The Labor Shortage: The Consequences of Paying People Not to Work
A recent study by researchers at Washington University in St. Louis suggests that the labor shortage in the post-pandemic economy is not due to a lack of workers, but rather a decrease in the number of hours worked by employed individuals. The study found that 55% of the drop in labor supply since the pandemic was due to a decline in hours worked, particularly among highly educated men in intensive jobs. This phenomenon, known as "quiet quitting," has been attributed to workers reevaluating their work-life balance and opting for fewer hours or more flexible schedules. The rise of hybrid and remote work has further facilitated this trend. While some companies are attempting to regain control over employees' time, the researchers believe that this shift towards a healthier work-life balance could be the new normal.
