Have you noticed the long hold times on the phone with “We are experiencing unusually high call volumes right now” blaring in your ear or the lack of help in stores and restaurants? I recently made a trip to a mall and was shocked at the number of stores that were closed due to “lack of workers.”
Even Starbucks was closed with a big sign on the front door apologizing for the inconvenience.
This got me thinking, “Where are all the workers?”
I brought up this topic with several people to get some insight on this issue. With the pandemic pretty much over and travel back in full force, we really can’t blame this on COVID-19 anymore.
Most people are still blaming unemployment and stimulus payments on why people haven’t returned to work. But those stimulus payments are long gone, and unemployment is drying up.
According to the media, the number of Americans either working or looking for a job is still down from pre-pandemic levels. So where is everyone, and most importantly, how are they surviving financially?
I did some research on the subject and this is what I found.
Most people want flexibility.
The industry that has been hit the hardest is leisure and hospitality. Positions in restaurants and hotels like servers and bartenders are jobs that tend to be done in person.
This may not appeal to Americans who have experienced the benefits of working remotely and want to apply for jobs that offer this flexibility. Many people got the taste of what it is like to work from home, and they enjoyed that freedom.
More older workers than ever retired during the pandemic and many of those workers have not yet been replaced.
Most who left, did so because of the serious risk of COVID-19 infection and death for their age group. They were also concerned with the unforeseen future of the economy.
Although many retired in the early parts of the pandemic, there has been some uptick of people coming out of retirement and going back into the work force due to lack of employees.
They are being called back with enticing offers that are just too good to pass.
People just want more money.
Shortages may be caused by workers who are seeking out a better living wage. A $15 per hour minimum wage just isn’t enough for most families. When workers were let go due to the pandemic, they were able to collect unemployment as well as an additional $600 in benefits.
This large increase in benefit payments raised a concern that recipients would delay returning to work. On the contrary, it gave some folks a look into how much better the quality of life can be with extra income.
It has encouraged workers to look for better paying jobs and even encouraged some to go back to school to learn a new trade or better educate themselves. It's been shown that businesses paying higher wages haven't struggled as much with labor shortages and understaffing.
Which proves that the more a company is willing to compensate their employees, the greater the chance of keeping them.
Lack of access to childcare.
Even before the pandemic, a lack of access to high quality, affordable childcare was an issue.
The pandemic forced many childcare providers to close or scale down, and the recovery has not been swift. Many are still closed while others are unable to find good, reliable workers. In two parent homes, one parent may choose to stay home to care for the children while the other parent continues to work.
That option isn’t there for one parent households. Many must rely on family and friends to help, while others had to rely on state aid to support their families.
Start a new business.
Some employees either left work or stayed unemployed to open their own business. Over the last two years, nearly 10 million new business applications were filed. Thanks to more government support and remote technology, entrepreneurs were able to make what could have been just a dream, a reality.
With a lot of time on their hands and the need to make money again, many were able to do something they’ve been aspiring to do.
Contrary to what headlines may suggest, workers are not simply quitting their jobs to sit on the sidelines. Rather, they are switching jobs, perhaps even industries, for better pay, benefits, and working conditions and leaving low-quality jobs that impair their physical and mental health and do not pay enough to meet basic needs, build financial security, or save for the future.
There is a simple and clear solution to this “labor shortage.” Create better jobs! When employers create better jobs, with higher wages and benefits, they can jump start the economy by better enabling low and middle-income households to spend and stimulate the economy within their communities.
