Fed’s Harker says U.S. economy in good shape but employment is down significantly

(Reuters) – The U.S. economy overall is in good shape and rebounding rapidly from last year’s decline, but much improvement is needed in the labor market, Philadelphia Federal Reserve Bank President Patrick Harker said on Thursday.

U.S. economy growth “has come roaring back” and some metrics including consumption, housing, and manufacturing are now “extremely healthy,” Harker said.

“But even as GDP has almost entirely recouped its losses from last year, employment remains down significantly,” Harker said in remarks prepared for a virtual event as part of the Official Monetary and Financial Institutions Forum.

While some workers are seeing their incomes rise, there are still nearly 7.6 million fewer people working than before the pandemic, he said.

Reporting by Jonnelle Marte

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