Mitch McConnell Says U.S. Labor Shortage Will Be Solved Once Stimulus Money Empties Out

Senate Minority Leader Mitch McConnell has responded to the U.S. labor shortage problem by providing his own theory.

Business Insider reported that McConnell said that there are a lot of people "sitting on the sidelines because, frankly, they're flush for the moment."

The Kentucky Republican added that what they hope is once people run out of stimulus money, they will start to think that it is better to work than not to work.

McConnell had gone against U.S. President Joe Biden's stimulus law, which passed with only Democratic votes in March 2021 after two previous rescue packages approved by former U.S. President Donald Trump's administration.

Republicans have long blamed the $1,400 direct payment to Americans for worsening inflation and helping keep people out of the workforce.

U.S. Labor Shortage

The U.S. Department of Labor noted that there are 5.5 million more job openings than there are workers available to fill them, according to a CNBC News report.

The latest data from thecU.S. Chamber of Commerce showed that there are 11.4 million job openings in the U.S. However, there are only six million unemployed workers. If every unemployed person in the United States found a job, there would still be 5.4 million open jobs.

More than 120,000 businesses temporarily closed during the onset of the pandemic, with more than 30 million U.S. workers left unemployed.

Job openings have since then steadily increased since January 2020, while unemployment has slowly declined.

The labor force participation rate is 62.3%, down from 63.3% in January 2020.

There are several factors to cause the ongoing shortage, with the U.S. Chamber surveying unemployed workers who lost their jobs during their pandemic on what is keeping them from returning to work.

Around one in three women or 33%, noted the need to be at home and care for children as one of the reasons why it is difficult to return to work.

The survey also revealed that workers are concerned about COVID-19 at work, the pay is too low, or are more focused on acquiring new skills and education before rejoining the job market.

Stimulus Money and Other Factors

Other factors contributing to the U.S. labor shortage are an increase in savings, enhanced unemployment benefits, stimulus checks, and not being able to go out and spend money during the lockdown. These factors contributed to Americans collectively adding $4 trillion to their savings accounts since early 2020.

Aside from that, more than three million adults jumped into early retirement as of October 2021. The number of adults 55 and older being detached from the labor force due to retirement grew from 48.1% in the third quarter of 2019 to 50.3% in the third quarter of 2021.

There have also been new business starts, with some employees either leaving work or staying unemployed to open their own businesses.

Lack of childcare also forced many to remain unemployed, with the childcare providers having to close or scale down due to the pandemic.

This article is owned by Latin Post.

Written by: Mary Webber

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