The lack of workers risks worsening inflation, which could trigger a recession.
President Joe Biden is facing consistent but critical assessments of his leadership and the national economy.
In turn, a lesser known data point has drawn outsized attention: the share of the adult population not working or actively looking for work. If workers are in ample supply, it gives the labor market some slack and limits wage growth. However, workforce participation came in at 62.1% last month, markedly lower than the pre-pandemic level of 63.4%.
Over the past three months, there were 3.6 million more Americans who had left the labor force and said they didn't want a job, compared with the same period in 2019, Aaron Sojourner, an economist at the Upjohn Institute, told ABC News. Among those 3.6 million people, individuals aged 55 and above made up about 90%, he added.
Those savings afforded workers the flexibility to make major changes like quitting their jobs and cutting expenses to afford the lost income, Jesse Wheeler, an economic analyst with the research firm Morning Consult, told ABC News. During the pandemic, new business applications soared and they have remained above pre-pandemic levels, Census Bureau data showed. The Bureau reported nearly 433,000 new business applications in October, a marked increase from 313,000 in December 2019. In July 2020, new business applications reached as high as 552,000.
The increase in gig work across the economy likely accounts for some of those missing from the workforce, said Sojourner.
Singapore Latest News, Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
‘Black Panther: Wakanda Forever’ Stays Atop Box Office for Fifth Weekend as Overall Ticket Sales CraterWithout any box office competition, “Black Panther: Wakanda Forever” has remained the No. 1 movie in North America for the fifth weekend in a row. The superhero sequel added $11.1 milli…
Read more »
‘Black Panther: Wakanda Forever’ Stays Atop Box Office for Fifth Weekend as Overall Ticket Sales CraterWithout any box office competition, “Black Panther: Wakanda Forever” has remained the No. 1 movie in North America for the fifth weekend in a row. The superhero sequel added $11.1 milli…
Read more »
How to take charge of your future, according to this life coachDespite her six-figure executive job overseeing a $45 million portfolio, Bethany Clemenson felt stuck.
Read more »
Brad Lander wants to outlaw firing workers without ‘just cause’ — even though he did itLander was slammed by critics for firing two well-respected staffers in his own office last month without hinting their jobs were in jeopardy or providing any examples of just cause.
Read more »