Fed's Lockhart: Productivity growth critical

BILOXI, Mississippi (Reuters) - Atlanta Federal Reserve Bank President Dennis Lockhart said on Saturday that higher productivity can help retain high-end manufacturing jobs in the United States and even reverse some of the forces of outsourcing.

In a panel discussion on the regional economy at the Southern Governors' Association annual meeting, Lockhart said some companies had found that producing quality goods was not always compatible with seeking out the lowest cost of labor.

St. Louis Fed President William Poole said governments and businesses needed to help with a transition that shifts Americans to higher-skilled jobs.

Dallas Fed President Richard Fisher echoed earlier comments from Poole on the state of the job market, terming the United States "a fully employed economy."

Poole is a voting member of the Federal Open Market Committee in 2007. Fisher will vote in 2008 and Lockhart in 2009.