Easing into the post-pandemic environment has not been so easy on the jobs front — the labor force has withered in Arkansas and across the U.S. Jobs are plentiful across Arkansas and the nation, so that’s not the issue. Complications from covid appear to continue to hinder the rebuilding of a full labor pool to fill those jobs. During covid’s peak, workers were thrown off the job primarily out of health concerns. Businesses reopened, and a great majority are either encouraging or mandating that employees return to the office to keep their jobs. Many potential workers, however, remain on the sidelines.
Businesses raised wages, offered incentive pay and bonuses — all in an effort to fill open jobs. Many workers still stayed away, creating huge gaps in the available labor pool. Though Arkansas’ labor force remains below pre-pandemic levels, participation has shown a gradual increase throughout this year. Nevertheless, state officials estimate upwards of 100,000 jobs remain unfilled. Now, a new study from the National Bureau of Economic Research reveals that the U.S. labor force, still recovering from the pandemic, remains down by 500,000 workers who became ill with a covid-related sicknesses that kept them out of work. That will likely persist if the virus continues to sideline workers at current rates. Moreover, the study finds that the per-year value of the lost labor supply is about $62 billion — roughly half of estimated losses caused by cancer or diabetes.
