Stephanie Ferguson
Director, Global Employment Policy & Special Initiatives, U.S. Chamber of Commerce
Published
September 27, 2024
Our workforce by the numbers
The labor shortage gap is closing, but still persists. Right now, there are too many jobs without people to fill them. As a result, businesses can’t grow, compete, and thrive. The U.S. Chamber and Chamber Foundation's America Works initiative is mobilizing business and government to swiftly address the crisis.
This page captures the trends on job openings, labor force participation, quit rates, and more, for a quick understanding of the state of the workforce. Take a look at the numbers to see what is causing the worker shortage and learn which states and industries have been impacted the most.
The U.S. has lost millions of workers.
The latest jobs report from the Bureau of Labor Statistics showed that thousands of people are entering the workforce. In June 2024, the labor force participation rate for prime working-age individuals, defined as those between the ages of 25 and 54, was 83.7%, marking a twenty-year high. Despite this, however, total labor force participation does not match what it was before the pandemic.
If the percentage of people participating in the labor force were the same as in February 2020, we would have millions more people in the workforce today—and this shortage is impacting all industries in nearly every state. If every unemployed worker took an open job in their industry, there would still be millions of open jobs.
Where did the workers go? During the COVID-19 pandemic, early retirements and less immigration have left the nation with a worker deficit. Plus, boosted unemployment benefits, stimulus payments, and child tax credits offered during the pandemic padded the finances of some previously employed workers, and they no longer need to work, or in some cases, people have adjusted to a single-income household lifestyle.
- Analysis: Learn the industries impacted the most
- Download the Data: America Works Data
We have a lot of jobs, but not enough workers.
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7.7M
open jobs in the U.S.
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7.1M
unemployed workers in the U.S.
If every unemployed person in the country found a job, we would still have millions of open jobs.
How did this happen? At the height of the pandemic, more than 120,000 businesses temporarily closed, and more than 30 million U.S. workers were unemployed. Since then, job openings have continued to climb while unemployment has slowly declined.
- Analysis: Learn the reasons behind the worker shortage
- Download the Data: America Works Data
The gap between open jobs and unemployed individuals is wide, but slowly narrowing. High inflation is driving down savings accounts Americans built up over the pandemic, driving a need for many to return to the workforce. On the other hand, businesses that staffed up heavily during the pandemic are now re-adjusting to the new normal pace. That has resulted in some layoffs and a slowing in hiring in certain industries. But those situations are not representative of the broader job market.
Most states are feeling the impact of the worker shortage.
-
93
workers for every 100 open jobs in the U.S.
The Chamber’s Worker Shortage Index number indicates the number of available workers for every job opening using data from the Bureau of Labor Statistics (BLS).
South Dakota, with the lowest ratio of 0.38, is suffering the most and finding workers is proving challenging for businesses. California, Illinois, Michigan, Nevada, New Jersey, Rhode Island, Texas, New York and Washington are the only states with a Worker Shortage Index equal to or above 1, meaning the state had more available workers than job openings in July. However, a labor surplus does not ensure that all positions will be occupied, as workers may not necessarily be located in the geographic areas or industries where the open positions are situated.
- Analysis: Visit our interactive state map tracking the worker shortage
- Download the Data: America Works Data
The Great Resignation Is More like ‘The Great Reshuffle’
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2.1%
national quit rate
-
3.5%
national hiring rate
The Great Resignation has pulsed through media headlines. However, ‘The Great Reshuffle’ is a more accurate explanation of the changes taking place in the workforce. The rate at which employees quit their jobs has grown drastically since November 2020 but is trending downward. At the same time, hiring continues to outpace quits. High quit rates coupled with even higher hiring rates shows that workers are leaving their current employer for a new one—often in search of higher pay, more growth opportunities, or a change in industry and culture.
- Analysis: Learn the reasons behind the worker shortage
- Download the Data: America Works Data
Job openings have largely increased in most states since February 2020.
While most states have more job openings today than before the pandemic, job openings are slowing down across the country. States, on average, had an 18% job opening increase February 2020 to July 2024 – a sign that businesses are still creating jobs across the nation.
- Analysis: Visit our interactive state map tracking the worker shortage
- Download the Data: America Works Data
The Great Reshuffle has affected some industries more than others.
-
3.9%
quit rate for leisure and hospitality sector
-
1.4%
quit rate for the financial activities sector
The Great Reshuffle has affected some industries more than others. Workers in traditionally lower-paying industries, including leisure and hospitality and retail, have been most likely to quit their jobs. Meanwhile, in more stable, higher-paying industries, the number of employees quitting has been lower.
- Analysis: Learn the industries impacted the most
- Download the Data: America Works Data
Employers are responding quickly to the worker shortage, deploying new strategies to attract and retain a talented workforce. As the labor market continues to shift, and workers obtain new skills to gain employment in different industries, our labor pools take different shapes.
Workers in industries that require specialized skills or training, like financial activities and durable goods manufacturing, are experiencing relatively low unemployment rates. Conversely, workers in industries that offer a large number of entry-level jobs—leisure & hospitality and wholesale & retail trade—have unemployment rates greater than the national average.
Hourly pay has leveled out.
Worker shortages, unfilled jobs, and inflation are impacting not just employers, but employees, too. As labor market demand shifts, so does pay. Hourly pay increased across the board in the summer of 2021 and spring of 2022 but has since leveled out into 2024.
The Instawork Pay Signal Index shows the change in business’s hourly pay. Readings below 50 indicate more businesses lowering wages than raising them, and the opposite for readings above 50.
Through the America Works Initiative, we’re helping employers across the country develop and discover talent to fill open jobs and grow our economy. For more information on the America Works Initiative contact Stephanie Ferguson at sferguson@uschamber.com.
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About the authors
Stephanie Ferguson
Stephanie Ferguson is the Director of Global Employment Policy & Special Initiatives. Her work on the labor shortage has been cited in the Wall Street Journal, Washington Post, and Associated Press.
Isabella Lucy
Isabella has created stunning visualizations tackling pressing issues like the worker shortage, the benefits of hiring veterans, the lifespan of small businesses, and the future of work.
