UNEMPLOYMENT RATES SIGNIFICANTLY INCREASE TO RECORD BREAKING 4.4 MILLION
From August 2021 to September 2021, a record-breaking number of people have quit their jobs. According to the reports released by the BLS (Bureau of Labour Statistics), the number has increased to 4.4 million. Although the post-pandemic era seemed promising due to the wide availability of vaccines, it turned out to be the exact opposite of the economists’ expectations.
About 892,000 workers have resigned from food and accommodation jobs. The healthcare industry also lost 534,000 workers in America. The rate of voluntary quitting increased to 40% in August 2021 compared to the number that quit in August 2020.
American workers are burned out, bored, tired, and fed up. The shortage of laborers is causing the labor market to become a tight market. It empowers workers, but wages can hardly cover the increased costs of living. Also, people are in fear of the next COVID variant.
Impact on Perks for the Workforce
Even the unemployment insurance expansion failed to keep the workforce in jobs. However, according to economist Anthony Klotz, this might prove to be the silver lining for workers as employers will be forced to increase salaries and benefits. Also, the flexibility of working hours is being used by employers to attract workers. Post pandemic, the workforce looks for more flexible working hours.
Workers are equipped with more bargaining tools than they have ever had, enabling them to leave jobs with unpleasant or unwanted circumstances. Every ten job openings have seven unemployed workers. These statistics are a record low and facilitate the working class to have the upper hand and choose their work environment.
The largest gap between job openings and the available workforce is in the health industry. Also, the in-house workshop where workers are required to work closely and have the danger of contracting COVID-19 has been affected gravely.
Impact on Tight Labour Market on the Holidays
As businesses strive to staff up for the holidays, they introduce hiring bonuses, benefits, assistance, and other perks that they do not usually give to low-scale workers. They might not fulfill their demands due to a lack of willingness in the workforce to get tied down to a job. This can cause delays and damages to businesses, especially in the holiday season. Employers are being forced to expand their wage capacities.
Will Conditions Improve?
Incentives and wage growth might encourage the workforce to reenter the labor market. However, it’s likely work conditions will remain this way for quite a while. Working-class should take this opportunity to demand their worth and get ahead in the job market.
