Column: 2021 Labor Day — “Need Help”

We’ve all seen them — even the “need help” sign or the “sorry” note posted in the business window apologizes for the long wait times and the time savings due to labor shortages.

Despite being expected to be a tough spell for workers in the COVID-19 pandemic, some means have proved that 2021 will have surprisingly positive consequences for workers. There are record jobs, strong wage increases, new benefits packages, and increasingly flexible workplace policies.

But it’s not that bright for employers, and ultimately bad for employees.

To begin with, an estimated 200,000 establishments were closed due to a pandemic.

Many of the remaining people have workplace policies and rewards to find the workers they need, adapt to emerging safety standards, increase flexibility and meet employee demands for other workplace changes. We are facing serious problems such as revising packages.

Employers are also trying to plan ahead for an uncertain future. They are also preparing for a chain of potential new government policies that will make it more difficult for them to do business and grow their workforce.

This is far from what everyone expected from the COVID-19 pandemic.

In July 2020, the Congressional Budget Office predicted an unemployment rate of 8% in September 2021. Instead, the unemployment rate in September 2020 fell below 8% to 7.8%, to 5.4% in August 2021.

The unemployment rate of 5.4% (compared to 3.5% before the pandemic) usually gives employers an edge with many available workers. But not today.

Instead, employers are facing a new phenomenon of rising unemployment in addition to a serious labor shortage. Currently, there are a record 10.1 million jobs in the United States. 2.5 million more jobs than the previous 7.6 million jobs in November 2018.

Companies are anxious to reopen their pre-pandemic business, and as a result of the government sending three stimulus checks, Americans will save $ 2.1 trillion in the year following the pandemic, almost three times more than usual, and consume. People buy their products and services. But there are not enough workers to meet the demand.

Still, many employers feel they are afraid to quit and cannot ask workers to do a new job or work more time. And that’s the highest number of workers ever, with an average of 3.8 million workers quitting their jobs each month. The struggle for workers has led employers to raise wages, provide contracts, offer newly expanded benefits, college tuition refunds, and paid family and medical leave. rice field.

Employers and workers by politicians and bureaucrats replacing performance-based wages with stricter wage schedules and imposing a versatile federal paid family leave program that crowds what employers offer with greater flexibility and flexibility. You can go back and forth between the best interests of. ..

In addition, the Biden administration’s explicit attempts to force workers into unions further boost taxpayer and consumer costs, limit employment growth, and achieve the increasingly flexible workplace policies workers desire. It can make things difficult.

Working conditions in 2021 are very strong for workers, but they will almost certainly change if policy makers implement plans to raise taxes, enforce new regulations, and fine-tune employer-employee relationships. ..

Rachel Greszler is a Researcher in Economics, Budget and Qualifications at the Heritage Foundation.She wrote this

Column: 2021 Labor Day — “Need Help”

Source link Column: 2021 Labor Day — “Need Help”

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