Pub. 1 2022 Issue 3

Understanding America’s Labor Shortage By Stephanie Ferguson, Director, Global Employment Policy & Special Initiatives, U.S. Chamber of Commerce In 2021, businesses added an unprecedented 3.8 million jobs. But at the same time, workforce participation remains below pre-pandemic levels, meaning we have 3.4 million fewer Americans working today compared to February 2020. We hear every day from our member companies – of every size and industry, across nearly every state – how they’re facing unprecedented challenges trying to find enough workers to fill open jobs. Right now, the latest data shows we have over 10 million job openings in the U.S. – but only around six million unemployed workers. We have a lot of jobs but not enough workers to fill them. If every unemployed person in the country found a job, we would still have approximately five million open jobs. The U.S. Chamber is capturing the trends on job openings, labor force participation, quit rates, and more for a quick understanding of the state of the workforce in our America Works Data Center. Read on for an analysis of the state of the workforce on the national level. How did this happen? At the height of the pandemic, more than 120,000 businesses temporarily closed, and more than 30 million U.S. workers were unemployed. Since then, job openings have steadily increased since January 2020, while unemployment has slowly declined. Understanding the Gap Currently, the labor force participation rate is 62.1%, down from 63.3% in February 2020. Able workers are being overlooked or sitting on the sidelines. But there’s not just one reason workers are sitting out; several factors have come together to cause the ongoing shortage. The U.S. Chamber surveyed unemployed workers who lost their jobs during the pandemic on what keeps them from returning to work. Nearly one in three Overall, in 2021, employers added an unprecedented 3.8 million jobs. But at the same time, millions of Americans left the labor force before the pandemic. In fact, more than three million fewer Americans are participating in the labor force today compared to February of 2020. 26 Montana Funeral Directors Association

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