How low unemployment lifts workers at the bottom
Published in: Marketplace
“The Federal Reserve, famously, has a dual mandate: price stability and maximum employment. Typically, economists view those two goals as somewhat opposed: If the Fed raises interest rates to quell rising prices, then employment declines, and vice versa. Right now, though, despite the Fed carrying out rate hike after rate hike, unemployment is staying stubbornly low. So far, the labor market is refusing to loosen up. While that is not what the Fed wants — or expects — to happen, a new book looks at the bigger picture of what low unemployment really means for workers and challenges the need for that classic trade-off. Katherine Newman and Elisabeth Jacobs are the authors of “Moving the Needle: What Tight Labor Markets Do for the Poor.” They joined Marketplace’s Amy Scott to talk about the impact that low unemployment can have on the cohort of workers who are often excluded from the workforce.”
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