{"id":11894,"date":"2022-08-24T22:51:31","date_gmt":"2022-08-24T22:51:31","guid":{"rendered":"https:\/\/zacksim.com\/blog\/?p=11894"},"modified":"2022-08-24T22:51:32","modified_gmt":"2022-08-24T22:51:32","slug":"labor-shortages-and-inflation","status":"publish","type":"post","link":"https:\/\/zacksim.com\/blog\/labor-shortages-and-inflation\/","title":{"rendered":"Labor Shortages and Inflation"},"content":{"rendered":"\n

Laurie and Simon B. from Las Cruces, NM ask: <\/em>Hi Mitch, we have been hearing and reading that the U.S. economy may not be in recession because the jobs market is so strong. But what we are seeing locally are many businesses struggling with worker shortages, and our friends in other cities say the same. Do you see a problem here?<\/p>\n\n\n\n

Mitch\u2019s Response:<\/strong><\/p>\n\n\n\n

Thanks for writing. The U.S. labor market has been one of the most perplexing aspects of the U.S. economy in the last couple of years, and your question cuts into an ongoing debate about economic output in the face of plentiful jobs, but also an abundance of worker shortages (particularly in the services sector). Anyone who has gone out to a restaurant or taken a flight in the past few weeks has probably experienced this shortage first-hand.1<\/sup><\/p>\n\n\n\n

We can use labor market data to analyze and shine light on this issue. First, we know that the overall labor force in the U.S. is smaller than it was before the pandemic. According to Labor Department data, there are about 600,000 fewer workers than in early 2020, and if you adjust these figures for population growth, it is a million-plus fewer workers. These numbers have been in recovery over the past year or so, but in March they started falling again.<\/p>\n\n\n\n

Are Your Investments Protected from Inflation?<\/a><\/strong><\/p>\n\n\n\n

While some investors are staying optimistic in regards to inflation, others, especially those investing in their retirement, may feel worried about what\u2019s next for the market and how it will affect their investments.\u00a0<\/p>\n\n\n\n

The turbulence of inflation can be very costly for the economy, but what can investors, especially those nearing retirement, do to keep their investments afloat?<\/p>\n\n\n\n

Instead of panicking, I recommend that you take a look at steps that could help reduce the sting of inflation. To help, we\u2019re offering our exclusive guide, 4 Ways to Protect Your Retirement from Rising Inflation<\/a>2<\/sup><\/em><\/strong>. <\/em>You will get insight on:<\/p>\n\n\n\n