Help Wanted: Inside America’s Labor Shortage

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The United States has a lot of open jobs but not enough workers to fill them.

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As of Feb. 2024, there are 9.5 million job openings but only 6.5 million unemployed workers, per the U.S. Chamber of Commerce.

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The industries most impacted by the labor shortage include law enforcement, manufacturing, healthcare, aviation, education, and childcare. 

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Some of the leading factors contributing to the labor shortage include:

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1. An aging workforce

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More than 11,200 Americans will turn 65, the average retirement age, every day from 2024-2027, per CNBC.

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2. Entrepreneurship

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Entrepreneurship is booming in the United States. A record-breaking 5.5 million businesses were started in 2023, up from 5.0 million in 2022, per the U.S. Chamber of Commerce.

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3. Social Media

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According to Forbes, 2 million people made six figures from social media in 2020. Social media is now a viable career path for many Americans, especially as usage increases – the average American spends two hours and 25 minutes daily on social media.

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4. Lack of childcare access

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The pandemic forced many childcare providers to shut down. In Spring 2020, 3.5 million mothers left their jobs, driving the participation rate for working moms from 70% to 55%. Many moms haven’t returned to work, and the return-to-office mandates have exacerbated the problem by eliminating remote work options.

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The other alarming issue is many Americans don’t want to go back to work, per the U.S. Chamber of Commerce. Two-thirds (66%) of Americans who lost their full-time job during the pandemic said they were only somewhat active or not active at all in searching for a new job. And it doesn’t help when almost a quarter (24%) indicated government aid packages incentivized them not actively to look.

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Who would have thought that giving out free money would lower people's motivation to go to work?