Despite easing pandemic fear, labor shortages remain a concern for U.S. employers. A new report from the U.S. Chamber of Commerce finds that job openings are beginning to increase across the nation, however the number of people in the labor force continues to fall.

During the pandemic, more than 30 million people were unemployed. Since the end of the pandemic, more than 4.5 million jobs have been added to the workforce. This has not been enough to restore the labor force, with approximately 1.4 million fewer Americans working compared to February 2020.

The labor force participation rate has fallen from 63 percent in February 2020 to 62.8 percent. Many workers are reprioritizing with 27 percent reporting they need to focus on home and childcare, making returning to work difficult. An additional 28 percent have reported that illness and poor health is making it hard to return to work.

In May 2021, the U.S. Chamber of Commerce conducted a poll of unemployed individuals who had lost their jobs during the pandemic. Among the key findings were a realignment of workers’ needs and expectations of returning to work.

  • 66 percent of Americans who became unemployed during the pandemic were only somewhat active or not very active at all in searching for a new job.

  • 52 percent of those who lost their full-time job during the pandemic agreed that it is essential to return to full-time work as soon as possible, while 26 percent said it would never be essential.

  • Nearly one in five have altered their livelihood, 17 percent have retired, 19 percent have transitioned to homemaking, and 14 percent are now working part-time.
Other factors influencing workers' decision to return to work are remaining concerns about COVID-19 as numbers begin to rise again, as well as low pay or lack of skills and education to join the workforce again.

The labor shortage has also been driven by more than 3 million adults leaving the workforce due to retirement. Between Q3 2019 and Q3 2021 the number of adults over 55 who left the workforce rose from 48 percent to 50 percent.

Many families cited lack of access to childcare as a reason for remaining out of the workforce. Meanwhile, more than 3 million people left their jobs during what was deemed the Great Resignation, however hiring has been able to outpace quitting. Experts at the Chamber of Commerce believe the next step in addressing the labor shortage is to implement solutions to attract and retain new workers.