Vaxx mandates hitting economy hard: Fed

The Federal Reserve in its latest report on the economy found that vaccination mandates are wreaking havoc on the economy.

In its latest Beige Book report the Fed said economic growth has been modest to moderate due to nationwide labor shortages and cited vaccine mandates as one of the factors contributing to the difficulty that employers are having finding workers.

“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,” the Fed said in its summary of overall national economic activity. 

“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.” 

About 3% of the US labor force, or 4.3 million workers, quit their jobs in August, a record high that goes in tandem with a little over 10.4 million job openings that same month.

“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,” the Fed said in its summary of overall national economic activity. 

Supply chain issues also contributed to the slowing economy.

The report also found “significantly elevated prices” across most districts, an increase fueled by rising demand for consumer goods and raw materials. Cost increases were widespread across industries and were largely driven by product scarcity and supply chain disruptions. Price pressures also stemmed from increased transportation and labor constraints, the Fed said, with the cost of steel, electronic components and freight rising rapidly.