PRESIDENT BIDENS COUNCIL OF
ECONOMIC ADVISERS.
THIS IS THE FIRST REACTION WERE
GETTING FROM THE WHITE HOUSE TO
THE JOBS REPORT.
HEATHER, CAN YOU EXPLAIN WHAT
HAPPENED?
THERE ARE A LOT OF OPEN JOBS OUT
THERE AND THEYRE NOT GETTING
FILLED.
WHY NOT?
>> WELL, YOU KNOW, HERES WHAT
WE SAW FROM APRILS JOBS REPORT,
STEPHANIE.
WE ADDED ABOUT A LITTLE OVER
500,000 JOBS PER MONTH FOR THE
PAST THREE MONTHS.
THE PACE IS HIGHER THAN THE
THREE MONTHS PRIOR TO THIS,
WHERE WE ONLY ADDED ABOUT 60,000
OF JOBS PER MONTH.
WE SAW A LOT OF INDICATIONS DEEP
IN THE DATA FROM APRIL THAT
PEOPLE ARE INCREASINGLY
SEARCHING FOR WORK.
WE SAW AN UPTICK IN THE LABOR
FORCE PARTICIPATION RATE.
WE SAW A DECREASE IN THE SHARE
OF WORKS WORKING VOLUNTARILY
PART TIME.
WE SAW AN INCREASE IN HOURS.
WE DID NOT SEE AN INCREASE IN
PEOPLE WORKING MULTIPLE JOBS,
HOWEVER.
IN FACT, WE SAW THE LARGEST
ONE-MONTH INCREASE IN THE SHARE
OF PEOPLE WHO SAY THAT THEY
ARE -- THAT COVID IS NOT
PREVENTING THEM FROM SEARCHING
FOR WORK.
WE SAW THE LARGEST ONE-MONTH
INCREASE SINCE OCTOBER.
BUT THERES A LOT OF INDICATION
THAT DEEP IN THE DATA THAT FOLKS
ARE OUT THERE SEARCHING FOR
JOBS, AND WE CONTINUE TO HAVE
OVER 8.2 MILLION FOLKS DOWN 8.2
MILLION JOBS RELATIVE TO WHERE
WE WERE PRE-PANDEMIC.
BUT I WANT TO EMPHASIZE, WE DID
5D JOBS THIS MON WERE CERTAINLY
ON TRACK SO WE CAN SEE A LOT OF
EVIDENCE THAT THE AMERICAN
RESCUE PLAN IS INDEED DOING ITS
JOB.
MAKING IT SAFE FOR AMERICANS TO
GET BACK TO WORK.
>> HEATHER, THE LAST TIME YOU
WERE HERE I ASKED YOU ABOUT
PEOPLE CHOOSING NOT TO GO BACK
TO WORK.
EMPLOYERS ACROSS THE COUNTRY,
ESPECIALLY IN THE HOSPITALITY
INDUSTRY, TELLING US DAY IN AND
DAY OUT THEY CANNOT GET WORKERS
BACK.
WITH WORKERS GETTING PAID AND
IM NOT SAYING THEY DONT NEED
IT OR ITS NOT TOO MUCH, WITH
PEOPLE GETTING PAID ABOUT $15,
$16 AN HOUR ON UNEMPLOYMENT
BENEFITS, IT PAYS THEM MORE TO
STAY HOME THAN IT DOES TO FILL
THOSE JOBS.
LAST TIME YOU WERE HERE, YOU
SAID YOU DIDNT SEEFDS OF EVIDEN
THAT.
HOW ABOUT NOW?
>> STILL DONT SEE STRONG
EVIDENCE OF THAT, STEPHANIE.
IN FACT, HERES THE THING, IN
APRIL THE LARGEST GAINS IN JOB
CREATION WERE IN LEISURE AND
HOSS PA TELLTY,
HOSPITALITY, WHICH INCLUDES
RESTAURANTS AND BARS.
>> OF COURSE WE WOULD.
THATS THE ONE INDUSTRY THAT HAS
RESTRICTIONS ON THEM, OPENED THE
MOST AND AS WE GET VACCINATED,
THE FIRST THING WE DO IS GO OUT
AND SOCIALIZE.
THATS KIND OF AN OF COURSE,
RIGHT?
>> RIGHT.
BUT WE ARE SEEING THAT.
SO I THINK THAT DOES INDICATE
THAT FOLKS OUT THERE ARE GETTING
JOBS IN THAT SECTOR.
THE PACE OF JOBS IN THAT SECTOR
ARE INCREASING.
SO I THINK THATS AN IMPORTANT
DATA POINT.
WE ARE NOT SEEING, HOWEVER,
THERES A LOT OF FOLKS WHO ARE
NOT SEARCHING BECAUSE OF
UNEMPLOYMENT BENEFITS, INDEED AS
THIS REPORT SHOWS, THERE WAS AN
UPTICK IN LABOR SUPPLY LAST
MONTH AND IT STILL REMAINS A
DIFFICULT LABOR MARKET FOR
MILLIONS OF WORKERS.
PANDEMIC, COMING OUT OF THIS
PANDEMIC IS CHALLENGING.
WE HAVE DIFFERENT CONDITIONS
ACROSS THE COUNTRY.
WE CAN SEE THE AMERICAN RESCUE
PLAN REALLY DOING ITS JOB,
SUPPORTING FAMILIES, MAKING SURE
THEY HAVE THE CHILDCARE CENTERS
OPEN, SCHOOLS ARE GETTING OPEN
SO PEOPLE CAN GET BACK TO WORK
AND THEY INCREASINGLY GOT THOSE
SHOTS IN ARMS WHICH MAKES IT
SAFE TO BE OUT THERE.
>> IS THAT $39 BILLION FROM THE
AMERICAN RESCUE PLAN MAKING ITS
WAY TO CHILDCARE CENTERS?
EXACTLY WHERE?
BECAUSE ONE NUMBER THAT STICKS
OUT TO ME IS WERE NOT SEEING
WOMEN GO BACK TO WORK.
THEYRE STILL DEALING WITH
CHILDCARE ISSUES.
HAS THAT MONEY BEEN IMPLEMENTED?
>> ITS STARTING TO GET OUT
THERE AND WEVE SEEN A LOT OF
PROGRESS IN TERMS OF SCHOOLS
REOPENING.
HERES THE THING, IN THIS
MONTHS REPORT, YOU DIDNT SEE
REALLY LARGE JUMPS IN LABOR
SUPPLY FOR EITHER MEN NOR WOMEN.
BUT YOURE SEEING THIS STEADY
INCREASE AND CERTAINLY NOT THE
DECREASE.
SO I THINK WHAT WE SAW THIS
MONTH IS, AGAIN, THE PACE OF JOB
GAINS IS, YOU KNOW, GOOD OVER
THE PAST FEW MONTHS AND WERE
SEEING THE EFFECTS OF THE PLAN
OUT THERE, HELPING FOLKS BE ABLE
TO GET BACK TO WORK.
>> COME NEXT WEEK, WHEN WE SEE
THE JOBS OPENINGS REPORT,
ASSUMING THATS ENORMOUS AND I
WOULD SAY THAT BASED ON ALL OF
THE BUSINESSES THAT WE POLL
EVERY DAY, WHAT ARE YOU GOING TO
MAKE OF THAT?
>> WELL, YOU KNOW, ALL OF THESE
DATA POINTS ARE DATA POINTS.
MANY.
>> I DONT KNOW WHAT THAT MEANS.
>> ALL OF THEM, WE TAKE THEM ALL
TOGETHER.
SO THIS WEEK, FOR EXAMPLE, WE
SAW THAT SHARP DECREASE IN THE
ONE MONTH -- AND AGAIN, WE DONT
MAKE IT TOO MUCH ABOUT ANY
ONE-WEEK CHANGE BUT THAT SHARP
DECREASE IN THE NUMBER OF FOLKS
APPLYING FOR UNEMPLOYMENT
BENEFITS.
SO WE ARE SEEING THIS STRONG,
STEADY, STABLE PROGRESS TO GET
BACK TO A -- BACK TO NORMAL.
I EXPECT WE WILL CONTINUE TO SEE
BUSINESSES OPENING UP,
CONTINUING TO HIRE PEOPLE AND
PEOPLE CONTINUING TO GET BACK TO
WORK.
AGAIN, THERE ARE INDICATIONS
THROUGHOUT THIS REPORT PEOPLE
ARE INCREASINGLY SEARCHING,
THEYRE INCREASINGLY READY TO
GET BACK TO WORK.
NOT SAYING COVID IS PREVENTING
THEM FROM ET GOODING AGETTING A
THINK THAT IS MOVEMENT IN THE
RIGHT DIRECTION.
>> DO YOU THINK ADJUSTMENTS NEED
TO BE MADE TO THE WAY
UNEMPLOYMENT WORKS?
FOR EXAMPLE, RIGHT NOW, WE DONT
OFFER ANY SAVINGS FOR PEOPLE
TRYING TO GET BACK TO WORK OR
PART-TIME UNEMPLOYMENT.
ITS ALL OR NOTHING.
FOR MOST STATES, THEY STILL HAVE
THE PANDEMIC UNEMPLOYMENT RULES
WHERE YOU DONT ACTUALLY HAVE TO
GO OUT AND SEEK A JOB WHILE
YOURE GETTING THE BENEFIT.
SHOULD WE CHANGE THAT?
SOME STATES ARE PULLING THAT
BACK.
>> UNEMPLOYMENT BENEFITS ARE
THERE FOR FOLKS WHEN THEY CANT
FIND A JOB AND THEY LOST THEIR
JOB.
PEOPLE HAVE TO CERTIFY THAT.
SO FOLKS THAT ARE RECEIVING
THOSE BENEFITS HAVE TO SAY THAT
THEY ARE SEARCHING FOR WORK AND
THEY HAVENT BEEN OFFERED A JOB
THAT THEYRE NOT TAKING.
SO THAT SYSTEM IS WORKING FOR
PEOPLE.
IT IS INCREDIBLY IMPORTANT IN AN
ECONOMY WHERE WE HAVE 8
MILLION -- OVER 8 MILLION FEWER
JOBS THAN WE DID PRE-PANDEMIC
BUT YOU HAVE THAT BENEFIT
AVAILABLE AS PEOPLE CONTINUE TO
SEARCH FOR WORK.
AND WELL NOTE WE DO HAVE A
PROGRAM AVAILABLE IF OVER HALF
THE STATES THAT ALLOWS PART-TIME
UNEMPLOYMENT BENEFITS.
ITS CALLED SHORT-TIME
COMPENSATION PROGRAM.
EMPLOYERS CAN IMPLEMENT IT.
IF THEY WANT TO BRING BACK
WORKERS AND HAVE THEM HAVE
REDUCED HOURS, THEY CAN ALLOW
FOLKS TO RECEIVE PARTIAL
UNEMPLOYMENT BENEFITS.
THAT IS AVAILABLE IN MOST STATES
AND EMPLOYERS HAVE THE OPTION OF
TAKING THAT UP.
>> WHAT IS YOUR TAKE ON THE
SHORTAGES WE ARE SEEING NOW,
YOURE TALKING CHICKEN TO
FURNITURE, AND THIS IS REALLY
PUSHING PRICES HIGHER.
WHAT ARE YOUR INFLATIONARY
CONCERNS?
>> LISTEN, THIS PANDEMIC HAS
BEEN A REAL BEAR.
WE ALL KNOW IT.
WE KNOW IT CAUSED AN ENORMOUS
SUPPLY SHOCK TO OUR ECONOMY OVER
2020 AND WE ARE TRYING TO WORK
OUR WAY OUT OF IT.
AND WEVE KNOWN THERE WOULD BE A
SUPPLY CHAIN BOTTLENECK AS
THINGS GOT BACK UP AND RUNNING
AND AS BUSINESSES TRY TO GET
BACK TO THE WORK OF DOING THEIR
BUSINESSES.
AND THAT IS WHY THE AMERICAN
RESCUE PLAN PROVIDED AID AND
SUPPORT TO BUSINESSES AND TO
FAMILIES AND TO COMMUNITIES IN
ORDER TO MAKE THAT POSSIBLE.
THINGS LIKE, YOU KNOW, HELPING
BUSINESSES WITH THEIR PAYROLL OR
THEIR OTHER EXPENSES.
THIS WEEK WE TALKED A LOT ABOUT
THE AID AND SUPPORT TO
RESTAURANTS TO HELP THEM GET
BACK UP AND RUNNING AND HELP
COVER THEIR COSTS.
THESE ARE ALL POLICIES THAT CAN
HELP UNLOCK SOME OF THOSE
BOTTLENECKS.
BUT THIS IS A BIG, ENORMOUS
CHALLENGE IN OUR ECONOMY.
WE HAVE TO BE PATIENT AS WE GET
THROUGH IT.
BUT WERE WORKING OUR WAY
THROUGH WITH THESE POLICIES, AND
I THINK WE SEE A LOT OF EVIDENCE
IN TODAYS REPORT THAT WE ARE
MOVING IN THE RIGHT DIRECTION.
>> ITS POTENTIALLY HOPEFULLY A
GOOD MOMENT FOR WORKERS.
THERES A LOT OF JOBS OUT THERE
AND ITS PUTTING PRESSURE ON
WAGES.
THAT $28 BILLION IN THE AMERICAN
RESCUE PLAN THAT IS GOING
SPECIFICALLY TO RESTAURANTS,
WHEN DO YOU SEE THAT MONEY GOING
OUT?
POTENTIALLY, IT COULD BE USED TO
PAY PEOPLE MORE.
THATS ONE OF THE REASONS ALL OF
THESE RESTAURANTS SAY THEYRE
NOT GETTING WORKERS, IF YOU PAY
THEM MORE, THEYLL SHOW UP.
>> CERTAINLY.
THE APPLICATION PORTAL OPENED ON
MONDAY, AND THEN WE HAD A
RECORD -- STRONG NUMBER OF FOLKS
APPLY FOR THOSE BENEFITS.
AND THE PROGRAM IS NOW GOING TO
GET UP AND RUNNING AND THEYLL
START GETTING OUT BENEFITS IN
THE WEEKS TO COME.
ITS REALLY IMPORTANT THAT
RESTAURANT OWNERS KNOW THAT THAT
BENEFIT IS AVAILABLE TO THEM,
THAT THEY CAN GET ON TO THE
PORTAL THROUGH THE SMALL
BUSINESS ASSOCIATION AND APPLY
FOR THAT AID TO HELP COVER
EXPENSES FOR PAYROLL, UTILITIES,