Since the economic recovery of Covid-19 gained steam in spring 2021, we’ve heard about a series of white knights that would reverse the nation’s workforce woes.
Workers will come back when stimulus funds run out. Workers will come back when Covid-19 case counts die down. Baby boomers who retired early will decide to come back. Those supposed saviors have mostly turned out to be paper tigers, and the labor market remains historically tight in the face of mounting economic worries.
Despite recession worries and inflationary headwinds, 44% of all owners reported job openings they could not fill in the current period,As the calendar turns to 2023, it’s time for businesses to face the harsh reality that experts have been warning about for years: A tight labor market is going to be the new normal. A number of indicators, from labor force participation rates to job-opening data, backs up their claims — serving as a workforce warning light of sorts.
"The data so far do not suggest that excess retirements are likely to unwind because of retirees returning to the labor force. Older workers are still retiring at higher rates, and retirees do not appear to be returning to the labor force in sufficient numbers to meaningfully reduce the total number of excess retirees," Powell said.Gen Z is about 3.
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