Managing Director and Chief Economist of the IIF, Robin Brooks, joins The Big Questions again this week to discuss what he sees as a "painful and slow" US labor market recovery post-COVID-19. Robin has written extensively on the topic recently, projecting US unemployment of 11 percent end-2020 and 8 percent end-2021.
Further, he warns that unlike previous recessions, the COVID-19 shock hit services employment especially hard. As a result, many of the jobs lost have been in retail, entertainment and hospitality, which is really just speeding structural changes that were underway well before the virus. In his view, this makes a complete labor market recovery, even over the medium term, increasingly unlikely.