Tilly Anticipates Friction as Economy Reopens
Urban Planning Chair Chris Tilly joined KPCC’s “AirTalk” in an episode about decreasing unemployment levels in California. The number of people seeking jobless benefits has fallen steadily all year, but the economy is still recovering from the COVID-19 pandemic. As restaurants and businesses plan to open back up to maximum capacity on June 15, many employers are struggling to get enough employees to return to work. “The labor market and the economy have been in a deep freeze” over the past year and a half, said Tilly, who predicted that there will be some points of friction as the economy reopens. “Many workers are not rushing to go back to work, either because they are still burdened with child or other dependent care, they have their own health concerns, or wages are not sufficient,” he said. But he added that markets have ways of balancing themselves out. “When wages increase, workers are going to materialize.”
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