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C. TODAY
Understanding America’s
Labor Shortage: The Most
Impacted Industries By Stephanie Ferguson , Director,
Global Employment Policy & Special Initiatives,
U.S. Chamber of Commerce
The transportation, health care and more, for a quick understanding of the state of the
social assistance, and accommodation workforce in our America Works Data Center.
and food sectors have had the highest
numbers of job openings. Read on for an analysis of which industries have
been impacted the most. An in-depth look at how the
The pandemic caused a major disruption in worker shortage is impacting the nation is here. An
America’s labor force—something many have interactive map tracking the worker shortage across
referred to as The Great Resignation. In 2021, more the states is here.
than 47 million workers quit their jobs, many of
whom were in search of an improved work-life Food service and hospitality struggle to
balance and flexibility, increased compensation, and retain workers
a strong company culture.
But a closer look at what has happened to the labor During the pandemic reshuffling, jobs that require
force can be better described as ‘The Great Reshuffle’ in-person attendance and traditionally have lower
because hiring rates have outpaced quit rates since wages, have had a more difficult time retaining
November of 2020. So, many workers are quitting workers. For example, the leisure and hospitality
their jobs—but many are getting re-hired elsewhere. industry has had the highest quit rate since July 2021,
The U.S. Chamber is capturing the trends on job consistently above 5.4 percent. The quit rate for
openings, labor force participation, quit rates, and the retail trade industry isn’t far behind, with rates
hovering close to 4 percent over the summer.
11 AMCHAM SOUTH CHINA
But at the same time, the hiring rate has been even
higher. Leisure and hospitality lost 956,000 workers
in August 2022, but 1.1 million people were hired
into the industry that same month. In fact, leisure
and hospitality has maintained the highest hiring
rate of all industries since November 2020 fluctuating
between 7 to 9 percent. This is very high compared
to the national hiring rate which has hovered recently
around 4.2 percent.
When taking a look at the labor shortage across
different industries, the transportation, health care and
social assistance, and the accommodation and food
sectors have had the highest numbers of job openings.
Yet despite the high number of job openings,
transportation and the health care and social
assistance sectors have maintained relatively low quit
rates. The food sector, on the other hand, struggles
to retain workers and has experienced consistently
higher than average quit rates.
Meanwhile, in more stable, higher paying industries,
the number of employees quitting has been lower.
A closer look at labor force participation
To further understand shifts in the labor force, it is
interesting to look at labor force participation across
different industries. Some have a shortage of labor,
while others have a surplus of workers.
Understanding America’s
Labor Shortage: The Most
Impacted Industries By Stephanie Ferguson , Director,
Global Employment Policy & Special Initiatives,
U.S. Chamber of Commerce
The transportation, health care and more, for a quick understanding of the state of the
social assistance, and accommodation workforce in our America Works Data Center.
and food sectors have had the highest
numbers of job openings. Read on for an analysis of which industries have
been impacted the most. An in-depth look at how the
The pandemic caused a major disruption in worker shortage is impacting the nation is here. An
America’s labor force—something many have interactive map tracking the worker shortage across
referred to as The Great Resignation. In 2021, more the states is here.
than 47 million workers quit their jobs, many of
whom were in search of an improved work-life Food service and hospitality struggle to
balance and flexibility, increased compensation, and retain workers
a strong company culture.
But a closer look at what has happened to the labor During the pandemic reshuffling, jobs that require
force can be better described as ‘The Great Reshuffle’ in-person attendance and traditionally have lower
because hiring rates have outpaced quit rates since wages, have had a more difficult time retaining
November of 2020. So, many workers are quitting workers. For example, the leisure and hospitality
their jobs—but many are getting re-hired elsewhere. industry has had the highest quit rate since July 2021,
The U.S. Chamber is capturing the trends on job consistently above 5.4 percent. The quit rate for
openings, labor force participation, quit rates, and the retail trade industry isn’t far behind, with rates
hovering close to 4 percent over the summer.
11 AMCHAM SOUTH CHINA
But at the same time, the hiring rate has been even
higher. Leisure and hospitality lost 956,000 workers
in August 2022, but 1.1 million people were hired
into the industry that same month. In fact, leisure
and hospitality has maintained the highest hiring
rate of all industries since November 2020 fluctuating
between 7 to 9 percent. This is very high compared
to the national hiring rate which has hovered recently
around 4.2 percent.
When taking a look at the labor shortage across
different industries, the transportation, health care and
social assistance, and the accommodation and food
sectors have had the highest numbers of job openings.
Yet despite the high number of job openings,
transportation and the health care and social
assistance sectors have maintained relatively low quit
rates. The food sector, on the other hand, struggles
to retain workers and has experienced consistently
higher than average quit rates.
Meanwhile, in more stable, higher paying industries,
the number of employees quitting has been lower.
A closer look at labor force participation
To further understand shifts in the labor force, it is
interesting to look at labor force participation across
different industries. Some have a shortage of labor,
while others have a surplus of workers.
