Companies can’t find workers even with high unemployment rates

Some businesses struggling to recover from the pandemic are being forced to close, not because of regulatory restrictions, but because they are understaffed.

In the aftermath of a pandemic and closures, the United States finds itself in a difficult situation, with unemployment still significantly higher than it was before the virus. Businesses are unable to hire enough people.

The number of people leaving their jobs, unemployed people who left or voluntarily left their previous job and started looking for a new job rose from 164,000 to 942,000 in June. The number of people on temporary layoff remained almost stable during the month at 1.8 million.

The unemployment rate is around 6%, which translates to about 9.7 million Americans actively looking for work. While employment fell from 18,000 to 151.60 million people. With the high vaccination rate and continued government support, the labor market has shown signs of recovery, aided by a wider economic reopening. Despite this, many people do not apply for the service industry, which is in high demand. But those looking for a job can find out more about the organizations that interest them by visiting

Is the increase in benefits the cause of the high unemployment rate?

Businesses across the country have lamented the difficulty in filling vacancies. Reporting continued labor shortages due to increased benefits, fears of contracting COVID-19 and difficulty finding child care.

The assumption is that weekly unemployment benefits of $ 300 from the federal government keep individuals at home rather than working at cash registers or in fast food restaurants.

Search “Job search, job posting and unemployment insurance during the COVID-19 crisis” found that for every 10% increase in a person’s unemployment benefits, there was a 3% decrease in the number of jobs sought.

Some governors have chosen to end the enhanced benefits backed by the federal government, saying the benefits deter people from working and in doing so, labor shortages will be alleviated in states that do.

Fear of getting sick

Another factor affecting the unemployment rate is the fear of getting sick. According to a survey by the United States Census Bureau in the second half of March, about 4.2 million people are not working because they are afraid of contracting or spreading the coronavirus. The exact impact of fear on the job market is unknown as it is not monitored by the government.

However, there is some evidence to support this theory: There appears to be a link between vaccinations and an increase in people’s employment rates. A 10% increase in the number of people fully immunized was accompanied by a 1.1% increase in employment. As a result, those who have been vaccinated may feel more comfortable at work.

Childcare challenges

There are a number of possible explanations for the high unemployment rates, one of which is the difficulties faced by working parents due to school closures and insufficient child care facilities.

Due to the closure of schools and daycares, parents are now responsible for increased childcare obligations, which fall disproportionately on women. 32% of U.S. employees have children under fourteen and 9.4% have children under six.

According to the Census Household Pulse survey, this is still an important factor for people who are not working. According to surveys conducted at the end of March, 6.3 million people were unable to work due to the need to care for a child who was not enrolled in a school or daycare, and 2.1 million were unable to work. cared for an elderly person.

More to that …

However, some believe there is more to the story. This problem existed before the great pandemic. Employers have often complained about the difficulties in hiring qualified staff, even at a time when there was no major shortage.

Some say the drastic change in labor market circumstances over the past decade is the result of a scenario in which several long-term trends collided at the same time.

The expansion of the working-age population has slowed to a halt. Never before has there been such a high number of retirees and a near zero increase in the working-age population. Additionally, as growing numbers of young people enroll in four-year colleges, the number of working-age people with bachelor’s degrees continues to grow at a steady rate of around 2% each year.

Another cause could be a significant increase in the number of people with disabilities. One of the main reasons for the relatively unsatisfactory employment rates is the substantial growth in the number of people not in the labor force due to a disability over the past decades.

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