In a growing economy, jobs are created and destroyed as the businesses behind those jobs are created and destroyed. Besides high levels of unemployment, today's workforce has seen about four million less than the historical precedence of about 18 million jobs created and destroyed quarterly, Lockhart said.
Productivity has also lagged, and Lockhard predicted this trend would reverse "as demand kicks into higher gear and as businesses expand production somewhat faster than they expand their payrolls."
Finally, the healthy "entrepreneurial ecosystem" requires new companies that grow rapidly -- or fail. Lockhart called them a "key factor" in the job creation area but expressed concern the "general atmosphere of uncertainty" hasn't encouraged entrepreneurs to take risks.
He also offered tactics that policy makers, including the central bank, can take to get the "mojo" back.