A top Federal Reserve official warns the current jobs crisis could go on until 2013 as more employers become comfortable with doing more with less.
An article in the Huffington Post says Federal Reserve Bank of San Francisco President Janet Yellen refers to it as a “paradigm shift,” a case in which businesses have learned that they can still cut workers yet maintain output.
Even as the country has shed 8.4 million jobs since the start of this recession in December 2007, the article reports worker productivity has reached its highest three-quarter average in more than 40 years.
“The recession has forced businesses to reexamine just about everything they do with an eye toward restraining costs and boosting efficiency,” says Yellen. “Strapped by tight credit and plummeting sales, businesses have overhauled the way they manage supply chains, inventory, production practices, and staffing. Stores don’t order merchandise unless they think they can sell it right away. Manufacturers and builders don’t produce unless they have buyers lined up.
“This process of implementing new efficiency gains may have only begun and we may be in store for further efficiency improvements and high productivity growth for some time. If so, the rate of job creation will be frustratingly slow.”
Yellen’s remarks are more proof of the urgency and need for bold action towards addressing this country’s jobs crisis. Click here to tell your Representative and Senators the unemployed don’t have until 2013. America needs JOBS Now!
Also, join Ur Union of Unemployed, or UCubed, an online movement to organize the 30 million unemployed and get Americans back to work. Unite and let your voice be heard.