Research Plan: worker shortage after the pandemic

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After the pandemic, there are attempts by businesses and the economy to recover. There are millions of jobs but there is a Worker Shortage after the pandemic. According to literature the demand for higher pay and the mismatch between jobs open and the employees available. These reasons are responsible for the current Worker Shortage after the pandemic. There is a large number of factors that are cited as causes of worker shortage after the pandemic. These include high-income support on willingness to find and take up jobs, a mismatch between the types of jobs that are available and the ability of people to fill them, and older workers withdrawing from the labor force (1). A combination of these factors has been responsible for the worker shortage after the pandemic. Studies also say that mothers of young children have also left the workforce because of continuous disruptions to school and children.

The impact of worker shortage after the pandemic is devastating. The prices of clothing and groceries have increased. There are rising wages in competitive industries, rising inflation, and firms passing wage costs onto consumers. For example, the cost of certain computer-related electronic parts increased after the pandemic. The companies are increasing wages to increase labor supply and are also increasing productivity. Even now there is some evidence that technology and capital are being used to replace workers (2). A greater worry is that US firms will move production overseas where there is a better supply of workers. One of the main impacts of the shortage of workers after the pandemic is that there will soon be a shortage of goods and services. Also, the labor shortage can persist for a great deal longer than what the Federal Reserve expects.

In the US after the pandemic, the economy has to regain lost economic output but the employment remains 5 million below the level of 2020 February. This means that even though the economy has recovered employment is lower. There are more than 10 million job vacancies and companies raising pay to attract employees but the supply of workers is lower. This has the impact of reducing output and increasing inflation in the economy. One of the explanations is that households now have ample savings and do not have the urgency to return to work. The other reasons are that several older workers have taken early retirement. Other reasons are that the increasing stock market has increased 401k pension plans and has made early retirement an attractive option. Also, for those with surging pension plans returning to work and daily going back and forth to the office is not an attractive option. In addition, workers have become scarce because borders have closed making immigration difficult and slower birth rates mean few young workers entering the workforce. Another problem is that after the pandemic companies are facing a higher quit rate which means that companies will have to raise pay to retain the staff they currently have.

The purpose of the study is to explore the reasons why there is a worker shortage after the pandemic. The purpose of the study is also to understand if the demand for higher pay and the mismatch between jobs open and the employees available are responsible for Worker Shortage after the pandemic. The study will seek to find out as many reasons as possible and provide an in-depth explanation of why there is a shortage of workers.
The significance ...