WASHINGTON (Reuters) - St. Louis Federal Reserve President James Bullard on Thursday said structural unemployment in the United States is a significant problem that will take a long time to heal.
Bullard, answering audience questions after a presentation to the National Economists’ Club, said that the movement of workers to new industries after the bursting of the housing bubble is presenting a significant challenge for the recovery of labor markets.
“That structural component will take a long time to heal,” he said.
While housing has stabilized, Bullard said he does not expect it to be a sector that leads the recovery.
Reporting by David Lawder, Editing by Chizu Nomiyama