Why is there so much job vacancy rate now?

90s guy wrote:

I hear mostly conservatives say it’s because “young people don’t want to work.” However does it have to do with covid shutting down the service economy for a year? Is it because there’s simply not enough people for all the jobs? It is amazing to see “Now Hiring” signs everywhere I go.

If the "lazy people living off stimulus money" theory held any water, states that slashed extra unemployment aid and other assistance would have seen better job numbers. They didn't. The theory that public assistance programs have massive incentive effects has always been extremely weak, lacking any credible empirical evidence. That doesn't mean there are some people who have found it easier to not take a job because of extra money they may be getting, but the majority of the mismatch is likely due to high levels of virus continuing to circulate, and constraints being faced by people like lack of child care.

90s guy wrote:

I hear mostly conservatives say it’s because “young people don’t want to work.” However does it have to do with covid shutting down the service economy for a year? Is it because there’s simply not enough people for all the jobs? It is amazing to see “Now Hiring” signs everywhere I go.

Also, it takes time for the economy to work out labor market disequilibria; the current situation is nothing new really (though the vacancies might be heightened), especially considering that we're in an economy recovering from a pandemic.

It had a lot to do with covid shutdowns and a lot to do with schools going remote and a lot to do with free money (rental assistance and welfare and extra covid programs) allowing people to survive and not work. 🤷‍♂️

Film Rep wrote:

It had a lot to do with covid shutdowns and a lot to do with schools going remote and a lot to do with free money (rental assistance and welfare and extra covid programs) allowing people to survive and not work. 🤷‍♂️

How much free money are we talking about? I received a few thousand dollars total in “covid money.” However how does one survive on just a few thousand dollars a year? Do these people “not working because of free money” not have cars, cell phones, tv…? They live in rent free apartments and stare at the wall all day? Something just doesn’t add up?

90s guy wrote:

Film Rep wrote:

It had a lot to do with covid shutdowns and a lot to do with schools going remote and a lot to do with free money (rental assistance and welfare and extra covid programs) allowing people to survive and not work. 🤷‍♂️

How much free money are we talking about? I received a few thousand dollars total in “covid money.” However how does one survive on just a few thousand dollars a year? Do these people “not working because of free money” not have cars, cell phones, tv…? They live in rent free apartments and stare at the wall all day? Something just doesn’t add up?

A couple rents an apartment together. Both usually work. One decides not to work because rental assistance or school is remote and they have to take care of the children.

Maybe labor participation is down because vaXXX mandates.

Lets say you have a married couple. Each makes roughly 40k-50k per year. Pre-covid they both work. After covid one decides to not work because they can still survive on one salary.

Maybe folks who are on unemployment are a little motivated to search for employment. Maybe do just enough searching to meet requirements for welfare.

Tack on the student loan cancelling to the free money train.

This is an really interesting subject.

My theory is, that it's not worth it to work for so less money. There is the term of: "The cost of doing business", it includes not just the paint (if you are a painter for example) but also the costs for insurance, car maintenance, brushes ...

The same is true for employees. Nowadays everybody is expected to have a working car, a i phone..... A minimum wage is not cutting that anymore.

And than there is Amazon which took over a lot of workers in warehouse jobs for a much higher wages.

I am sure things are much more complex but this could be some of the reasons.

Here is one explanation:

https://www.theguardian.com/commentisfree/2021/oct/13/american-workers-general-strike-robert-reich

I think you nailed it. People have reevaluated what they find important, and for many, a second income is not. Further, many younger workers have decided to live with parents and not work a crappy job for crappy pay. It just isn't worth it to them.

Karl Marx is coming to town wrote:

This is an really interesting subject.

My theory is, that it's not worth it to work for so less money. There is the term of: "The cost of doing business", it includes not just the paint (if you are a painter for example) but also the costs for insurance, car maintenance, brushes ...

The same is true for employees. Nowadays everybody is expected to have a working car, a i phone..... A minimum wage is not cutting that anymore.

And than there is Amazon which took over a lot of workers in warehouse jobs for a much higher wages.

I am sure things are much more complex but this could be some of the reasons.

Here is one explanation:

https://www.theguardian.com/commentisfree/2021/oct/13/american-workers-general-strike-robert-reich

Yeah this is interesting. There’s an Amazon distribution center near me and it does seem to grab that 15-20 dollar low skill range employee. There’s just so many jobs to be had in that company.

Then there’s the fast food, retail, service type jobs that typically pay 10-12. It makes sense that people want nothing to do anymore with these low pay type of jobs.

Child care is expensive so you’re basically paying yourself to take care of your own kids.

I think one thing to note is that nearly all the jobs vacancies I’ve seen require no education. With the easy access to education through online classes it makes sense to get those degrees. Another reason people are stirring clear of dead end jobs.

Steering clear

Karl Marx is coming to town wrote:

This is an really interesting subject.

My theory is, that it's not worth it to work for so less money. There is the term of: "The cost of doing business", it includes not just the paint (if you are a painter for example) but also the costs for insurance, car maintenance, brushes ...

The same is true for employees. Nowadays everybody is expected to have a working car, a i phone..... A minimum wage is not cutting that anymore.

And than there is Amazon which took over a lot of workers in warehouse jobs for a much higher wages.

I am sure things are much more complex but this could be some of the reasons.

Here is one explanation:

https://www.theguardian.com/commentisfree/2021/oct/13/american-workers-general-strike-robert-reich

I waited 20 minutes at the Sawmill Road Wendy's in Columbus but I wasn't upset. The workers were doing the best they could at 7 p.m. today. They only had THREE workers in the entire store and the dining room was shut down. I'm a patient person so I had no problems but the cars behind me all pulled off and gave up, and one even in front of me gave up after 15 mins.

That's what I'm discovering in the mortgage industry. Many of the workers in the mortgage industry may have certs but a lot of the jobs on the back-end processing side don't require a college degree--many are CSR or data-entry roles. Other than loan officers and processors (who have to take the SAFE Act test, which is difficult), the majority of jobs in the mortgage industry are just data entry and data management.

Some old white guy wrote:

Film Rep wrote:

A couple rents an apartment together. Both usually work. One decides not to work because rental assistance or school is remote and they have to take care of the children.

Maybe labor participation is down because vaXXX mandates.

Lets say you have a married couple. Each makes roughly 40k-50k per year. Pre-covid they both work. After covid one decides to not work because they can still survive on one salary.

Maybe folks who are on unemployment are a little motivated to search for employment. Maybe do just enough searching to meet requirements for welfare.

I think you nailed it. People have reevaluated what they find important, and for many, a second income is not. Further, many younger workers have decided to live with parents and not work a crappy job for crappy pay. It just isn't worth it to them.

Back in the '90s and '00s, when life was good, you were considered a loser if you lived with your parents and had debt. It's more accepted nowadays.

"I hear mostly conservatives say..."

You need to see an audiologist!

People still hunkered down afraid of Covid.

People still have Biden bucks.

People lost their jobs due to covid and can't find same level.

People got used to not working and trying to make it permanent lifestyle.

Older people lost their job due to covid and no one wants to hire old folks.

one if by land wrote:

People still hunkered down afraid of Covid.

People still have Biden bucks.

People lost their jobs due to covid and can't find same level.

People got used to not working and trying to make it permanent lifestyle.

Older people lost their job due to covid and no one wants to hire old folks.

Right, I know a ton of people with advanced degrees who lost their jobs and got jobs that are not even close to replacement-level income that they had before 2020. Plus they all are stuck with student loans too.

Working 2-3 jobs is becoming the norm for some, in order to make ends meet. The problem with this is, even if you are stuck working retail or fast food to survive (2-3 incomes), employers may see that on your LinkedIn and pigeonhole you as a retail/service worker, even if your background was something else, like healthcare or STEM even.

BOSTON Billy wrote:

"I hear mostly conservatives say..."

You need to see an audiologist!

Like most things nowadays this seems to be another political hot topic. I’m personally more politically moderate, so am willing to listen to it all. However I do think many view points on this are rooted in political view points and not actual facts. I’m more interested in the facts as to why there’s “help wanted” signs everywhere I go. Now I realize there’s not just one answer. However if anyone can point to data it would be greatly appreciated.

jecht wrote:

Some old white guy wrote:

I think you nailed it. People have reevaluated what they find important, and for many, a second income is not. Further, many younger workers have decided to live with parents and not work a crappy job for crappy pay. It just isn't worth it to them.

Back in the '90s and '00s, when life was good, you were considered a loser if you lived with your parents and had debt. It's more accepted nowadays.

It was 1990 when I graduated from college and started my life on my own for real. It was not easy then, but we made our way and are doing well now. It isn't as easy today, but it should be. Covid changed a lot about how people view the world.

90s guy wrote:

BOSTON Billy wrote:

"I hear mostly conservatives say..."

You need to see an audiologist!

Like most things nowadays this seems to be another political hot topic. I’m personally more politically moderate, so am willing to listen to it all. However I do think many view points on this are rooted in political view points and not actual facts. I’m more interested in the facts as to why there’s “help wanted” signs everywhere I go. Now I realize there’s not just one answer. However if anyone can point to data it would be greatly appreciated.

If you are truly one who is willing to listen, don't frame your premise in a political light that makes one side look bad.