Labor Shortage a Growing Post-pandemic Concern

Credit: AZ Big Media

The National Federation of Independent Businesses has reported 44 percent of companies have job openings they cannot fill. The number is an all-time high for the survey.

A recent report from The Conference Board, entitled, “Labor Shortages Are Making a Comeback,” looked at the causes behind the tight labor market.

Among the report’s findings:

  • High demand and low supply in the post-pandemic labor market make recruiting difficult;
  • The sudden reopening of the economy, post-pandemic, has generated a high and immediate surge in labor demand, as opposed to the more moderate increases seen in traditional recoveries;
  • A surge in online-available work has left businesses struggling to find in-person, on-site staff, including in hospitality and construction;
  • Lingering pandemic fears are fueling hesitancy to return to the daily workforce, and
  • Baby Boomer retirements are reducing the available labor supply.

The shortage has yielded two significant benefits for workers, particularly in blue collar and service industries. First, the availability of jobs is described as “plentiful.” Secondly, as employers attempt to attract workers, the first quarter of 2021 saw wages increase at their fastest pace in two decades. (Source)

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