The labour supply crisis: a JOLT from the blue!
9 September 2021 | by Peter Warburton
The publication of another JOLTS report featuring another record high in US job openings, accompanied by a record high monthly quit rate (3.1%), tell us that a crisis is brewing in labour supply. Post-pandemic government largesse has fired the starting gun on a bidding war for competent, hard-working, reliable staff. Employers in the leisure and accommodation sector, for example, may find that they need to offer 10%-15% higher wages than before the pandemic to secure a viable workforce. Kitchen staff are turning to better-paid driving jobs; skilled tradesfolk find that they can lift their daily rates by 20 per cent and still find plenty of work. The gap between job openings and hires in the manufacturing sector increased to a record 450k in July, causing constraints on production.