Jobs galore in the post-Covid recovery but who wants them?

The US economy is predicted to have created another 440,000 jobs in February, following the 467,000 which were added in January. These jobs, mainly in leisure and hospitality, show a strong economic rebound as businesses reopen and consumers return to their pre-pandemic spending habits.

Although the unemployment rate has also been decreasing, now at 3.9%, there is a new problem across US markets: not enough workers! Many people are not returning to work and as a result the American economy is facing a huge labour shortage.

This is restricting firm’s ability to bounce back and take full advantage of the somewhat return to economic normality. As firms compete for workers, this has given current employees and job-seekers significant leverage over employers. As a result, many companies are increasing wages or improving benefits to attract new workers.

Higher wages sound great but with inflation measured at 7.9% last month they may not do much to entice new workers. In addition, workers across the country are likely to feel the squeeze in the coming months as their purchasing power weakens.