Tom Barkin, Essay: Learning from Our Community

Consumer Demand

“Take consumer demand. Overall, it looks solid, but conversations with retailers in our district have helped us understand the nuance. Lower-price retailers tell us their customers have pulled back amid inflation and recession fears. As lower-income consumers are squeezed on the essentials, say at the pump and the grocery store, their demand for items like washing machines and TVs has dropped. In contrast, higher-priced retailers are still seeing wealthier consumers spend.”

Jobs

“Why has the labor market stayed tight — even as rates have risen, sentiment has fallen and the economy has slowed? On the demand side, employers tell us they are reluctant to let go of workers they fought for months to hire. They don’t want to lose them unless absolutely necessary.”

“On the supply side, we hear about workers facing new challenges that keep them from work even as pandemic-related barriers fade … My colleagues and I learned that the escalating costs of gas, housing and child care have raised the barriers to working, even as wages have been rising. This may be particularly problematic in rural areas given the distances required to drive to work and the challenges providing basic services in less dense areas.”