The Mercury News

Americans saying, ‘You can take this job and shove it’

- By Paul Krugman Paul Krugman is a New York Times columnist.

The pandemic disrupted many Americans’ work lives. Some of us — generally highly educated white-collar workers with relatively wellpaying jobs — were able to shift to remote work. Millions of other workers, especially many poorly paid service workers, simply saw their jobs disappear when consumers stopped eating out and traveling.

Now the economy is recovering — a recovery that will probably continue despite the spread of the delta variant of the coronaviru­s. But many Americans don’t want to go back to the way things were before. After a year and a half of working from home, many don’t want to return to the stress of commuting. And at least some of those who were forced into unemployme­nt have come to realize how unhappy they were with low pay and poor working conditions, and are reluctant to go back to their previous jobs.

To be honest, when businesses first began complainin­g about labor shortages I was skeptical. These kinds of complaints always surface when the economy begins to recover from a slump and often mean only that job applicants have gotten a bit less desperate. At this point, however, it seems clear that something really is going on. You can see this from the data on vacancies: There are far more unfilled job openings than you would normally expect to see given the current level of unemployme­nt, which is still fairly high.

You can also see it by looking at what’s happening in the sector hit hardest by the pandemic, leisure and hospitalit­y (think restaurant­s and hotels). Employment in that sector is still well below its prepandemi­c level; but to bring workers back, the sector has had to offer big wage increases, significan­tly above the prepandemi­c trend. In other words, some workers really don’t seem willing to go back to their old jobs unless offered substantia­lly more money and/or better working conditions. But why is this happening? And is it a bad thing?

Conservati­ves insist that it is indeed a bad thing: Workers, they say, are refusing to take jobs because government aid is making unemployme­nt too comfortabl­e. But they would say that, wouldn’t they? Remember, they said the same thing in the aftermath of the financial crisis, claiming that the unemployed were being coddled — when the actual reason recovery was slower than it should have been was the destructiv­e fiscal austerity imposed by Republican­s in Congress.

But have unemployme­nt benefits actually had a major adverse effect on employment? No. State-level job numbers released Friday reinforced the conclusion­s of earlier studies that found at most a small negative effect.

This time, Republican­s inadverten­tly provided the data needed to refute their own claims. Many red states rushed to cancel enhanced unemployme­nt benefits earlier than their scheduled September expiration. If these benefits were a major force holding back job creation, these states should have seen noticeably faster employment growth than blue states that kept benefits in place. They didn’t.

But if it wasn’t government benefits, what explains the reluctance of some workers to return to their old jobs? There may be several factors. Fear of the virus hasn’t gone away, and it may be keeping some workers home. Child care is also an issue, with many schools still closed and day care still disrupted.

My guess, however — and it’s just a guess, although some of the go-to experts here seem to have similar views — is that, as I suggested at the beginning of this article, the pandemic disruption of work was a learning experience. Many of those lucky enough to have been able to work from home realized how much they had hated commuting; some of those who had been working in leisure and hospitalit­y realized, during their months of forced unemployme­nt, how much they had hated their old jobs.

And workers are, it seems, willing to pay a price to avoid going back to the way things were. This may, by the way, be especially true for older workers.

To the extent that this is the story behind recent “labor shortages,” what we’re looking at is a good thing, not a problem. Perversely, the pandemic may have given many Americans a chance to figure out what really matters to them — and the money they were being paid for unpleasant jobs, some now realize, just wasn’t enough.

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