Federal Reserve: Businesses Say Vaccine Mandates Are Hurting Employment

The Federal Reserve on Thursday said that businesses have reported COVID-19 vaccine mandates have hurt employment and are contributing to labor supply problems—even before President Joe Biden’s previously announced vaccine mandate for private businesses goes into effect.

While employment increased at a modest to moderate rate in recent weeks, the Fed’s so-called Beige Book noted that the U.S. economy has been “dampened by a low supply of workers,” partially due to vaccine mandates.

“Transportation and technology firms saw particularly low labor supply, while many retail, hospitality, and manufacturing firms cut hours or production because they did not have enough workers,” its report summary said. “Firms reported high turnover, as workers left for other jobs or retired. Child-care issues and vaccine mandates were widely cited as contributing to the problem, along with COVID-related absences.”

Individual Fed banks said they have heard of employees quitting over mandates. While the Federal Reserve Bank of Philadelphia reported that few businesses lost employees over the mandates, the Federal Reserve Bank of Atlanta reported that companies were worried that implementing a vaccine requirement could cost them workers.

“Most employers shared that they would like to implement COVID-19 vaccine mandates but were concerned about losing employees,” the Atlanta Fed said in the report. “Worries about employee mental health, burnout, safety, and vaccine mandates impacting company culture were mentioned.” (Read more from “Federal Reserve: Businesses Say Vaccine Mandates Are Hurting Employment” HERE)

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