Federal Reserve Executive Says The Delta Variant Surge May Disrupt The Job Market As ‘It’s Creating A Bunch Of Caution’

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Uncertainty about the future is an anathema to job growth. When companies are afraid of what will happen next, they tend to hold off on making decisions. With the possible threat of some sort of shutdown, executives will hold off on hiring and possibly downsize employees.

There will be interviews taking place, but it will go tortiously slow. A few must-need jobs will be filled. All others could be temporarily sidelined. People who currently hold jobs will place their searches on hold. They won’t want to be the last one hired and first fired, if the virus takes a turn for the worst. There is too much on the plate of managers who are engaged with juggling their hybrid, remote, vaccine and mask candidates and don’t have the bandwidth to conduct interviews.

In addition to the headaches of management, the Federal Reserve Bank president offered reasons as to why people don’t want to go back to work. Kashkari said about the mindset of those in between roles, “They've been nervous about [Covid-19], because of childcare issues, because of these enhanced unemployment benefits.”

Caution, due to uncertainty, rules the day. You can’t really blame the companies or workers. Both sides would rather take the conservative and safe approach. Major corporations would prefer to keep their buildings closed, so as not to risk their employees contracting the new Delta variant strain. They will fear potential lawsuits, if people are ordered to return to the office and get sick. Employees feel the paycheck isn’t worth the health risk.

The challenge is: when can we declare victory over the virus? After the Delta variant, will we go through the entire Greek alphabet? It may turn out that we’ll have to live with this, as we contend with cancer and other dangers. due to the recent increase in Covid-19 cases.

 

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It's funny how caution hurts business and recklessness is good for the economy now

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