Generous unemployment benefits and savings accumulated during the “pandemic” have contributed to the demand for better jobs

Labor shortage hinders the recovery of the US economy

Economists have argued that the abundance of open jobs motivates some to stick to a better job offer.

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Autumn was supposed to mark the beginning of the end of the labor shortage crisis in the United States, which is hampering the country's economic recovery, as expanded government unemployment benefits ended, and schools reopened, which must be accompanied by a flood of workers willing to enter the labor market, according to The opinion of economists and business owners, but that did not happen, as the crisis of labor shortage hinders the recovery of the American economy.

And the American newspaper “New York Times” indicated that the workforce shrank last September, and the number of workers decreased by about five million workers, compared to levels before the “pandemic”, noting that the slow return of workers caused problems facing the administration of US President Joe Biden, which It was counting on a strong economic recovery to give impetus to its political agenda.

Although conservatives blamed generous government unemployment benefits for keeping people at home, progressives said companies could find workers if they paid more, and that the labor shortage was not limited to low-wage industries.

Economists believe that the health crisis makes work difficult or dangerous for some people, while the savings that people have accumulated during the pandemic have made it easier for them to refuse jobs they do not want.

Surveys suggest that the pandemic has also prompted many to rethink their priorities, while the glut of open jobs - more than 10 million in August - are motivating some to stick with a better job offer.

The result is that for the first time in decades, workers have leverage on the income ladder and are using it to demand not just higher wages, but flexible hours, more generous benefits and better working conditions. A record 4.3 million people quit their jobs last August, to take on better-paying jobs, according to the New York Times.

“Right now, it seems that workers have the upper hand,” said Betsy Stevenson, an economist at the University of Michigan and a former adviser to former US President Barack Obama, noting that Americans have saved trillions of dollars since the pandemic began.

He explained that a large part of that wealth is concentrated among high-income earners, who kept their jobs, reduced spending on dining and vacations, and benefited from the stock market's rise.

Stevenson added that many Americans on lower incomes, too, were able to avoid spending money thanks to government assistance that included cash and food assistance, forgiving mortgages and student loans and a moratorium on home evictions.

selectivity of functions

Economists have said that additional savings alone do not necessarily remove people from the labor market, but they make people more selective about the jobs they occupy, warning that withdrawal from the labor force could have long-term consequences for economic growth.

In the short term, many economists believe that more people in America will return to work as pandemic issues recede and their savings run out. And the best features.

Despite the labor shortage, some companies were able to handle fewer workers.

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