The Labor Market: Where Did Workers Go?

Document Type

Article

Publication Date

Spring 3-28-2024

Abstract

The Hibbs Institute's March 2024 "Hibbs Outlook of East Texas" report, titled "The Labor Market: Where Did Workers Go?", examines the labor shortages in the United States, with a particular focus on East Texas. The report highlights that the COVID-19 pandemic led to a significant economic recession, resulting in the loss of nearly 22 million jobs and an unemployment rate spike from 3.5% in February 2020 to 14.8% in April 2020. Subsequent government interventions, including the CARES Act and reduced federal interest rates, facilitated a rapid recovery, with employment levels surpassing pre-pandemic figures by June 2022. Despite this recovery, a labor shortage emerged by mid-2021, characterized by job openings exceeding the number of available workers. In East Texas, this shortage became evident in 2019, intensified during the pandemic, and peaked in April 2022 with approximately 2.02 job openings per unemployed individual. The report attributes these shortages to factors such as early retirements, increased childcare costs, alternative income sources, and skill mismatches, emphasizing the need for strategic policies to address ongoing labor market imbalances.

Persistent Identifier

http://hdl.handle.net/10950/4802

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