No one is looking for work: as stimuli for trillions have sent the US job market into a tailspin
The US labor market is going into crisis: on the one hand, in the aftermath of the covid pandemic there are millions of former workers who have lost their jobs and are unable to return to business as their jobs may no longer exist and their skills vanish, rendering them unemployable. On the other hand, Fed chairman Powell said to the IMF on Thursday that over nine million Americans are left out of work, while a quick glance at the latest statistics shows that there are over 100 million Americans who are out of the workforce. . Of these, only 6.85 million want a job currently and a record 94 million are not looking for it.
At the same time, JPMorgan and many others have noticed that when you look at the recent JOLTS (job openings and labor turnover survey) data, which shows an almost record number of new job offers, and an incredible shortage of supply.
In reality, there are now several data relating to medium and small companies that cannot find staff. The wages offered as unemployment benefits after the latest federal incentive plan are so high that many workers refuse to return to work without pay increases. Let's see how the number of unsatisfied small business vacancies is skyrocketing.
Even more surprisingly, 91% of respondents said they had few or no qualified candidates for their job offers in the past three months. We are at the highest level since the indicator was created in 1993.
Recall that just a year ago the unemployment rate was 14.8%, now it has dropped to 6%, but still it is well above the 3.5% rate of February 2020, before the pandemic. So, judging by the unemployment rate – which the Federal Reserve follows closely – there is still some catching up on the job market.
The fact is that a kind of vicious circle is being created: subsidies, of the order of 300 or 400 dollars a week, do not invite people to go to work for only 100 dollars more. of wanting to work from home because they do not yet feel able, capable, to go back to doing a job in person. At the same time, real work, productive both in money and in qualifications and skills for the worker requires to be present in person. So the current crisis, caused by an excess of subsidies to the unemployed, risks damaging the US workforce itself in the medium to long term, due to excess aid.
I understand that all this seems absurd to Italians, who receive little or nothing from our government, but you can starve and you can die from overeating. The right should be fed.
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The article Nobody is looking for work: how stimuli for trillions have sent the US job market into a tailspin comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/nessuno-sta-cercando-lavoro-come-stimoli-per-migliaia-di-miliardi-hanno-mandato-in-tilt-il-mercato-del-lavoro-usa/ on Thu, 08 Apr 2021 06:00:30 +0000.