Labor shortage: Where did all the workers go?

A record 4.3 million people quit their jobs in August. A local human resource expert compared what's happening now to the labor shortage during World War II.

The U.S. unemployment rate hit a record high in April 2020 at 14.8%. It has since dropped to 4.6% in October 2021, according to the U.S. Department of Labor.

These numbers tell a story of improvement, but the headlines and what you've likely felt as a consumer are a different story. Inflation is at a 30-year high, a record number of Americans are leaving their jobs and supply chain issues have impacted nearly every corner of our economy.

Webster University human resource professor Julie Palmer talks about this a lot with her students. She said the pandemic gave people a lot of time to think.

“I think what people thought a lot about during COVID is the work-life balance aspect, which is do I want to work 60 hours a week? Do I want to commute an hour and back? That's an hour out of their life in the morning," Palmer explained.

For millions of Americans, the answer to those questions is no.

According to the turnover summary from the U.S Bureau of Labor statistics, a record 4.3 million people quit their jobs in August 2021. It happened again in September, going up to 4.4 million.

Palmer believes the mass exodus is coming from a group of people with wiggle room in their finances. These are people, who she says, are able to spend less, so they can work less. She said it will be interesting to see how long people can sustain this lifestyle. Many are starting their own businesses or looking for work that aligns with their passions and personal life.

“I think it came over time when people were spending more time with their family or were having to make sacrifices and now, they're trying to figure out whether they want to continue to make those sacrifices or if they can obtain a better job or have a higher quality of life," she explained.
Americans are certainly feeling the ripple effects of the labor shortages, from the supply chain issues to inflation that's hit its highest level in decades.

“When you don't have the truck drivers and we don’t have the people that are working in construction, then economics says prices are going to go up," Palmer explained.
Gas prices are up 50%. Used cars and trucks are up 26%. Beef prices are up 20%.

“I don't think we’re in a state of panic yet, but unless something turns, I think we may be. I think if companies offer better wages and better benefits we could see something turn,” Palmer said.

She compared what's happening now to the labor shortage during World War II, when millions of women joined the workforce to stabilize the economy. Now, places are trying to dip into a younger generation by lowering the age requirement to fill positions. But Palmer said there simply aren't enough teenagers to fill the void.

[FudFst]

Strange how companies that pay a decent wage don't have a labor shortage.

[xftbllplyr]

Workers are here. Pay them they will come. Stop saying that people just don’t want to work

[hectortoledo]

Its not a labor shortage nobody wants to work for low wages anymore

[boxloadernat]

My rent is doubled during last 5 years. Do salaries follow that part? - No.

[anthonymauceri]

Perhaps people are just sick & tired of having to work 2 -3 jobs to earn a living wage while companies become richer off their backs. 🤔

[logansnow]

Companies with good jobs that pay well with benefits don't seem to have a labor shortage

[thedarkknight]

I'm in a union, starting wage is 25$ / hour. After 4 years, it's 29.95 + world class benefits. After 6 years it's 35.50. Join a union guys, a good strong union. It's awesome not struggling and having money

[clarvebiker]

"We devalued all the traditional blue-collar male jobs and now they don't want to work those jobs anymore."

[number]

Best time to quit and go on a strike since the holidays are coming up soon.

[kdeas]

remember when these clowns blamed unemployment benefits for the better part of a year?

[CBourn]

The more you make, the higher the cost of living and playing goes.
This system doesn't work anymore. People are tired of chasing "The Golden Carrot" on a treadmill that's getting faster and faster as technology not machines and can't keep up with them..

[LoniLoni]

People who worked long hours or two job got really good sleep during the pandemic and realized they were probably gonna get Bell’s palsy if they continued the way they were

[johndoe-wvnu]

CDL-A and RN. I'm also unemployed. Throwing more freight on my truck is a pay cut. Adding more patients to my assignment is a pay cut. Nope, try again.

[shawns]

This is not accurate. Many are putting in applications by the hundreds and getting rejected. To not hire and then call people lazy is ridiculous.

[talltimberswoodshop]

Let's see...Abortion declared legal in 1973...About 1.25 million babies killed each year since then...That's about (2022-1973=~50; 50*1, 250, 000=62, 500, 000) ... That's about 62 million people that we have killed since then. So why exactly do we have a labor shortage???

[community]

Lounging around at home collecting medicaid and food stamps is not the long term answer either. Get out there, get your feet wet, and remember what people did during the great depression and W W 2 - they did their part, manned up, and did what they were supposed to do. It makes me sick to see all the young people around me at home like I am - I am a 73 year old retiree and I put in 45 years in two banks and a hospital. Jesus god if I had been home at 25 or 30 I would've lost my mind. The boredom must be incredible.

[garyzgary]

Lot's of distracting word salad but you never answered the question you posed.

[hantu]

What problem how is it a problem when unemployment rate drop to 1/3 despite great resignation where they're jumping to better wages and quality of life

[marksasoldier]

Employers are feeling thier own rot for once.

[amelianichols]

Don't forget the mandate for the jab. Lots of people quitting over that too!