The report also includes routine revisions to the seasonally adjusted household survey data over the past five years. That survey is used to calculate statistics like the unemployment rate and labor force participation.
Depressed workforce participation combined with record quits levels has created a staffing nightmare for businesses. That’s led to an extremely low level of layoffs and exacerbated the latest impact of omicron on businesses, prompting a host of temporary closures and canceling thousands of flights.
Recent earnings calls suggest ongoing staffing challenges well into 2022. Ara Hovnanian, chief executive officer of Hovnanian Enterprises Inc., said on the homebuilder’s earnings call last month that labor shortages along with supply chain disruptions “are not just impacting the homebuilding industry, but they’re wreaking havoc on just about every industry across the globe.”
Structural factors are at play as well. A combination of declining birth rates, slowing migration and early retirements could lead to years -- even decades -- of worker shortages.
--With assistance from Olivia Rockeman, Kristy Scheuble, Ana Monteiro and Sophie Caronello.
This article was provided by Bloomberrg News.