Why America has 8.4 million unemployed when there are 10 million job openings

[mahatmakanejeeves]

Economy

Why America has 8.4 million unemployed when there are 10 million job openings

The economy is undergoing massive changes. There’s a big mismatch at the moment between the jobs available and what workers want.

By Heather Long, Alyssa Fowers and Andrew Van Dam
Yesterday at 9:00 a.m. EDT

CORRECTION

A previous version of this article and an accompanying chart overstated the number of leisure and hospitality job openings in June. There were 1.7 million, not 3.5 million.

A mystery sits at the heart of the economic recovery: There are 10 million job openings, yet more than 8.4 million unemployed are still actively looking for work.

The job market looks, in some ways, like a boom-time situation. Business owners complain they can’t find enough workers, pay is rising rapidly, and customers are greeted with “please be patient, we’re short-staffed” signs at many stores and restaurants.

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From the White House to the local Waffle House, there’s a struggle to understand what is going on — and what’s likely ahead.

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This weekend, the employment crisis will hit an inflection point as many of the unemployed lose $300 in federal weekly benefits and millions of gig workers and self-employed lose unemployment aid entirely. Some anticipate a surge in job seekers, though in 22 states that already phased out those benefits, workers didn’t flood back to jobs.



At heart, there is a massive reallocation underway in the economy that’s triggering a “Great Reassessment” of work in America from both the employer and employee perspectives. Workers are shifting where they want to work — and how. For some, this is a personal choice. The pandemic and all of the anxieties, lockdowns and time at home have changed people. Some want to work remotely forever. Others want to spend more time with family. And others want a more flexible or more meaningful career path. It’s the “you only live once” mentality on steroids. Meanwhile, companies are beefing up automation and redoing entire supply chains and office setups.

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By Heather Long
Heather Long is an economics correspondent. Before joining The Washington Post, she was a senior economics reporter at CNN and a columnist and deputy editor at the Patriot-News in Harrisburg, Pa. She also worked at an investment firm in London. Twitter https://twitter.com/byHeatherLong

By Alyssa Fowers
Alyssa Fowers is a graphics reporter for The Washington Post. Twitter https://twitter.com/alyssafowers

By Andrew Van Dam
Andrew Van Dam covers data and economics. He previously worked for the Wall Street Journal, the Boston Globe and the Idaho Press-Tribune. Twitter https://twitter.com/andrewvandam

[grumpyduck]

1. I'm sorry, but, from talking with HR

people over the past few years, part of the equation is the pressure many of them are under to find people who meet the job description to a T. And automated systems that scan resumes and look for key words are just making it worse.

There are few things in life more frustrating than applying for a job you know you can do, and having the qualifications, and being told that you're overqualified. Which means, often, that they assume you'll want more money than they can offer, or that you're too old. This too from HR people and online job-hunting boards. And try proving that you were passed over because of age.

That's not the only reason, but it's one that needs to be mentioned.