Why this is a problem
Rowe calls the decline in male participation in the workforce “the most chilling metric of all” since it’s “an indication of what's to come.”
Reduced labor force participation has already taken its toll on lower-paying industries — the leisure and hospitality sector has seen the highest quit rate since July 2021, and retail isn’t far behind, reports the Chamber of Commerce.
And durable goods manufacturing, wholesale and retail trade and education and health services are contending with a shortage of skilled workers.
This puts
more pressure on the remaining employees, who may be dealing with longer hours, tougher responsibilities and burnout.
“Running your workers like this — asking them to do 20%, 30% more because you’re short staffed — it’s very much a short-term strategy. You’re going to keep losing people,” Paige Ouimet, a professor at the University of North Carolina’s Kenan-Flagler Business School, told The Washington Post.
Some employers, like restaurants and airlines, are reportedly offering higher wages, although economists say this could be contributing toward inflation — since higher labor costs can drive up prices.
“The U.S. labor shortage will probably have to be solved by some combination of immigration, automation and recession,” writes Eberstadt in an op-ed for The Washington Post, but adds this is “far from likely to reduce popular angst and discontent.”