The new unofficial motto of the U.S. could be "Help Wanted." Companies from coast to coast are still scrambling to fill a massive labor shortage that began last year as the economy emerged from the COVID-19 pandemic. Walmart just announced plans to hire 50,000 new employees by May, with some positions paying as much at $30 an hour. Target has also announced a starting wage for some jobs at $24 an hour. "The service industry has a huge, gaping hole of employees to maintain normal functionality," says Hank Lewis, economics professor at Lone Star College. "And with the big influx of customers coming back (from the pandemic), they need more employees."
That 'gaping hole' is getting bigger. A recent Goldman Sachs analysis estimates the U.S. labor shortage at 4.6 million people, the largest since World War II. Lewis tells KTRH much of this is being driven by the Great Resignation, which has seen workers quitting jobs at historic rates during the past year. "Some of these employees, especially in the service sector, felt like they were underpaid and they were overworked," he says. "And on top of that, they felt they were forced to put up with extreme disrespect from 'Karens' and other rude customers."
"So now, in order to entice these people back into the labor force, as well as meet the needs of suppliers and customers, wages are going up due to simple market supply and demand," Lewis continues.
What it means for the overall economy is that despite growing concerns about inflation, the job market remains as healthy as ever. But that could still change. "Where this is all going to settle is anybody's guess," says Lewis. "The war (in Ukraine) situation and the oil prices situation are the two big question marks that could actually stymie this economy, if we don't see some improvement there soon."
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