149 The Financial Implications Of Americans Not Returning To Work After The Pandemic

<p>Millions of lost positions have yet to return to the job market but there are near-record job openings and job growth has been slower than expected in recent months. Enhanced unemployment benefits ended nationwide on Labor Day, and even sooner in many states. So far, evidence suggests benefits didn’t play a big role in sidelining workers.</p><p>Other factors are at play, according to economists. They include Covid health risks, early retirements, care duties, built-up savings, and other frictions. On the surface, conditions may seem ripe for a boom in the U.S. labor market.</p><p>There are still 5 million fewer jobs than before the pandemic but job openings are near record highs. And hourly pay has risen, in some sectors by more than 10% in a year. Meanwhile, enhanced federal unemployment benefits ended on Labor Day (or sooner) and kids are largely back in the classroom. Both enhanced jobless pay and distance learning, it was thought, had been roadblocks keeping people from returning to work.</p><p>However, that boom hasn’t materialized in recent months — at least, not at the rate, many expected. Job growth slowed in September after surging in the spring and early summer, and the labor force shrank.</p><h2>Covid</h2><p>Health risks associated with the ongoing Covid pandemic have clearly played a role in recent months, according to economists.</p><p>Job growth slowed in August and September when caseloads were spiking due to the delta variant. (There were 366,000 and 194,000 new payrolls added those months, respectively, compared to 1.1 million in July and 962,000 in June.)  </p><h2>Early retirements</h2><p>Early retirements have also reduced the pool of available workers. Older adults are at higher risk of severe illness and death from Covid. They may have opted to start drawing Social Security and live off their nest egg instead of taking a risk at work, economists said. Grandparents may have also offered to watch their grandkids and ease childcare duties for working parents.</p><h2>Care responsibilities</h2>