Many Americans hoped this would be the first normal summer after two years of COVID-19 disruptions. A chronic labor shortage means it probably won’t be, according to Wall Street Journal reported. In Phoenix, less than half of the public pools are opening because the city can’t hire enough lifeguards, despite offering a $2,500 incentive payment. Trolley lines in coastal Maine that service beaches are shutting down for the summer due to a dearth of drivers. Across the country, restaurants in tourist destinations are operating on limited hours because they don’t have enough staff to stay open longer. The shortages push up labor costs, adding to inflationary pressure on items including airfares and beach menus. That could hold back consumer spending, the engine of the U.S. economy. The scarcity of available workers first emerged a year ago as COVID-19 vaccinations became available, businesses reopened and the economy rebounded. Many economists said more workers would join the labor force and fill open roles as COVID-19 fears eased and pandemic-related government stimulus faded. Now, shortages are not only persisting, in some cases they are deepening, at a crucial time for many businesses that depend on a summer boom. Two key factors are at play. First, employer demand for workers remains red-hot, with job openings double the number of unemployed individuals looking for work. Second, workers continue to switch jobs and quit lower-wage industries including restaurants at high rates, leaving businesses scrambling to fill vacant positions, economists say.
