U.S. Chamber of Commerce (07/12/23) Ferguson, Stephanie

The latest data shows the U.S. has 9.8 million job openings but only 5.9 million unemployed workers, according to an analysis by the U.S. Chamber of Commerce. Employers added an unprecedented 4.5 million jobs in 2022. However, millions of Americans have been leaving the labor force since before the pandemic. The labor force participation rate currently is 62.6%, down from 63.4% in February 2020.

Factors contributing to the labor shortage include early retirement, net international migration hitting its lowest level in decades, lack of access to childcare, new business starts, and an increase in savings. A U.S. Chamber survey of workers who lost jobs during the pandemic also revealed concern about Covid-19 at work, low pay, and an increase in focus on acquiring new skills and education. There also has been a “Great Reshuffle” among workers, although the hiring rate has outpaced the quit rate since November 2020.

This article originally appeared on uschamber.com. Use this link to see the full article: Understanding America’s Labor Shortage