Fed Easing No Fix for Structural Problems

FRB Chair Ben Bernanke

Any action the Federal Reserve announces at its November policy meeting may not do much to help Timco Aviation Services hire 300 people. While a new round of asset purchases may help reduce cyclical joblessness, the result of weak demand in a battered economy, it may not have much effect on structural unemployment, losses caused by changes in the labor market. “What you have is a great workforce in the local area that have been working in textiles or furniture, but they’re not trained in aviation-specific skills,” said Kevin Carter, the Greensboro, North Carolina, company’s co-chief executive officer, who is struggling to fill positions that require qualifications such as an FAA airframe and power-plant certificate. Read more here:

Fed Easing No Fix for Structural Problems