The US labor market is in the best condition in last decade, according to the chairman of the Federal Reserve Janet Yellen, said during a speech to the graduating class at the University of Baltimore. Fed chairman said that the signs of healthy labor market are abundant, among which stand out the stable rate of creation of new jobs and lower share of cuts.
“After years of slow economic recovery you advent of the strongest labor market in more than a decade”, said Yellen. “However, the challenges are not overcome. The economy is growing more slowly than in previous periods of recovery. Productivity growth is also disappointing”, added she.
Yellen pointed out, however, that according to results of a survey, the younger workers are more optimistic about the labor market. She also cited research which shows that those who enter the workforce during a strong economy are more likely to hold a job, stay employed and to enjoy higher incomes.
Meanwhile the Fed chairman said, the data show that the gap between the incomes of people with secondary education and those college graduates has reached an average of 70%. For comparison, in 1980 the difference was 20%.
The two main engines for increasing the difference globalization and technology development, also told Janet Yellen to the graduating class pf the University of Baltimore.
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