CLEVELAND – It is estimated that there is more than one job open to any American looking to work across the country, but still there are millions of people who have not yet returned to work.
Why? This question is not an easy one to answer, though the White House, Congress and economists are struggling to try.
In January 2020, the US economy was buoyant. Unemployment was low, wages rose, and inflation was under control. It was heading south at that point when the February and March pandemic started its effects. The country’s business leaders immediately tried to insure the Americans.
“Let me just comment – this is not like the financial crisis,” said former US Treasury Secretary Steve Mnuchin on -ril 13th Unemployment skyrocketed and people waited in lines to get jobs.
Like Canton in March 2009, when more than 200 people showed up for 24 call center jobs that paid 10 dollars an hour. Or when a janitorial job went off for $ 15 an hour in the afternoon and a local school district got 500 -plicants in just three days.
This crisis did just the opposite.
“There are about 10 million jobs open today, and I believe there are about 8 million people out of work,” said outgoing Ohio Senator Rob Portman.
The big difference, economists say, was that the economy was solid in 2020, unlike in 2009 when the pandemic broke out, and while Washington may have done too little at the time, they didn’t make that mistake again.
“We just had much, much more fiscal and monetary stimulus this time around,” said Bill Adams, chief international economist at PNC Financial Services. “With this impetus for a faster economic recovery, the labor market has tightened faster than workers come back – day and night compared to what we saw last time.”
It was believed that these workers would come back when cash benefits such as extended unemployment expired this summer and fall. One problem that everyone is pointing to because it doesn’t h -pen is childcare.
“The number of childcare workers in the United States has decreased by more than 10% compared to pre-pandemic times, while the total population has decreased by less than 3% in the workforce,” said Adams.
Another topic that everyone is pointing out is the real health concerns that the pandemic still brings with it, especially for those who have been in low-paying jobs. This is especially true for older workers, who were the largest source of US workforce growth prior to the pandemic.
“I mean, you go to a job where you are actually in public and you go home every night because you are concerned that this virus may be passed on that is still fatal to thousands of people … Senator. I mean, you go home every night.” Sherrod Brown.
However, Adams said that all signs are pointing to inflation peaking in the next few months, the supply chain crisis to ease in the first few months of the new year, and many of these workers returning, albeit many in new areas.
“We expect another year of r -id recovery in 2022,” said Adams. “We assume that total employment will probably return to pre-pandemic levels by the middle of next year.”
Adams is optimistic about the outlook for the next year not only at the macro level, but also for companies and employees.
“So it looks like we’re going to have another year of strong growth in 202 and it should be good for workers – higher wages – and businesses too,” he said.
However, as during this pandemic, the wildcard is the pandemic itself.
Help Wanted: Ohio
Help Wanted: Ohio addresses issues related to employment in Northeast Ohio.
We examine the broken unemployment system, our broken skills and education systems, the impact of labor shortages on our local economy, as well as the industries most affected. We hold executives and legislators accountable and look for those who are working on solutions.
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