In April 2022, CNBC’s “Make It” reported that, “The recovering pandemic economy has proven to be a job-seeker’s market, with nearly 48 million people quitting a job last year and 76 million taking a new one. Still, the labor market currently has 11 million openings, according to recent Labor Statistics data, and roughly two jobs for every person looking for one.”
According to a CNBC headline in March 2022, there were a record five million more job openings than unemployed people in the United States. In the article at CNBC.com, they also refer to a report from the U.S. Bureau of Labor Statistics revealing that an increasing number of Americans quit their jobs in February, while the gap between available positions and the unemployed grew even wider.
Toward the end of last year, Pewtrusts reported that the labor shortage meant higher wages and increased bargaining power for workers. When they interviewed RF Buche, owner of a 116-year-old family chain of fast-food restaurants and convenience stores, he said, “I’m more worried about burnout than anything else, people working extra shifts. It’s as bad as I’ve ever seen, and I’ve been in this business all my life.” Buche has been doing his best to fill shifts, but has had to cut store hours due to the lack of staff.
Why are more workers not being hired?
In Numbernomics’ May notes on job openings, they explained that, “It could be that the available workers do not have the skills required for the jobs that are available. Some others may have chosen to become gig workers or go into business for themselves. Or, perhaps, between their unemployment benefits, generous child welfare payments and rent relief, that some of those unemployed workers are choosing not to work.”
In December 2021, Reuters reported that the surge in job openings was led by the accommodation and food services industry, where vacancies increased by 254,000 jobs. When interviewing Jennifer Lee, a senior economist at BMO Capital Markets, she said, “Under normal circumstances, a near record number of job openings would be something worth celebrating. But no employer is in a celebratory mood. It is difficult to fill orders or meet customer demands if there are not enough people to do the actual work.”
Earlier, in August 2021, Vox’s Recode shared that the Bureau of Labor Statistics reported nearly 1.7 million open jobs in the leisure and hospitality industry. Over the last two years of the pandemic many workers began to revisit their priorities, careers, work/life balance, time with family, etc. Perhaps they are not returning to their jobs because, once they were laid off, some of them chose to change careers or retire. Or maybe they decided to pursue a job with better benefits and predictable schedules.
Bruce Tracey, a professor of human resource management at Cornell and editor of Cornell Hospitality Quarterly said, “The mindset is changing. I speak with operational managers and leaders all the time, and many of them are trying to express how much gratitude they can muster to anybody who’s willing to show up.” This expression could come in the form of better wages, benefits and scheduling.
Paul McDonald, senior executive director for Robert Half said, “There’s ‘no question’ throwing exceptional perks into the mix is helping companies close their time to hire.” For those who are currently seeking jobs, this could mean they have more bargaining power than ever before.