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It seems everywhere you go today, you see Help Wanted signs. You see them at restaurants, fast food companies, and department stores. And in my discussions with association members, I constantly hear, “I can’t find anyone who wants to work.” These discussions have evolved from members looking for quality employees to hire to looking for anyone to hire. These conversations caused me to focus on two things. First, what happened to all the people that were working before the pandemic? Two, what can be done to fix the problem?
Demographic Shifts Due to the Pandemic
We have heard for years that the American population is aging and that retiring baby boomers would cause an employee shortage. The global financial crisis of 2007 to 2009 slowed the retirement process for many baby boomers. Many older workers delayed retirement due to the strong labor market and lingering concerns about their financial stability. These dynamics kept the labor participation rate largely stable from 2012–2020. Then the pandemic hit.
When the pandemic hit the US, many older workers understood that, due to their age, they were more vulnerable to the disease and thus were uncomfortable working in a riskier environment. These baby boomers were also in a better financial situation than in 2009. It took a while for the financial markets to rebound from the Great Recession. Today is different. The downturn in the markets due to the pandemic was short-lived. Individuals interested in retirement before the pandemic are financially better off today. Thus retirement is a viable option.
Younger people working from home during the pandemic were able to assess their work-life balance. In a recent article in the Financial Times, Betsey Stevenson of the University of Michigan explained that the pandemic has resulted in significant shifts in society. She believes that more Americans are staying home, cooking their own food, and taking care of children and elders. Stevenson said, “I do wonder whether there has been a shift in preferences to wanting a little bit less work and a little bit more, ‘do things for ourselves.’”
The shift in work-life balance can be seen in the participation rate for females aged 25–54.
By: Lou Caron, PIASC President/CEO
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