Laffer Study: Widespread Adoption of Digital Credentialing Would Lead to $437.6 Billion in Annual Economic Benefits
Laffer Associates, the economic research firm founded by renowned economist Dr. Arthur B. Laffer, issued a report today detailing the vast economic benefits of digital solutions that can dramatically shorten periods of worker unemployment, particularly in the COVID-19 economic recovery.
Accounting for the labor needs in a job market recovering from the COVID-19 pandemic, the Laffer report estimates that full implementation of a digital instant-placement program would benefit the U.S. economy to the tune of $437.6 billion per year.
"America faces a crossroads, and there's one sure way to speed up economic recovery - by compressing the amount of time it takes to get a job and creating a more efficient labor market," Said Dr. Laffer. "The sooner we can get the 40 million unemployed Americans back to work, the sooner they'll be gainfully employed, off government assistance and back to contributing as taxpayers-a win, win, win. Companies like Merit are ready to step in and make a meaningful difference in the coming economic recovery, having already established a robust verified identity platform. Government leaders at the federal, state, and municipal levels would be wise to employ their innovations."
Even during healthy economic periods, the hiring process costs employers an average of 42 days and $4,129 per hire. The COVID-19 pandemic and the ensuing economic downturn has brought increased urgency to reduce the time between a worker losing a job and starting a new employment opportunity - a period of time known as "frictional unemployment."
"The notion of interoperable learning records is taking hold across the country, and Merit is leading the way by building easy-to-deploy infrastructure that allows states to get people the credentials they need to quickly get to work," said Tomer Kagan, Merit's CEO. "Dr. Laffer and team have identified a half-trillion-dollar economic gap, and Merit is standing by ready to help states take swift action."
The report recommends policymakers at all levels of government adopt digital solutions such as interoperable learning records (ILRs), which contain digital records of a worker's credentials (such as educational background, employment history, training history, and certifications held). Employers can instantly verify prospective employees' merits - promoting efficiency and significantly reducing the amount of time it takes to fill employment vacancies.
"Companies like Merit are ready to step in and make a meaningful difference in the coming economic recovery, having already established a robust verified identity platform," Laffer added. "Government leaders at the federal, state, and municipal levels would be wise to employ their innovations."
About Laffer Associates
Laffer Associates is the culmination of a lifetime's worth of rigorous institutional and academic economic research by the firm's founder and chairman, Dr. Arthur B. Laffer. For over four decades, the Laffer Associates team has developed original works and proprietary models that analyze and forecast how economics affects the real world. Laffer Associates provides research and consulting services to a wide range of corporate and money management clients and plays an active role in educating and advising government policymakers about economics. The firm is based in Nashville, Tennessee.
Merit is the first universal verified identity ecosystem for government, businesses, and workers to operate with the efficiency, trust, and transparency that comes with having universal mobility. By letting everyone access, track, and organize their achievements in real time, Merit is bringing personal and professional skills verification into the digital age. Through a single, secure platform, Merit puts the power of trusted and verified credentials in the hands of professionals across the public and private sectors, supporting professional licensing, occupational regulation, workforce development, emergency services, recreation, and other digital credentialing applications. Find more information about how Merit is helping everyone shape their future at https://www.merits.com/.