Despite the attention-grabbing headlines, layoffs are still about 25% below pre-pandemic levels, and for every job lost there are a record 7.5 waiting to be filled. Comparing the red line (job openings) to the blue line (layoffs and discharges) it’s apparent the gap has grown consistently over the past decade. While there’s more to the story - this doesn’t speak to the quality of employment, wages, etc. - one can’t help but wonder if a shrinking labor participation rate is worsening an American labor shortage. Also, is the gap worsened because the price of labor isn’t keeping up with demand. Supply and demand meet at a certain price point, and if prices are held artificially low shortages occur.
7.5 jobs for every laid off worker
7.5 jobs for every laid off worker
7.5 jobs for every laid off worker
Despite the attention-grabbing headlines, layoffs are still about 25% below pre-pandemic levels, and for every job lost there are a record 7.5 waiting to be filled. Comparing the red line (job openings) to the blue line (layoffs and discharges) it’s apparent the gap has grown consistently over the past decade. While there’s more to the story - this doesn’t speak to the quality of employment, wages, etc. - one can’t help but wonder if a shrinking labor participation rate is worsening an American labor shortage. Also, is the gap worsened because the price of labor isn’t keeping up with demand. Supply and demand meet at a certain price point, and if prices are held artificially low shortages occur.