NVI Technical College Information

Economic Feasibility

Most of the workers who left the labor force are older Americans.

This is weakening demand and is one of the reasons the baseline

Many of these people have probably retired, in the sense of

forecast expects inflation to moderate by 2023. Essentially, the

expecting to remain permanently out of the labor force, but some

federal government is adopting a restrictive policy that is likely to

can likely be enticed back with the right compensation packages

dampen demand, while at the same

and flexible working hours and conditions.

Labor markets

As is the case in many areas, the pandemic accelerated trends that

The labor market is slowing — but is still hot. The unemployment rate

A

were evident even before it started. Slow labor force growth and

remains low, and the three-month average rate of job growth was

continued high demand had already created conditions that

218,000 in July, substantially above the 50,000 jobs that we estimate

required companies to offer higher wages to lower-skilled workers

would meet the long-run growth of the labor force. The slowing is

and to be more imaginative about hiring.

likely to continue, but the baseline scenario assumes that labor

markets remain tight over the forecast horizon.

In the post – COVID-19 world, companies that make extra effort to

find the workers they need and provide conditions to attract those

While employment has fully recovered from the pandemic, total

workers will have an important competitive advantage.

labor force participation has not. However, the labor force

participation rate for people under the age of 65 hit the

Deloitte ’ s baseline forecast assumes that job growth slows to

prepandemic level in April.

sustainable levels in the next few years.

Source: Deloitte

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