On July 17th, the President’s Council of Economic Advisers (CEA) released a new report about the change in labor force participation and how it relates to the underlying demographic, structural and cyclical trends affecting the labor market. CEA Chairman Jason Furman joined The Hamilton Project to discuss the report and the implications these labor force changes have for outstanding challenges like lowering long-term unemployment, raising wages, and expanding the economy's potential.
“…While the Fed grapples with how to link wage growth and interest rates, the Obama administration also has much at stake in the debate about US salaries. Last week, Jason Furman, chairman of the White House council of economic advisers, sought to highlight the most encouraging data on the topic, which show that workers in production and nonsupervisory jobs have seen slightly faster wage growth than overall American employees of about 2.3 per cent. But he still said “growing their wages” is the biggest challenge for many Americans…”