The current prevalence of part-time work and short workweeks may slow job creation early in the recovery period, as employers may prefer to convert workers from part-time to full-time status and to add overtime work before turning to new hires. In addition, difficulties in obtaining credit could hinder the expansion of small and medium-sized businesses and prevent the formation of new businesses.
But I also want to underline that both our central banks have always been committed to finding workable and fair solutions, and I am quite optimistic that at the end of the day, we – and our governments – will find such solutions.