A second implication is that non-monetary policies specifically designed to stimulate the demand for workers (such as government subsidies for hiring) can offset some of the employment loss due to the labor demand shocks, but only if accompanied by monetary easing.
That is, monetary and non-monetary policy must work in concert to reduce the impact of a decline in labor demand; neither can do it alone. Returning to the question posed at the beginning, this model suggests that the Federal Reserve is performing about as well as it can on both mandates.