Why is every place hiring right now?

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The Covid-19 pandemic has changed the world in so many unthinkable ways, not only in public health issues, but also causing a labor shortage in our country. There are more jobs available than workers. 

 If you stop by a restaurant or store, chances are, they’re hiring. Some stores even display “We are extremely understaffed” signs on their doors. How did it get this way? 

In August, a reported 10.4 million jobs were available, the most since Dec. 2000. ING’s economists researched possibilities for why this could be.  

“We believe there is a more permanent loss of workers driven by a large number of older workers taking early retirement,” the ING said.  

 This could be a possible explanation for a labor shortage. In 2020, a lot of people had to work from home, why not just retire early if they’re already home all the time? A lot of people also haven’t returned to work yet, due to the pandemic not fully coming to an end.  

To overcome the demand for workers, some companies, such as Costco, Starbucks and Walmart are raising their pay.  

Costco has raised their minimum wage to $17 an hour, and in January, Starbucks will raise its starting pay to $15 an hour.  

Walmart employs over 1 million people across the U.S, and in September, they raised their hourly pay to $16.40. With these attempts, the companies hope to attract more employees to better their franchises.  

The labor shortage is impacting restaurants the most. The U.S Bureau of Labor Statistics says there will be a 6% increase in demand for chefs in the coming years.  

Some smaller businesses and locations have had to close early or for days at a time. They have stopped advertising locally to prevent and influx of business, due to not having enough employees.

Companies have even listed numerous reasons and perks to work at their locations on the door to try to get more workers.  

A few months ago, a reporter asked President Joe Biden about the labor shortage.  

John Lanni, an Ohio restaurant-group owner asked, “How do you and the Biden administration plan to incentivize those that haven’t returned to work yet?”  

“Restaurants and tourism businesses will be in a bind for a little while. Workers who had been working service jobs were now taking higher wage jobs as job openings surged,” Biden said.  

Biden also said that low wages could be why people aren’t returning to work, which is why businesses are trying to raise their pay to combat that issue.