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Many Americans Stopped Working During the Pandemic, Why?

TEMPO.CO, Jakarta – Americans have stopped working in droves during the pandemic. A number of companies also find it difficult to find workers.

US Department of Labor data states that the number of workers who are out of work jumped to 4.3 million people in August. This figure reached a record high since December 2000, up from 4 million people in July. This figure is equivalent to almost 3 percent of the workforce.

The number of recruits also slowed in August, according to a Labor Department report. The number of available jobs fell to 10.4 million, from a record high of 11.1 million the previous month.

Throughout August and September hiring slowed sharply. While last year, the number of jobs increased by 62 percent.

The number of Americans who have stopped working is due to the corona virus pandemic. The spread of the delta variant is cited as the cause.
Many drivers have stopped driving for fear of being infected with Covid-19, so those who have lost their jobs are not looking for new jobs.

When Covid-19 cases spiked in August, nearly 900,000 people left jobs in restaurants, bars and hotels. This figure is up 21 percent compared to July.

However, in industries such as manufacturing, construction, transportation and warehousing, the number of laid-off employees did not show an increase. Likewise in the service and business sectors such as in the fields of law, engineering, and architecture, which allow employees to work from home, not many workers decide to quit.

Other factors are also likely to contribute. Among other things, the issue of wages makes employees demand higher increases.

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