“Signs, signs, everywhere a sign” sang the 70’s Canadian rock group Five Man Electrical Band. The sign that is everywhere now is “Help Wanted”! The latest data from the Bureau of Labor Statistics shows there are over 100 million Americans who are currently out of the labor force. But of that group, just 6.85 million people are currently looking for a job. Why are less than 7% of available workers looking for a job? Interviews reveal the prevailing attitude: it pays darn well to not work! The trillions of dollars in government stimulus are now incentivizing potential workers not to seek gainful employment, but to sit back and collect the next “stimmy check” for not working. The chart below, from Bank of America’s Global Research department, plots the National Federation of Independent Business (NFIB) “Hard to Fill” job openings category. As can be seen, the current level of 40 is the highest in the history of the index.
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Jeffrey Cerny