Statewide Iowa — Economists from Drake and Iowa State say researchers are on unfamiliar ground as they evaluate how the economy has been affected by the pandemic.
ISU economist Peter Orazem says after the recession hit in 2008, it took seven years to return to pre-recession employment rates, but this recession is nothing like that.
Drake University economist Bill Boal says there’s no data yet to confirm why so many dropped out of the labor market when the pandemic struck and haven’t returned once businesses reopened.
Wage expectations, particularly among blue collar workers, have gone up as pandemic closures ended. While the overall savings rate has soared, Boal says it’s primarily been among those who had jobs during the pandemic. Orazem warns if consumers start spending what they’ve saved, inflation may rise.
Orazem and Boal made their comments this weekend on the “Iowa Press” program on Iowa PBS.
