You've probably heard about — or experienced the effect of — labor shortages. This is the phenomenon of businesses, especially low wage ones, struggling to hire up. The result: You might see some of your favorite restaurants closing earlier, or service slowing.
There's no one reason for labor shortages.
Mismatches between the jobs that are open and the skills that workers have are likely partially responsible; workers are also moving, and leaving jobs behind. And, of course, workers have higher expectations and want more out of work after living through a pandemic.
Labor Secretary Marty Walsh told Insider that he thinks three things are driving shortages: The mere fact of living through unprecedented times, health concerns, and people rethinking what they want out of work.
Importantly, there's a mismatch between between businesses saying they're eager to hire and who's still out of work. For instance, in August, the Black unemployment rate went up, even as businesses said they were scrambling to hire. It's what Dr. William Spriggs — an economics professor at Howard University and the chief economist for the AFL-CIO — said was "the self-evident discrimination in the labor market revealing itself." The Black unemployment rate ticked a bit in September, but still remains elevated.