But where did they go?
Labor issues are a driving force behind central bank policy, as they play a key role in when and how these financial institutions will reduce QE. However, there seems to be a bigger issue at hand.
From forced retirement, to child-care issues and a desire for a better quality of life, COVID-19 has set in motion a new dynamic in the workforce.
In the U.S. alone, labor markets are missing around 4.3 million workers since the beginning of the pandemic. Unemployment rates in America are at their lowest rate since the pandemic began, and they are also falling across Europe.
Labor shortages are impacting businesses all over the word, from farms in the U.K. to factories in China. Not being able to find enough employees, owners are boosting wages, which is shifting the balance of power. But how long will this situation last?
Forced to do more with less, businesses are looking to innovate and increase automation. Servers have been replaced with digital tablets used to order food.
Automated warehouses can improve inventory management. And “human-in-the-loop” machine learning software solution automates the process of classifying, capturing, detecting, and analyzing financial documents.
Automation may end up replacing more than just hospitality and warehouse jobs. Other vulnerable sectors include administration and financial services.
