US Commerce Secretary on unemployment checks, women in the work force and inflation

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• Amna Nawaz:

  There are good signs for the economic recovery today. Jobless claims are at their lowest levels since March of last year. Hiring is on the rise. And with that come more questions about the need for special pandemic unemployment benefits.

  Many Republican governors across the country are cutting those federal benefits, which provide another $300 a week for recipients.

  We are going to look at this now with Gina Raimondo. She's the secretary of commerce. And she joins us now.

  Madam Secretary, welcome to the "NewsHour." And thank you for making the time.

  Despite those numbers, we should point out there are a number of firms and businesses across the country who say they cannot fill jobs. We hear stories from a restaurant owner who says he's about 30 short. He has to turn business away, another business owner who is actively soliciting referrals from customers.

  What can you say the administration is doing to help those business owners?

• Sec. Gina Raimondo:

  Thank you.

  And we hear those stories as well. And we have an open ear to them. It seems to us, from listening to people and looking at the data, that the biggest reason or one of the biggest reasons for this is that either people are still afraid to go back to work, or it's hard to find childcare, or their kids' school is still closed.

  So, to that end, what we are doing, what the administration is doing is a terrific job vaccinating as many people as quickly as possible. And the president's rescue package put forth a great deal of money for schools, so they can reopen safely, as well as childcare, to give parents a hand to pay for childcare and help childcare centers reopen.

  The pandemic unemployment insurance was a lifeline for people when they needed it most. And now what we need to do is just really make these investments in order to help folks be able to get back to work safely.

• Amna Nawaz:

  As we mentioned, there are a number of governors taking the steps to change the unemployment benefit rules, in the hopes that it will speed along and accelerate the process of people going back to work.

  If the data starts to show that's what's happening, that cutting those benefits means people are going back to work faster, is that an argument to roll back those additional federal benefits?

• Gina Raimondo:

  No, I hesitate to say that, because that is one factor and one data point.

  As we were just saying, more people are getting vaccinated, more schools are being opened, more childcare centers are being opened. So, that, I think, is probably an even bigger impact. You also see, in many states now, governors are coming out providing bonuses to people who go back to work.

  Connecticut, I just saw Colorado, they're saying, if you go back to work, get a job, work for a month or two, the state will give you a bonus. I think that's a terrific idea, because the truth is, it's more expensive to go back to work now, especially for childcare.

  I think we just — I don't think we should jump to the conclusion, based upon anecdotes, that it's the unemployment insurance — pandemic unemployment insurance that is leading to folks struggling to get employees.

• Amna Nawaz:

  There has been, we should note, a mass exodus of women in particular from the work force. Female participation is at the lowest rate in over 30 years.

  Some people project that those numbers won't rebound until 2024. So, what specific steps is the administration taking to help women get back to work?

• Gina Raimondo:

  This is a problem we all need to be focused on.

  And I really hope — shame on us if it takes us until 2024 to fix this. Number one is childcare, and the president's rescue package and his jobs package includes huge investments in childcare, in providing universal public pre-K for every 3- and 4-year-old, providing tax credits for folks who have kids.

  I cannot overestimate enough how important that is for women to be able to get back into the work force. Secondly, schools. Jobs package and rescue package includes a great deal of money so schools can reopen safely — emphasis on safely — so people feel comfortable sending their kids back to school.

  The other thing, the president is calling for a $400 billion investment in the care economy. Women will not be able to go back into the work force and be productive if they can't get reliable, high-quality care for their elderly loved ones or disabled loved ones.

  And so, like it or not, the fact is, childcare and care of loved ones falls disproportionately on women. And so we have to shore up our caregiving systems in America if we're going to unleash the full productivity of women, which is half of our work force.

• Amna Nawaz:

  You mentioned the president's plans.

  You have been meeting with Senate Republicans this week about the Americans Jobs Plan. I think President Biden said he wants to see progress on that by Memorial Day, which is only 10 days away. We haven't yet seen many new details or top-line costs on that.

  When should we expect to see those?

• Gina Raimondo:

  We are hard at work. The president has been very clear with us, his team, to stay at the table, negotiate, operate in good faith, try to find common ground.

  And so that is what we are doing. We met again just two days ago. I expect we will be meeting again maybe tomorrow or over the weekend. We're just — we're going to stay at it, and see what we can come up with.

• Amna Nawaz:

  Do you expect progress by Memorial Day?

• Gina Raimondo:

  I hope so. I will leave it at that.

• Amna Nawaz:

  I want to ask you about another part of the economy.

  Consumers across the country have seen a spike in costs and prices of some goods. The administration has said, the Federal Reserve has said that this is temporary. But last week's consumer price hike was one of the biggest we have seen in years.

  So what if you're wrong? Could you possibly be missing some of the early warning signs of a real inflation?

• Gina Raimondo:

  OK, so, first of all, of course, it's always possible to be wrong, but we have tools to deal with inflation. The Fed has plenty of tools to deal with inflation, as they have used effectively for a long time.

  But, secondly, as you dig deeper into the price index, it really is the case that a few areas are seeing big increases in prices, which is driving the whole index. And those increases are driven primarily because of what we saw through COVID.

  So, for example, rental car prices are through the roof. Well, we had a semiconductor shortage, which is stalling the production of cars. So, not surprisingly, everybody is buying rental — excuse me — a used car. And, as a result, used car prices are way up.

  Lumber. Lumber prices are through the roof. Well, you're seeing a massive surge in demand for housing due to COVID, and, not surprisingly, the lumber supply can't keep up.

  So, we monitor this constantly. There are tools to deal with inflation. But, at the moment, there isn't a lot of data to suggest widespread inflation is a problem.

• Amna Nawaz:

  Very briefly, Madam Secretary, you mentioned the semiconductor shortage.

  We know President Biden has put forward $50 billion to try to shore up American production. But that will still take years to try to meet what the demand is. What kind of additional disruption do you think tech and the auto industry should expect?

• Gina Raimondo:

  I just got off of a meeting where I was talking to a dozen or more semiconductor companies.

  We're looking at everything available to us right now, doing everything possible, become more efficient, become more transparent about supply and demand.

  But I cannot emphasize enough how important it is for Congress to pass the president's proposal immediately, because this is a long-term problem. To answer your question, this is here to stay for years, and we have — we're at the beginning of a journey to try to fix it for the long haul.

• Amna Nawaz:

  That's the U.S. secretary of commerce, Gina Raimondo, joining us tonight.

  Thank you for your time, Madam Secretary.