Hello everyone,
Last week, the Delaware Department of Labor released a chart that illustrated the gap between the number of unemployed and posted job openings in 2021.
The numbers came out of the federal Bureau of Labor Statistics Job Opening and Labor Turnover report.
2021 started with the number of unemployed being 5,550 greater than the figure for available job openings. By the end of the year, the situation was reversed with 5,400 more jobs than unemployed individuals. (December figures are preliminary).
The gap was greatest in the summer months as seasonal businesses at the beach and other areas struggled to find workers. Still, the situation did not improve much in the fall and early winter.
We learned that the end of extended unemployment benefits did not have a big impact on the labor crunch.
Other factors were in play including the following possibilities:
- – Churn caused by people quitting jobs and having an increasing amount of confidence that their search would be successful.
- – Individuals retiring early, perhaps due to a rising stock market that boosted 401 (k) accounts. The current stock market roller coaster may lead to second thoughts.
- – The now expired child tax credit.
- – The cost and lack of options in child care.
- – Front-line workers not ready to return due to the Covid-19 Omicron variant.
- – Families and individuals battling the latest Covid-19 surge Famililes living on one income.
- – Understaffed HR departments facing a backlog of screenings of candidates.
- – Employers unable or unwilling to raise pay and benefits.
Moving into 2022, the situation is not expected to change dramatically.
Inflation is rearing its ugly head and its impact remains uncertain.
Will more spouses go back to work in an effort to aid the family budget or will gas and food prices lead to people hunkering down?
Whatever decisions are made in response to inflation and the virus, it appears that finding the right workers will be a formidable task this year.
Here’s hoping you had a chance to enjoy the nice weather. This newsletter returns tomorrow. – Doug Rainey, chief content officer.
