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Unemployment rate declines while wages increase and farmers still need workers
One of President Biden’s economic advisors tells Brownfield Friday’s jobs report is likely to set the stage for this year’s labor market.
Jared Bernstein says the unemployment rate fell almost three points in 2021.
“That’s the fastest decline on record for the jobless rate,” he says.
At the same time, he says wages are rising faster than inflation.
“They’re actually growing faster for lower and middle-wage workers than they are for higher-paid workers,” he says.
Bernstein adds inflationary pressures and supply chain disruptions are likely to ease for farmers in the second half of next year, pointing to efforts to increase container movement at ports and support the trucking sector.
Recent analysis by the University of Illinois finds declining labor force participation is likely tied to retiring Baby Boomers. Ag economists there suggest wage inflation is becoming a structural change in the labor supply which also could support higher demand and prices for goods and services in the coming years if the trend sticks.
