Despite the fact that job vacancies and creation are on an upward trend, companies across many industries are still facing a labor shortage. Low-paying jobs, a mismatch between workers and employers, and a wave of workers quitting all contribute to the shortage, Bloomberg reported on the "Stephanomics" podcast Nov. 11.
In October, the U.S added over half a million jobs to the economy as hiring continued to strengthen. Indeed estimates there may be as many as 11.2 million job vacancies up for grabs. However, many employers are struggling with staffing shortages.
One reason for the shortages may be the type of jobs advertised. Some employees say that many companies are hiring for low-paying jobs that offer only one or two days a week, making it almost impossible to get by. Now, many companies are offering signing bonuses and upping pay in an attempt to resolve this problem and entice employees back who usually would have received low-wages.
Another reason for the continued labor shortage despite record-high vacancies is to do with matching. Ziprecruiter's chief economist, Julia Pollak, told the podcast that this labor market is a matching one, so even if there are similar numbers of job postings open and available workers, their skills and requirements do not necessarily match. "It takes time for people to build up the networks and the skills to move from one industry to another," she said.
For instance, the supply chain issues have boosted a surge in job postings in human resources, loading and stocking, but there is a limit to how many people have the skills and experience necessary to fill those roles.
The "worker's economy" also means that candidates have more options, so feel less obliged to take the first job offer they receive. Also, as workers continue to prioritize their well-being, mental health and care responsibilities, some are leaving the workforce for good.