America Has an Employment Problem, Not an Unemployment Problem
by John Lawrence
Wherever you look from air traffic controllers to fruit pickers to caregivers to teachers to police, there are not enough workers. That is why unemployment is so low - at 3.4%. The Health Services, Professional and Business Services, Trade, and Accommodation and Food Services industries have the highest numbers of job openings. The question is why there is a shortage of workers and what to do about it.The pandemic caused a major disruption in America’s labor force—something many have referred to as The Great Resignation. In 2022, more than 50 million workers quit their jobs, many of whom were in search of an improved work-life balance and flexibility, increased compensation, and a strong company culture. But a closer look at what has happened to the labor force can be better described as ‘The Great Reshuffle’ because hiring rates have outpaced quit rates since November of 2020. So, many workers are quitting their jobs—but many are getting re-hired elsewhere. In a game of musical chairs workers are seeking and getting better jobs, leaving high stress professions like nursing and teaching and getting paid more to do other things.
So America basically has a shortage of "essential workers," workers who do necessary work for traditionally low pay. America has developed so many ways to make money doing inessential work at higher pay so why should anyone who doesn't have to work in an essential job? There are two ways. 1) Pay more for essential work and 2) increase legal immigration because increasingly immigrants are doing the work that Americans who have been Americans longer don't want to do. The worker shortage has empowered workers. They are so to speak in the catbird seat. They are demanding more pay, shorter hours, better working conditions. This is all well and good, but, as the pandemic showed, essential work is necessary for people to live while so many other forms of work, while more lucrative, could disappear tomorrow without affecting much most Americans' quality of life. For instance, Facebook had 86,482 full-time employees as of December 2022, up from just 150 people in 2006. If Facebook disappeared tomorrow, nothing essential to life would be lost in my opinion. The same is true for other social media like Tik Tok. In fact considering the effects social media has had on the population, the world might be better off if all social media disappeared tomorrow. Then those workers would be available for more essential jobs.
If the advertising industry disappeared tomorrow, the world might be better off. For instance, I can find anything I might be interested in buying on Amazon. I don't need to be pounded on by TV commercials to be told what I should want or what I should need. In particualar, Facebook makes all its considerable revenues from advertising. It does not manufacture a product essential to life or any product at all. People are getting smart that there are cushier, safer jobs with better work-life balance than essential jobs. Caregivers like Certified Nursing Assistants (CNAs) are low paid but essential jobs. Anyone who has had a loved one in the hospital for any length of time realizes how essential they are. They do the dirty work like changing patients diapers and cleaning up when they haven't got to the patients' bedsides in time to prevent a tragedy. Nurses and teachers are overworked considering the nurse/patient ratio and the teacher/student ratio. Much essential work is done by non college graduates and, therefore, does not merit the esteem that college graduates' jobs garner. Nevertheless, they are more important jobs in an essential sense, than many jobs that require a college education. When you need a plumber, you will not usually be hiring a college graduate.
About half of Americans who lost their job during the pandemic and are still not working say they are not willing to take jobs that do not offer the opportunity for remote work. However, many essential jobs can't be done remotely. They are "hands on." It is about time that America values its essential workers and makes a distinction between what's essential and what is inessential. It's a question, to some extent, of values, of what kinds of work are valued. This is where unions come in. America cannot function without essential workers. Yet the only way they can get the pay and benefits they deserve is to unionize and withdraw their workforce if necessary to get what they deserve. For sure, they won't get a better paying job otherwise unless they quit and go to work for Facebook.
