What I’ve read:
- Some parents were forced to stay home to care for their kids during Covid, found ways to reorder their lives, and decided they preferred the new arrangement and exited the workforce.
- Some folks still fear Covid, and aren’t willing to go back to close quarters with co-workers, especially true for low wage jobs (like fast food).
- Some older workers gave up and retired. Older teachers, nurses, daycare, pilots/flight attendants, truck drivers, small business owners ruined by Covid restrictions (I know several personally), etc.
- Some lower wage job holders decided the low pay wasn’t enough to put up with work BS, to go in another direction, newly discovered side hustles became jobs. Social media has made new careers some older generations don’t recognize, influencers, YouTubers, drone photography, etc.
Covid forced many people to change their lives, and a significant number of them decided the new arrangement was acceptable.
All of this is true, and more.
Nearly 1 million Americans have died of COVID. Many were elderly but not all were. Plenty were still in the workforce. Those workers aren't ever coming back.
The last thing I read said that over 3 million more people retired than historical trends would have accounted for. Maybe a small percentage will go back to work but most of those workers are probably gone for good.
Many people were forced out of their jobs due to COVID closures. They had to find other work so they're likely never going back to the jobs they previously held.
Many people moved to gig work, as noted earlier. When I go grocery shopping each week, I think I see more Instacart workers than I do regular shoppers like me. A lot of people switched to grocery delivery or curbside pickup due to COVID and liked it so much they are sticking with it. That has boosted the need for paid shoppers. The same goes for Uber Eats and Door Dash and Caviar and GoPuff and other food and household item delivery services. Heck, my wife switched to curbside pickup or delivery from Target and Walmart and has continued to shop that way even though we are comfortable going into the stores now. Services like Fiverr are also a means for people to earn from the comfort of their homes.
Many people used the forced change to chart their own course and start their own businesses. Ebay is a prime example but also Poshmark and Mercari and Etsy and others. Especially for lower income workers, it's quite easy to replace that income via online sales. Making 30K or so on ebay is something nearly any able-bodied person can do.
Then there are people who simply aren't going back to work. That is predominantly women who have left the workforce due to child care issues. Many day cares closed permanently over the past 2 years. Once they were forced to do without, many families found that by eliminating the day care expense, commuting costs, clothing costs, and trimming some other household expenses like dining out, they could manage just fine without the 2nd income. I also know a number of people personally who pulled their kids out of school due to COVID and switched to either home schooling or a virtual school so one parent needs to be home with them.
On the young end of the scale, a lot of high school seniors opted to take a gap year rather than start college virtually, and some existing college students did the same. That means there will be a delay in those folks hitting the labor market after graduation. They may pick up some temporary work during the gap year but they won't launch into their careers for an extra year.
So lots and lots of reasons behind the labor shortage, and I've only touched on some of them.
YMMV
