Plenty of jobs but no workers.

The COVID pandemic has been prevalent in the global economy for just over two years now but although there seems to be plenty of job opportunities where is the available labour? According to a recent report from the IMF there are various reasons for this:

  • Reduced labour force participation: disadvantaged groups, the low-skilled, older workers, or women with young children—have yet to fully return to the labour market.
  • The pandemic: health concerns and favourable pension plan valuations have contributed to a lot of older workers departing the labour force
  • Worker preference: workers are moving away from some low-pay jobs. A lot workers in contact -intensive, physically strenuous and less flexible jobs are moving into other areas or have left the labour force.
  • Occupational mismatch: due to COVID some industries and firms have cut back on production due a lack of demand for their products/services or can’t function in the pandemic environment. As a result in a mismatch between those that are looking for work and the requirements of the labour market.
  • Border restrictions means limited immigration: this has led to large shortages of labour especially in primary industries and other low-paid jobs
  • Changing job preferences: COVID-19 affected hospitality work in particular and although the industry maybe recovering health concerns may be discouraging workers from keeping such jobs and job seekers from taking them up, leaving many vacancies unfilled
Source: Deloitte Insights – The global labor shortage

For more on Unemployment view the key notes (accompanied by fully coloured diagrams/models) on elearneconomics that will assist students to understand concepts and terms for external examinations, assignments or topic tests.

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