Why are there so many jobs and so few workers in the US and UK? The most important “common denominator” is the exit of the elderly from the labor market, estimates the IMF in a report published this Wednesday (19).
“In both the United States and the United Kingdom, the percentage of older workers outside the workforce has increased significantly, although early retirement claims have only grown in the United States,” the report authors explain.
The decline in women’s participation in the labor market is specifically observed in the United States, the Fund notes in the document. This is explained by the prolonged closure of schools in a country that has little supply of childcare services and very expensive day care.
“We estimate that in October 2021, the excessive contraction of mothers of children under five employed compared to other women accounted for about 16% of the total gap in employment in the United States from pre-Covid levels”, highlights Carlo. Pizzinelli and Ippei Shibata, two IMF economists in a publication accompanying the report.
However, they found with surprise that – unlike the 2009 crisis – the imbalance between supply and demand played a secondary role in both countries.
The end of exceptional social assistance, such as those agreed by the US government, had only a “modest and temporary impact on people’s return to work”, they explain.
The IMF points to the phenomenon of the “big layoff”, in which millions of people leave their jobs to seek a more attractive offer.
“Workers have become more reluctant to accept jobs in low-skilled occupations, which are traditionally associated with lower wages and worse working conditions,” write Pizzinelli and Shibata.
To regain employment, the IMF highlights that fighting the pandemic remains essential.
The institution also highlights the need for training to enable reconversions.
In the United States, there is an urgent need to expand childcare services and school children before the age of five. Measures that the Joe Biden administration is trying to pass in Congress.
know more
+ SP: Man dies standing, leaning against car, and scene scares residents on the coast
+ One twin became vegan, the other ate meat. Check the result
+ Reincarnation in history: an age-old belief
+ Andressa Urach asks for money on the internet: ‘Help me pay my card bill’
+ Horoscope: check today’s forecast for your sign
+ CNH: see what you need to know for the application and renewal
+ See which were the most stolen cars in SP in 2021
+ Expedition identifies giant squid responsible for ship sinking in 2011
+ Everything you need to know before buying a crockpot
+ US Agency warns: never wash raw chicken meat
+ What is known about fluorone?
+ Trick to squeeze lemons becomes a craze on social media
+ IPVA 2022 SP: see how to consult and pay the tax
#IMF #Early #retirements #affect #employment