This morning the Center on Budget and Policy Priorities in collaboration with leaders in the field of economics launched a push for a full employment agenda in America. At the current moment when five years into the recovery there are still too few jobs for those who want to work, this effort couldn’t be more critical for the country and our own state of North Carolina.
So what would it mean to set as a goal full employment? Full employment is generally described as the situation where the number of people seeking jobs and the number of employers seeking workers is closely matched. The traditional trade-off economists focus on in discussions of full employment is the negative relationship with inflation. But in practice, it is difficult to accurately pin down a level of unemployment that leads to rising inflation and there are tools available to allow the Federal Reserve to address inflation if it begins to tick up.
The benefits of full employment are too great to ignore. A tight labor market pushes for more equitable distribution of growth, improves the connection to the labor market of workers and improves career trajectories. Full employment is also connected to higher hourly wages and more work hours which is especially important as involuntary part-time work has grown. It also has been demonstrated to improve fiscal accounts as revenues increase and expenditures on some safety net programs decline.
A full employment agenda requires federal and state policy action. Among the policies that will be explored during today’s symposium are:
- Stimulative fiscal policy
- Lowering the trade deficit
- Direct job creation
- Manufacturing jobs
- Apprenticeships and On-the-Job Training
- Job quality
These concrete ideas for our economy, based in the best available evidence, provide an important re-orientation at a time when we are all seeking to improve the opportunities for working North Carolinians and Americans and grow our economy better into the future.
You can watch the launch of this event live here.