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18 May. 2021 | Comments (0)
US employers added 266,000 jobs in April. Overall, this is a huge miss compared to economists’ expectations of a six-figure hiring boom as parts of the economy begin to fully reopen. Fear of becoming infected with COVID-19, remote schooling and the ensuing childcare crisis, and elevated unemployment insurance benefits are temporarily constraining the labor supply, explained Frank Steemers, Senior Economist at The Conference Board. Gad Levanon, Vice President of Labor Markets at The Conference Board, added that, while recruiting and retention difficulties may ease later this year, in the longer-term by 2023, unemployment rates will likely be very low and sustained labor shortages will make a comeback.
Elizabeth Crofoot, Senior Economist at the Committee for Economic Development of The Conference Board (CED), noted that rapid technological adoption during the pandemic has increased the demand for higher skilled workers, further exacerbating talent shortages. She highlighted takeaways from CED’s report “A US Workforce Training Plan for the Postpandemic Economy,” which provides recommendations for business leaders on how they can help prepare workers for in-demand skills and jobs.