Where did all the workers go?

There are 9.9 million job openings in the U.S., but only 5.8 million unemployed workers.

Hello Financial Healers,

In 2021, we saw a mass exodus of Americans quitting their jobs. It happened at such a rate, some pundits called it “The Great Resignation.”

Today, this trend is reversing, with more people returning to work. (I think it’s because they’ve run out of savings and have no other option.)

The New York Times writes:

Aubrey Moya… 38, became one of the millions of Americans to [quit her waiting job and] start a small business during the pandemic. Today, though… [she] is questioning whether her dream is sustainable. Her husband is making less money, and living costs have risen. Her customers, stung by inflation, aren’t splurging on the boudoir photo sessions she specializes in. She is nervous about making payments on her Fort Worth, Texas, studio.

So, basically, Americans took a risk and couldn’t outlast the poor economy.

How high is unemployment?

The White House boasts low unemployment, but is it really that strong? According to the Bureau of Labor Statics, people are only deemed unemployed if they’re actively looking for work in the 4 weeks preceding the survey.

Those who want to work but haven’t searched for jobs in 4 weeks are considered out of the labor force. This means a lot of potentially unemployed people are not being counted. Author Michael Snyder claims, “The… [White House] continues to tell us that the unemployment rate is less than 4 percent and that there are lot of jobs available for those that want them. But is this really true?”

What’s interesting is some of the 99.800 million people can work. But they choose not to. The Federal Reserve of St. Louis reports, “our analysis of the out-of-labor-force activities… reveals that shifts toward retirement and home care/family care have driven the shortfall in labor force participation.”

Simply put, Americans either retired, or stayed home to be with family, and haven’t come back. My oldest son, Cory, experienced this. When his wife was laid off, she stayed home to raise their child, while Cory took a better job and worked full time. This seems to be the case for many Americans.

Too many openings

The US Chamber of Commerce writes, “the latest data shows that we have 9.9 million job openings in the U.S., but only 5.8 million unemployed workers.” But instead of seeking work, Americans are sitting it out, enjoying retirement, and caring for their families. Will companies be able to coax these people back to work? We’ll have to see.

God bless your Prosperous Soul,
Stephen K. De Silva

Correction: An earlier version of this article included an incorrect data figure, which has been removed.

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About: Stephen K. De Silva is an author, speaker, and financial coach. From 1995 until 2017, he served as the CFO of Bethel Church, and a member of the senior leadership team. Stephen’s blend of experience, training, and gifting make him a pioneer in the subject of money. You can reach Stephen at hello@stephenkdesilva.com