five years.
On Friday at a conference which had been held in San Diego, both the officials had said that they were satisfied at keeping the rate from going down. Amidst a population that is aging, globalization, and automation, a lot of the policymakers are expecting these workers at remaining on the sidelines.
Kaplan has said that it is a major accomplishment of keeping it flat for the last few years and predicted that this rate is going to reach 61% in the next few years.
However, a few minutes of the meeting which was held in December had shown that all of the officials of Fed had not been on similar view points. The minutes which had been released on the afternoon of Friday had said that a few of the participants had noted that this rate may rise further still.