Addressing the Worker Shortage

The issue of how to find and encourage enough potential workers to actively seek employment, as part of an effort to reduce the historically unusual number of job vacancies, appears to be gaining traction in Washington.  We have previously commented on the problem of the below average labor force participation rate, most recently in our blog of August 31, 2022, “Good Paying American Jobs.”

Increased workforce participation is highly desirable at a number of levels, including such areas as productivity, supply chain issues and societal costs. 

A stronger workforce is clearly a constructive outcome for investors.  However, it is important to carefully assess what kind of approaches are contemplated and the potential impact on the overall economy and individual sectors.  For instance, a massive increase in the national debt, may cause more harm the good.

All comments and suggestions are welcome.

Walter J. Kirchberger CFA