![]() ![]() ![]() As we have reopened, there are fewer job seekers in areas where there are rising employment opportunities. During the pandemic, individuals have also relocated to different areas of the country. The strong markets and increased asset values have allowed individuals to step back, review goals and determine that the option to retire is available to them. In addition, there has been a substantial number of people deciding to retire and not return to the workforce following the pandemic. Our economy is dependent on immigration to continue growth in the working population, and the decline in ‘new’ workers certainly has impacted the current employment picture. With closed economies and limited international travel, the number of immigrants declined dramatically from a little over 1 million per year to less than 250,000 in 2020, leading to a shortage of available workers. There are several other reasons for the shortage of workers, too, including lower immigration over the last 18 months. The real impact will be seen after the federal subsidy ends on September 6, and the extra funds are no longer being received in any state. ![]() The impact on employment numbers should show up in new jobs created in July and August. Yes, the extra benefits could be part of the problem, and several states have recently ended the federal subsidy to the unemployed. There is a belief by many that the extra unemployment benefits are the reason for the worker shortage but in reality, there is more to it. Everywhere you go, there are Help Wanted signs with promises of signing bonuses and higher wages than previously offered. One of the challenges in this economic recovery for businesses is the ability to fill open positions. The economy is firing on all cylinders with demand from both consumers and businesses. Growth in the 1st quarter exceeded 6% annualized, and we wouldn’t be surprised to see a similar, if not higher, level in the 2nd quarter. Pent-up demand for social interaction and travel is driving the services area of the economy with strong airline and hotel bookings. This has also carried over to the economic environment. As the economy has reopened and face-to-face interaction has increased, it certainly has been wonderful to see the optimism and positive exchanges between individuals. You don’t realize to what extent humans need personal interaction until you have been deprived of it and suddenly it is at your doorstep again. ![]()
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