Economist And Data Scientist Explains Why There Is Not Really A Labor Shortage Currently

  • Calling the current employer demand and employment issues a labor shortage isn’t quite accurate, says Daniel Zhao, a senior economist and data scientist at one of the web’s top jobs sites. 
  • “I would say labor shortage is kind of a tricky term because it does imply that there aren’t workers available,” Zhao said when asked whether he thinks the US is facing an actual labor shortage.
  • 2022 will be “a slog getting workers back into the labor force because it’s not just a matter of snapping your fingers and sort of convincing everybody that it’s safe,” Zhao said.

Rachel DuRose and Madison Hoff from Insider writes:

“Calling the employer demand and employment issues right now a labor shortage isn’t quite right, Daniel Zhao says.

He should know.

Zhao is a senior economist and data scientist at Glassdoor, one of the internet’s top jobs sites. He regularly comments to Insider on the monthly jobs report from the Bureau of Labor Statistics and about the state of the jobs market. And recently, he led a workplace-trends report for Glassdoor that crunched data on millions of employee reviews and job searches, and laid out what to expect in the workplace and in hiring for 2022.

A major takeaway he had is that hiring will remain difficult in 2022.

Zhao told Insider this isn’t solely due to a lack of capable workers but rather the number of workers who are just choosing not to participate in the workforce for various reasons.

“I would say labor shortage is kind of a tricky term because it does imply that there aren’t workers available,” Zhao said when asked whether he thinks the US is facing a labor shortage. “And what we do know is that there are a significant number of workers on the sidelines who would be willing to come back to work if the conditions were right.”

The trouble, he said, is that the conditions just aren’t right…”

See full story here.



Categories: Business, Economy, Labor

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