I’m at a loss on this one. In the Wall Street Journal James Freeman reports:
Amazing as it may sound, the American worker shortage is getting even worse. For the second consecutive month, the number of small businesses reporting they could not find workers to fill open positions set a new record high. Given this historically tight labor market, it’s no surprise that the number of small firms raising compensation also hit a record high. That’s according to the latest monthly employment survey from the National Federation of Independent Business, due out later today.
“Fifty-one percent (seasonally adjusted) of all owners reported job openings they could not fill in the current period, up 1 point from August and a record high reading for the second consecutive month. The number of unfilled job openings far exceeds the 48-year historical average of 22 percent,†reports NFIB Chief Economist William Dunkelberg.
In some sectors the gap is more grievous than in others:
Some firms have had to reduce hours of operation and even close due to the inability to find staff. “Eighty percent of construction firms reported few or no qualified applicants (up 13 points). The shortage of workers has slowed the construction of new homes, and home prices have soared,†adds Mr. Dunkelberg.
They say they’re raising the compensation they’re offering.
What’s going on? I could offer some conjectures but it wouldn’t be much more than that.
Must be the UI payments. Oops, forgot that those are gone.
Steve
It’s a world-wide phenomenon. Part of the EU/UK natural gas crisis is due to a severe lack of truck drivers. Like the US, truck driving does not appeal in the least to young men, even a $60,000/per year plus benies. The workers in all of the trades are getting old.
The lockdowns seem to have done something rather permanent to workers. Our Masters certainly have gotten a taste of the pleasures of pushing people around.
State level benefits. I spoke with the manager at the local Starbucks a couple days ago. If a person comes in and applies, or just works a couple days, they can go get unemployment plus other benefits.
Also, little understood, people can get government assistance and then go to the black market with cash payment terms. Now, don’t misunderstand, these people all report that cash income religiously, what with all their concerns about the rich paying fair shares and such.
I have a hard time believing that state benefits are especially generous in South Carolina or a lot of other states. Besides which if actually true then people coudlhave done this all along for the past 30 years, but they didnt. Also, as pointed out this is not just a US problem. Also, the problem is not just with minimum wage jobs. You need a better explanation for why people arent taking $50k-$60k jobs.
Steve
Americans are not getting healthier, and long periods of inactivity make that worse.
https://www.jetpunk.com/users/quizmaster/charts/percent-of-americans-receiving-disability-over-time
I do think that the lockdowns accelerated a lot of retirements.
Lets also throw in a decline in the number of teenagers and young adults that usually held these jobs and the gig economy (Door Dash etc) siphoning off workers. Probable other causes too many positive drugs screens for marijuana, opting for college instead of work and supportive arrangements (couch surfing, Mom and Dad’s basement) that keep folks out of the work force.
It’s true that as more states legalize recreational marijuana, employers risk of negligence litigation and work comp costs due to bleary or actually stoned employees goes up.
Jobs that don’t require random drug tests are drying up.
But being a drug user is expensive, so property crimes rise as jobs for users are few and far between.
Back in the’70’s we had delivery drivers who showed up drunk for work every day and drank all day as well.
It was unbelievably casual, they didn’t even try to hide it.
Won’t fly today.
We need more immigrants to do the jobs Americans are too stoned to do.🤪