(33%) women indicated that the need to be home and care for children or other family members has made the return to work difficult or impossible. More than a quarter (28%) of men indicated their industry was still suffering, and not enough good jobs were not available to return to work. In addition to the factors outlined below, the survey also revealed some unemployed workers are still concerned about COVID-19 at work, indicate pay is too low, or are more focused on acquiring new skills and education before re-entering the job market. Factors Contributing to the Labor Shortage An increase in savings Enhanced unemployment benefits, stimulus checks, and inability to go out and spend money during the lockdown contributed to Americans collectively adding $4 trillion to their savings accounts since early 2020. The extra few hundred dollars a week from enhanced unemployment benefits (ended September 2021) specifically led to 68% of claimants earning more on unemployment than they did while working. Early retirements As of October 2021, the pandemic drove more than three million adults into early retirement. In all, the number of adults 55 and older being detached from the labor force due to retirement grew from 48.1% in Q3 of 2019 to 50.3% in Q3 2021. Lack of access to childcare Even before the pandemic, a lack of access to highquality, affordable childcare was an issue. Research from the U.S. Chamber of Commerce Foundation found that due to breakdowns in the childcare system, the states surveyed (Alaska, Arkansas, Arizona, Missouri, and Texas) missed an estimated average of $2.7 billion annually for their economies. A recent report from the U.S. Chamber of Commerce Foundation and The Education Trust shows that the pandemic created a vicious cycle for the industry; to return to work, workers need reliable childcare, but providers are facing immense challenges themselves. The pandemic forced many childcare providers to close or scale down: between February and April 2020, the industry lost 370,600 jobs – 95% of which were held by women. Unfortunately, the recovery has not been swift; as late as September 2021, childcare industry employment remained 10% lower than prepandemic levels. The reasons in the above graph help illuminate the current labor shortage landscape, but the examples are non-exhaustive. ■ Understanding why workers are missing from unfilled jobs is only half of the equation. The next step in addressing the labor shortage – implementing solutions that attract and retain new workers – is underway. Learn how the U.S. Chamber is driving solutions through the America Works initiative at https://www.uschamber.com/major-initiative/ america-works-initiative. Additionally, women are participating in the labor force at the lowest rates since the 1970s. In the spring of 2020, 3.5 million mothers left their jobs, driving the labor force participation rate for working moms from around 70% to 55%. This number is improving – but it has not fully rebounded. New business starts In the spirit of entrepreneurship, some employees either left work or stayed unemployed to open their own businesses. Over the last two years, nearly 10 million new business applications were filed, and in 2020 alone, more than four million new businesses were started. The Great Reshuffle Meanwhile, there has been a "Great Reshuffle" among workers. “The Great Resignation” worked its way into our vocabulary as the shift of our labor force started to become apparent – and the hashtag #quittok even went viral as social media users posted about quitting their jobs in search of more free time or better opportunities. A full 4.4 million people quit their jobs in May 2022, but hiring has outpaced quits since November 2020 (hovering around 4.4%). Pub. 1 Issue 3, 2022 27
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