Oct 10, 2023
Economic issues can be eased with more women in the workforce: economist
, BNN Bloomberg
The Fed is at a point where they want to hold steady: Claudia Sahm
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Women are helping to ease labour shortages in the U.S. and Canada as they re-enter the workforce post-pandemic, and their participation has potential to benefit the economy in other ways, according to a former U.S. Federal Reserve economist.
The North American economy posted unexpected strength in the labour market last month, with the U.S. economy adding 336,000 jobs in September and Canada gaining 64,000 jobs in the same period.
South of the border, 75 per cent of women between the ages of 25 and 54 are now in the workforce, a historic high for the U.S. that reverses a trend seen during the pandemic when many women took on caregiving roles, former U.S. Federal Reserve economist Claudia Sahm told BNN Bloomberg on Tuesday.
“Women were a big contributor to getting some of these jobs filled. The service sector is still where a lot of the openings are, and they are helping to fill that,” said Sahm, who is also the founder of Sahm Consulting.
“The best way to solve a labour shortage is with labour,” she added.
Sahm pointed out that Canada has more women in its workforce than the U.S. She said she hopes to see this trend continue, saying it would help ease long-term economic challenges.
Inflation is one such concern, and Sahm explained that more women in the workforce can help in that area by increasing the overall supply of labour, thereby reducing upward pressure on wages and inflation in turn.
Sahm also made the case that having more women in the workforce would help ease some big-picture challenges with economic productivity and growth. More friendly social policies will be needed in order for that to happen, she said.
“There’s a lot of room in terms of helping women, whether it’s through a safety net, social policy, childcare or whether it’s employers setting up work for women,” Sahm said.
The results would boost economies in the U.S. and Canada in the future, she added.
“We can really gain a lot over the long term by continuing this trend,” she said.
The North American economy posted unexpected strength in the labour market last month, with the U.S. economy adding 336,000 jobs in September and Canada gaining 64,000 jobs in the same period.
South of the border, 75 per cent of women between the ages of 25 and 54 are now in the workforce, a historic high for the U.S. that reverses a trend seen during the pandemic when many women took on caregiving roles, former U.S. Federal Reserve economist Claudia Sahm told BNN Bloomberg on Tuesday.
“Women were a big contributor to getting some of these jobs filled. The service sector is still where a lot of the openings are, and they are helping to fill that,” said Sahm, who is also the founder of Sahm Consulting.
“The best way to solve a labour shortage is with labour,” she added.
Sahm pointed out that Canada has more women in its workforce than the U.S. She said she hopes to see this trend continue, saying it would help ease long-term economic challenges.
Inflation is one such concern, and Sahm explained that more women in the workforce can help in that area by increasing the overall supply of labour, thereby reducing upward pressure on wages and inflation in turn.
Sahm also made the case that having more women in the workforce would help ease some big-picture challenges with economic productivity and growth. More friendly social policies will be needed in order for that to happen, she said.
“There’s a lot of room in terms of helping women, whether it’s through a safety net, social policy, childcare or whether it’s employers setting up work for women,” Sahm said.
The results would boost economies in the U.S. and Canada in the future, she added.
“We can really gain a lot over the long term by continuing this trend,” she said.
