Nicholas Anway is a student at Harvard Law School.
In today’s news and commentary: We’re in the midst of a “structural” labor shortage, giving workers bargaining power.
“It feels like we have a structural labor shortage out there,” said Federal Reserve Chair Jerome Powell late last week. And according to Business Insider, the tight labor market is a source of worker power. There are just under 4 million more jobs than workers in the labor force, the Fed reported; the aggregate labor force participation rate remains stuck below pre-pandemic levels. Powell pointed to three factors as driving the worker shortage. First, “accelerated retirements”: Goldman Sachs estimated that of the 2.5 million people who retired during the pandemic, 1.5 million retired early. Second, Powell emphasized the pandemic’s tragic effects on workers, explaining that “[c]lose to half a million who would have been working died from COVID.” Third, the market is “missing” over one million immigrant workers, according to Giovanni Peri, the director of the Global Migration Center at the University of California at Davis. “If you ask businesses, you know, pretty much everybody you talk to says there aren’t enough people,” Powell said. The labor market demand, reports Insider, means that “employers are still offering more in attempts to get workers.”
Daily News & Commentary
Start your day with our roundup of the latest labor developments. See all
October 15
New reporting examines the rollback of child labor protections; California tries to block a strike; NLRB charges Wisconsin mental health provider with firing workers during union drive.
October 14
Eleventh Circuit overturns ERISA exhaustion rule; DHS finalizes removal of automatic renewal for work permits; AFGE challenges SSA over flexible scheduling policy.
October 13
Chicago hotel workers remain on strike; a coalition of Democratic states sues the Labor Department over canceled unemployment insurance grants; the Federal Labor Relations Authority establishes a new mediation framework for federal worker disputes.
October 12
Workers at the Obama Foundation begin organizing; MLB submits its latest collective bargaining agreement proposal; Brigham & Women's nurses postpone strike.
October 11
UAW President Shawn Fain succeeds in his reelection bid, and Spanish unions call for a general strike.
October 9
DHS proposes a $100k fee for the foreign grad employment program; Trump suspends tech company access to green card program; and private equity perpetuates poor working conditions for home care workers.