Economics
Governments Must Act to Ease Tight Labor Markets, IMF Study Says
- Controlling pandemic, boosting training among IMF suggestions
- Wage gains had muted impact on overall inflation, fund says
A worker prepares a railroad grain hopper car in Edinburgh, Indiana, U.S.
Photographer: Luke Sharrett/BloombergThis article is for subscribers only.
International Monetary Fund researchers urged governments to take stronger steps to alleviate labor shortages, including measures to improve control of the pandemic and bolster training programs.
While further wage increases will help ease labor market pressures by attracting additional workers, government policies need to amplify those market forces, the IMF said in a paper and blog post released Thursday. Controlling the pandemic through vaccines, testing and treatments will enable more experienced, low-skilled workers in contact-intensive industries and women with young children to fully rejoin the workforce.