{"id":51470,"date":"2021-10-16T09:12:42","date_gmt":"2021-10-16T13:12:42","guid":{"rendered":"https:\/\/www.sogolytics.com\/blog\/?p=51470"},"modified":"2021-10-16T21:14:17","modified_gmt":"2021-10-17T01:14:17","slug":"mystery-of-disappearing-workers","status":"publish","type":"post","link":"https:\/\/www.sogolytics.com\/blog\/mystery-of-disappearing-workers\/","title":{"rendered":"Where have the employees gone? What we know."},"content":{"rendered":"<p>Whether holding longer for customer service, unable to get into a store that\u2019s closed early, or waiting weeks for a product or service, you\u2019ve probably personally experienced the current tight labor market\u2019s impact. Anyone trying to hire right now is facing even greater difficulty. They have to be asking, \u201cWhere have all the workers gone?\u201d Theories abound as <a href=\"https:\/\/www.sogolytics.com\/blog\/pandemic-employee-churn-challenge\/\" target=\"_blank\" rel=\"noopener\">The Great Resignation<\/a>\u00a0(or do you prefer &#8216;The Big Quit&#8217;?) continues, but this article rounds up what we know in the fourth quarter of 2021.<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>First, the actual statistics from the Bureau of Labor Statistics. Their\u00a0<a href=\"https:\/\/www.bls.gov\/news.release\/pdf\/empsit.pdf\" target=\"_blank\" rel=\"noopener\">September 2021 data<\/a> reveals:<\/p>\n<div class=\"div-minispacer\"><\/div>\n<ul>\n<li>Total nonfarm payroll employment rose by 194,000<\/li>\n<li>The unemployment rate fell by 0.4 percentage point to 4.8 percent<\/li>\n<li>The number of unemployed persons fell by 710,000 to 7.7 million<\/li>\n<\/ul>\n<p>That all sounds great. \u201cHowever, they remain above their levels prior to the coronavirus (COVID-19) pandemic (3.5 percent and 5.7 million, respectively, in February 2020).\u201d Even with \u201cnotable job gains\u201d in <a href=\"https:\/\/www.sogolytics.com\/travel-hospitality\/\" target=\"_blank\" rel=\"noopener\">leisure and hospitality<\/a>, professional and business services, and retail trade, you\u2019d be hard pressed to step out almost anywhere in the world and not see a \u201cHelp Wanted\u201d sign.<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>So, what\u2019s going on? Where have all the workers gone?<\/p>\n<div class=\"div-spacer\"><\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-51472\" src=\"https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2021\/10\/tim-mossholder-pFjMjuZpm24-unsplash-1024x683.jpg\" alt=\"closed sign\" width=\"1024\" height=\"683\" srcset=\"https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2021\/10\/tim-mossholder-pFjMjuZpm24-unsplash-1024x683.jpg 1024w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2021\/10\/tim-mossholder-pFjMjuZpm24-unsplash-300x200.jpg 300w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2021\/10\/tim-mossholder-pFjMjuZpm24-unsplash-768x512.jpg 768w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2021\/10\/tim-mossholder-pFjMjuZpm24-unsplash-600x400.jpg 600w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2021\/10\/tim-mossholder-pFjMjuZpm24-unsplash-50x33.jpg 50w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2021\/10\/tim-mossholder-pFjMjuZpm24-unsplash.jpg 1920w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<div class=\"div-spacer\"><\/div>\n<h2>Theory 1: \u201cWe\u2019re living in unprecedented times\u201d<\/h2>\n<p>This was the <a href=\"https:\/\/www.businessinsider.com\/3-reasons-for-labor-shortage-according-to-biden-labor-secretary-2021-10\" target=\"_blank\" rel=\"noopener\">explanation offered in October<\/a>\u00a0by U.S. Labor Secretary Marty Walsh. The pandemic has seen potential workers:<\/p>\n<div class=\"div-minispacer\"><\/div>\n<ul>\n<li>Moving out of areas that are hiring<\/li>\n<li>Frustrated by the search, finding only openings for low-paying roles<\/li>\n<li>Remaining home to avoid contracting the virus<\/li>\n<li>Caring for someone who was sick or dealing with symptoms themselves<\/li>\n<\/ul>\n<h2>Theory 2: Maybe they don\u2019t need the $<\/h2>\n<p>One argument is that people with stimulus check funds in their savings account are less motivated to leave the sidelines. Plus, unemployment benefits could have been keeping employees from returning to the workforce. Since federal benefits expired in early September, that may see the tide turning some. But state benefits persist in different regions.<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>At the same time, there are labor shortages globally. <a href=\"https:\/\/www.nytimes.com\/2021\/09\/04\/opinion\/labor-shortage-biden-covid.html\" target=\"_blank\" rel=\"noopener\">Continental Europe and Britain<\/a>\u00a0\u201cbarely expanded unemployment benefits during the pandemic\u201d and they are similarly struggling.<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>According to the <a href=\"https:\/\/www.nfib.com\/content\/press-release\/economy\/small-business-optimism-slips-in-september-as-labor-shortages-inflation-impact-business-operations\/\" target=\"_blank\" rel=\"noopener\">National Federation of Independent Business<\/a> (NFIB), \u201c51% of firms had openings last month, up 1 percentage point from August and the largest share in monthly data back to 1986.\u201d The NFIB also found a record 42% of small-business owners had raised compensation to entice people back into the workforce.<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>Dr. Mardy Leathers, director of Missouri\u2019s Office of Workforce Development, <a href=\"https:\/\/www.newspressnow.com\/news\/local_news\/business\/where-have-all-the-workers-gone\/article_a3f70fec-0c2d-11ec-a1f1-e7eb9b94c135.html\" target=\"_blank\" rel=\"noopener\">noted in September<\/a> that parents with school-age children may be reluctant to take jobs because they lack confidence that schools will remain open.<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>In particular, job statistics indicate more <a href=\"https:\/\/www.wftv.com\/news\/florida\/where-have-all-workers-gone-heres-what-experts-data-say-is-leading-employment-shortages\/KEPFONC3PVBY3BOLYMZDIPRZ5Y\/\" target=\"_blank\" rel=\"noopener\">women are staying home<\/a> due to lingering childcare issues. However, a <a href=\"https:\/\/www.nber.org\/papers\/w28934\" target=\"_blank\" rel=\"noopener\">June report<\/a> from the National Bureau of Economic Research concluded, \u201cour analysis yields robust evidence that differential job loss among mothers of young children accounts for a negligible share of the ongoing aggregate employment deficit.\u201d<\/p>\n<div class=\"div-spacer\"><\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-51475\" src=\"https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2021\/10\/charles-deluvio-HHvTueTr3KY-unsplash-1024x683.jpg\" alt=\"parents working from home\" width=\"1024\" height=\"683\" srcset=\"https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2021\/10\/charles-deluvio-HHvTueTr3KY-unsplash-1024x683.jpg 1024w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2021\/10\/charles-deluvio-HHvTueTr3KY-unsplash-300x200.jpg 300w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2021\/10\/charles-deluvio-HHvTueTr3KY-unsplash-768x512.jpg 768w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2021\/10\/charles-deluvio-HHvTueTr3KY-unsplash-600x400.jpg 600w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2021\/10\/charles-deluvio-HHvTueTr3KY-unsplash-50x33.jpg 50w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2021\/10\/charles-deluvio-HHvTueTr3KY-unsplash.jpg 1920w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<div class=\"div-spacer\"><\/div>\n<h2>Theory 4: Voluntary quits are high<\/h2>\n<p>The older generation is deciding to leave the workforce. Instead of taking the risk of working right now, people are saying \u201cbuh-bye\u201d to their 9 to 5\u2019s. In August, an astonishing 4.3 million workers quit their jobs. The <a href=\"https:\/\/www.aljazeera.com\/economy\/2021\/10\/12\/us-workers-are-quitting-their-jobs-in-record-numbers\" target=\"_blank\" rel=\"noopener\">Job Openings and Labor Turnover survey<\/a> found \u201cthat is 2.9 percent of all employed workers in the US, marking the highest quits rate on record.\u201d<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>Plus, with the stock market doing well during the pandemic, many older workers have been able to accelerate retirement plans.<\/p>\n<div class=\"div-spacer\"><\/div>\n<h2>Theory 5: Found a better option<\/h2>\n<p>It\u2019s not that people are no longer in the work force. Rather, they\u2019ve found <a href=\"https:\/\/www.digitaljournal.com\/world\/job-vacancies-where-have-all-the-workers-gone-nobodys-too-sure-but-theres-one-very-obvious-possibility\/article\" target=\"_blank\" rel=\"noopener\">a new way to earn a living<\/a>. They may be endeavoring to start and run their own businesses. In an opinion piece, Real Money\u2019s <a href=\"https:\/\/realmoney.thestreet.com\/jim-cramer\/jim-cramer-where-have-all-the-workers-gone--15690981\" target=\"_blank\" rel=\"noopener\">Jim Cramer noted<\/a> there are more new companies opening up, and the number of IPOs in 2021 was 500% more than last year.<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>Or, the worker could be joining the gig economy, which offers <a href=\"https:\/\/www.sogolytics.com\/blog\/do-employees-want-remote-work-to-stay\/\" target=\"_blank\" rel=\"noopener\">greater flexibility<\/a> and even the possibility of multiple income streams.<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>Labor Secretary Walsh observed, \u201cI think a lot of people are re-imagining or rethinking about what&#8217;s next for them.\u201d<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>An M.I.T. economics professor <a href=\"https:\/\/www.nytimes.com\/2021\/09\/04\/opinion\/labor-shortage-biden-covid.html\" target=\"_blank\" rel=\"noopener\">echoed this opinion<\/a> in the New York Times when he wrote, \u201cPeople\u2019s valuation of their own time has changed: Americans are less eager to do low-paid, often dead-end service and hospitality work, deciding instead that more time on family, education and leisure makes for a higher standard of living, even if it means less consumption.\u201d<\/p>\n<div class=\"div-spacer\"><\/div>\n<h2>Theory 6: It\u2019s the skills gap<\/h2>\n<p>Another problem is a misalignment between what the employer is looking for and the skills offered by the potential employee. In a <a href=\"https:\/\/www.shrm.org\/resourcesandtools\/hr-topics\/talent-acquisition\/pages\/labor-shortages-the-disconnect-solutions-unemployment-benefits-childcare-covid-fear.aspx\" target=\"_blank\" rel=\"noopener\">Society for Human Resource Management (SHRM) study<\/a>, \u201c60 percent of organizations say they can&#8217;t find applicants with the right skills, and 30 percent of job seekers say their skills don&#8217;t match available jobs.\u201d<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>Jobs today require more technical and digital expertise. Plus, the pace of change is quick. Closing the skills gap will continue to take time and effort.<\/p>\n<div class=\"div-spacer\"><\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-51476\" src=\"https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2021\/10\/GettyImages-640351119-1024x724.jpg\" alt=\"digital literacy job skills\" width=\"1024\" height=\"724\" srcset=\"https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2021\/10\/GettyImages-640351119-1024x724.jpg 1024w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2021\/10\/GettyImages-640351119-300x212.jpg 300w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2021\/10\/GettyImages-640351119-768x543.jpg 768w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2021\/10\/GettyImages-640351119-50x35.jpg 50w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<div class=\"div-spacer\"><\/div>\n<h2>What\u2019s to be done about it?<\/h2>\n<p>Despite the way this article is organized, these theories are not mutually exclusive. It could be a combination of all these factors. For <a href=\"https:\/\/www.sogolytics.com\/hr-analytics\/\" target=\"_blank\" rel=\"noopener\">hiring managers<\/a>, having a good guess why there is a worker shortage doesn\u2019t help that much. Don\u2019t worry! Our next article on this topic will share specific examples of what businesses of all sizes are doing to attract and retain employees in this post-pandemic pinch.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Whether holding longer for customer service, unable to get into a store that\u2019s closed early, or waiting weeks for a product or service, you\u2019ve probably personally experienced the current tight labor market\u2019s impact. Anyone trying to hire right now is facing even greater difficulty. They have to be asking, \u201cWhere have all the workers gone?\u201d Theories abound as The Great Resignation\u00a0(or do you prefer &#8216;The Big Quit&#8217;?) continues, but this article rounds up what we know in the fourth quarter of 2021. First, the actual statistics from the Bureau of Labor Statistics. Their\u00a0September 2021 data reveals: Total nonfarm payroll employment rose by 194,000 The unemployment rate fell by 0.4 percentage point to 4.8 percent The number of unemployed persons fell by 710,000 to 7.7 million That all sounds great. \u201cHowever, they remain above their levels prior to the coronavirus (COVID-19) pandemic (3.5 percent and 5.7 million, respectively, in February 2020).\u201d Even with \u201cnotable job gains\u201d in leisure and hospitality, professional and business services, and retail trade, you\u2019d be hard pressed to step out almost anywhere in the world and not see a \u201cHelp Wanted\u201d sign. So, what\u2019s going on? Where have all the workers gone? Theory 1: \u201cWe\u2019re living in unprecedented times\u201d This was the explanation offered in October\u00a0by U.S. Labor Secretary Marty Walsh. The pandemic has seen potential workers: Moving out of areas that are hiring Frustrated by the search, finding only openings for low-paying roles Remaining home to avoid contracting the virus Caring for someone who was sick [&hellip;]<\/p>\n","protected":false},"author":41,"featured_media":49240,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[156],"tags":[415,480,241,417,416],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v19.7.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Where have the employees gone? What we know. - Sogolytics Blog<\/title>\n<meta name=\"description\" content=\"Wondering where have all the workers gone? If you\u2019re trying to hire, it\u2019s likely. So, we\u2019ve pulled together analysis to share what we know right now.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.sogolytics.com\/blog\/mystery-of-disappearing-workers\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Where have the employees gone? What we know. - Sogolytics Blog\" \/>\n<meta property=\"og:description\" content=\"Wondering where have all the workers gone? If you\u2019re trying to hire, it\u2019s likely. So, we\u2019ve pulled together analysis to share what we know right now.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.sogolytics.com\/blog\/mystery-of-disappearing-workers\/\" \/>\n<meta property=\"og:site_name\" content=\"Sogolytics Blog\" \/>\n<meta property=\"article:published_time\" content=\"2021-10-16T13:12:42+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-10-17T01:14:17+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2020\/12\/emp-6.png\" \/>\n\t<meta property=\"og:image:width\" content=\"478\" \/>\n\t<meta property=\"og:image:height\" content=\"714\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Jenn Goddu\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.sogolytics.com\/blog\/mystery-of-disappearing-workers\/\",\"url\":\"https:\/\/www.sogolytics.com\/blog\/mystery-of-disappearing-workers\/\",\"name\":\"Where have the employees gone? 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