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Tags: labor | unemployment | covid-19 | pandemic | economy

Report: Labor Shortage Biggest US Economy Problem

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By    |   Saturday, 25 December 2021 11:21 AM EST

As the nation tries to claw its way out of the COVID-19 pandemic, the economy, while growing thanks to an increase of demand for products and services, is still facing the challenge of not enough workers.

According to the Bureau of Labor Statistics, the economy is recovering from the impact of pandemic lockdowns but is seeing a higher number of workers choosing to not reenter the labor force.

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."

These older workers are concerned about taking open jobs in the service or retail industry due to fears about being exposed to COVID while being in a higher risk group for severe illness and death.

In the meantime, they are struggling financially, and falling behind, according to the report.

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

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Newsfront
As the nation tries to claw its way out of the COVID-19 pandemic, the economy, while growing thanks to an increase of demand for products and services, is still facing the challenge of not enough workers.
labor, unemployment, covid-19, pandemic, economy
424
2021-21-25
Saturday, 25 December 2021 11:21 AM
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