Good news for Joe Biden: America is getting back to work
“The easing of the Delta wave will reduce disruptions to schools and encourage businesses to resume hiring,” said Glassdoor Senior Economist Daniel Zhao. “The latest wave has not completely receded, though, so gains are still likely to be muted compared to the summer’s hot jobs growth.”
During that summer hot streak, the US economy added 2.7 million jobs between May and July.
That said, no matter how good Friday’s report turns out to be, it won’t solve America’s worker shortage.
Worker shortages will persist
As the economy reopened fully over the summer and consumer demand went through the roof, businesses stepped up their hiring efforts. That created a labor market in which workers have their pick of jobs, making business work harder to attract and retain staff.
The reopening of schools — along with the expiration of enhanced pandemic-era unemployment benefits at the start of September — may have pushed some Americans back into the workforce since the summer, “but not enough to meet the high labor demand,” Zhao said.
“Employers are likely to continue to raise wages in shortage-affected sectors, though at a slower pace than during the summer,” he added.
The culprit for the bad mood is high inflation as well as the supply chain bottlenecks that have crippled global logistics this year.