The July jobs report ends the myth of a 'damaging' labor shortage, former Obama economist says

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"There are always pockets, there are always places where people can't find the workers they need," Shierholz said. But it's not widespread enough to be a core dynamic in the labor market.

Jason Furman, a former top economist to President Barack Obama, wrote in a tweet that"You can reasonably argue it was a 'huge good labor shortage' and not a 'huge damaging' one." He later saidthe lower rates of job-searching stemmed from the $300 federal weekly supplement in President Joe Biden's stimulus law, which he now favors scaling back.

 

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