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Donnelly Questions Fed Chair Powell on How Opioid Epidemic is Impacting Workforce Participation

Last updated on Wednesday, July 18, 2018

(WASHINGTON, D.C.) - U.S. Senator Joe Donnelly, today at a Banking Committee hearing, questioned the Chairman of the Federal Reserve Jay Powell about the impact of the opioid abuse epidemic on workforce participation and the economy.

This is an issue that has long concerned Donnelly as the opioid public health crisis continues to harm Hoosier communities. Last week, Donnelly and Senators Collins (R-ME) and Casey (D-PA) requested that the Government Accountability Office (GAO) examine the relationship between labor force participation rates and substance use, and review state and federal policies that may affect this trend. In 2017, Donnelly questioned then-Federal Reserve Chair Janet Yellen about the impact of opioid abuse on workforce participation.

In recent years, the labor force participation rate among prime-age workers has declined, due in part to prescription drug abuse, according to both Yellen and Powell.

Donnelly said, "Let me also ask you about opioids, which you mentioned, and workforce participation. My state has been deeply impacted by the opioid crisis. Last summer, during one of her final appearances before Congress, I spoke with former Chair Janet Yellen about the opioid epidemic and its connection to not just health outcomes, but also economic and employment outcomes. The impact of opioids on the labor participation rate, which has declined from 66% to 63% over the last decade. She agreed that there was a connection and noted that 'surveys suggest that many prime-age individuals who are not actively participating in the labor market are involved in prescription drug use.'... What do you see is the impact of the opioid epidemic on our workforce participation and, in general, the economy?"

Powell said, "You know, it's a terrible human tragedy for many communities, certainly for the individuals and their families involved. I think, from economic standpoint some high percentage of the prime age people who are not in the labor force, particularly prime age males who are not in the labor force are taking painkillers of some kind. I think the number that Alan Krueger...came up with is 44% of them. So it's a big number, it's having a terrible human toll on our communities, and also it matters a lot for labor participation and economic activity in our country."

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