The 2021 labor market has been a head-scratcher, with both a strong recovery and more job openings than unemployed workers
An Amazon employee in a warehouse in Illinois. One labor shock from the pandemic was the millions who lost their jobs. The other shock was those who kept theirs but found them fundamentally changed.The 2021 labor-market story should have been one of a strong—if incomplete—recovery. The unemployment rate fell to 4.2% in November after ending 2020 at 6.7%. The economy gained more than 555,000 jobs a month on average.
Instead, 2021 has been a head-scratcher. Since May, there have been more job openings than unemployed workers. Three million people still haven’t returned to the labor force. Quits reached a high in September, when 3% of all workers left their jobs. In September and October, hires were 4.4%—suggesting an incredible rate of job switching.
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