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
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July 12
Postal workers demand investigation into Atlanta distribution center conditions following deaths; University of Chicago Press Workers vote to unionize.
July 10
Brigham and Women’s Hospital locks out 4,000 nurses after one-day strike; appeal filed challenging agency-shop agreements.
July 9
The Second Circuit declines to vacate an arbitration award over a nursing union dispute; federal workers sue the Department of Defense for termination of union contracts; New York City announces settlement with companies for violating New York work laws.
July 8
DOL plans to make changes to the PERM immigration program; three-day hearing on proposed forced-labor tariffs is underway; Mamdani recovers $2.3M in corporate settlements.
July 7
Former EEOC Commissioner drops her wrongful termination lawsuit following the Supreme Court’s ruling on Presidential removal power; unions sue Department of Defense over cancellation of collective bargaining agreements.
July 6
NY home health worker class action settlement secures preliminary approval; the NLRB upholds order finding Amazon violated federal labor law.