Opinion

Americans have gone back to work. Now we can move toward steady growth.

Over the past year and half, Americans have gotten back to work in record numbers — faster than during any previous recovery in modern history. For example, the share of people between the ages of 25 and 54 who are employed — a metric that economists watch closely to understand the health of the labor market — has recovered faster since April 2020 than it did during the previous four recoveries.

Importantly, this recovery has also been more equitable than those in the past. The share of Black men who are employed now exceeds the share immediately before the pandemic — which was not the case during the last two economic downturns. Overall labor force participation is still below pre-pandemic levels, due in part to demographic trends, and we have more work to do to ensure that all Americans who want to work can work. But the labor market is closing the gap much faster than during the past two recoveries.

And what about the historically high number of people quitting their jobs? Economic research shows that a high level of “quits” is typical in fast recoveries, when demand for labor increases. But though quits are high, many more workers have been hired into new jobs. In fact, hiring has outpaced quits in every major sector, with higher levels of both in lower-wage sectors, such as leisure and hospitality. What this means is that many workers are feeling empowered to look for new work — and to get better jobs.

What is responsible for these shifts in the labor market? When President Biden took office, the unemployment rate was 6.4 percent and nonpartisan expert projections anticipated that unemployment would remain above 4 percent for years. In May, the unemployment rate was at 3.6 percent — near historic lows. But in the face of a range of risks and uncertainties, the president’s main economic goal was to drive a faster, stronger, inclusive economic recovery that would get Americans back to work quickly and safely, often in better jobs. The strong labor market recovery would not have happened to this extent without the administration’s economic package and its focus on fighting the pandemic.

Our historic labor market underscores two things: first, that Americans want to work, and second, that the strength of the recovery has positioned our economy well to transition into a kind of steady and stable growth. That means a recovery in which we see employment growth consistent with a low unemployment rate and solid and sustainable real wage increases. This will mean rising living standards for working families and the middle class — a contrast to many years in the decades before the pandemic, when economic growth was too slow and wage gains too minimal to deliver better economic outcomes for working families.

How do we make that transition happen without giving up all the gains American workers have made? As the president has made clear, it begins with respecting the Federal Reserve’s independence as that institution adjusts its monetary policy to bring down inflation. Beyond the Fed, there is a range of steps that the president is taking — and that Congress should take with him — to ensure that anyone who wants to work is able to work and that we can achieve the kind of economic transition that leads to gains for American workers.

For example, we should dramatically expand tools like the Registered Apprenticeship program for career technical education, as well as pre-apprenticeship programs, to boost the pipeline of trained workers. The trucking industry is an example of a sector where we are already doing this. We also need to improve the quality of jobs for Americans, including by giving workers more of a voice in the workplace. At the Labor Department, we are focused on high-quality-job creation through our Good Jobs Initiative, which is reaching workers in many of the sectors critical to making our economy run, including transportation, warehousing, and child and elder care.

We should invest in lowering the cost of child care, making it easier for parents to join the workforce. We should extend the expanded earned income tax credit, which helps ensure that low-wage workers are not taxed into poverty and makes it easier for them to participate in the labor market.

And as the administration takes action to improve the work permit process and reduce the visa backlog, we should pass comprehensive immigration reform — not just because it’s the right thing to do, but because it would be good for our economy as well.

Taking these steps to get even more Americans into the labor force will help us build on the progress we have already made — and move toward stable and steady job creation, with rising real wages, that benefits workers and their families across the United States.