LABOR SHORTAGE BIGGEST ISSUE FACING US ECONOMY: REPORT

Sun 26 December 2021:

As the country struggles to recover from the COVID-19 pandemic, the economy, while expanding due to increased demand for goods and services, is still grappling with a labor shortage.

The economy is rebounding from the effects of pandemic lockdowns, according to the Bureau of Labor Statistics, although a rising percentage of workers are choosing not to reenter the workforce.

In April 2020, the number of people unemployed for 15 weeks or more was just 1.1% before the pandemic caused massive layoffs and lockdowns, reaching a high of 5.1% in August of that year.

While the number has dropped to 1.1% in November, it still represents millions of people who are considered “long-term” unemployed, despite the large number of open jobs.

According to the agency, 5.8 million people unemployed in November, want to return to the labor force, but might not be able to find a similar job to the one they left.

Economists say the disparity between the high number of available jobs and higher than expected number of people still out of the workforce are due to a number of reasons, including older workers retiring early, and workers that are either afraid of contracting COVID at work, or finding the childcare and other logistical support they need to hold a job, CNN reported Saturday.

“Prime” workers, ages 25-54 are recovering jobs at a much steeper rate than those age 55 and older, with the younger workers showing an 82.1% workforce participation rate, compared to just 38.4% of those over 55, according to the report.

Many older workers are voluntarily exiting the workforce thanks to healthy stock market and real estate gains that allow them to retire financially, the report continued.

Others, however, like California resident Linda Plaza, 64, told CNN they are having a hard time finding work like what they did before the pandemic caused them to lose their jobs.

“I was planning to retire at 65,” she told CNN Business, adding it is near impossible to find another job like her old one: “And if they were going to hire anyone, they will hire someone younger with more education.”

Due to concerns about being exposed to COVID while being in a greater risk category for severe disease and mortality, these older workers are hesitant to take available employment in the service or retail industries.

Meanwhile, according to the article, they are having financial difficulties and are falling behind.

“I want people to know that things are not OK,” Plaza told CNN.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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