Stephanie Ferguson
Director, Global Employment Policy & Special Initiatives, U.S. Chamber of Commerce
Isabella Lucy
Graphic Designer, U.S. Chamber of Commerce

Published

February 03, 2023

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A national crisis by the numbers

Right now, there are too many jobs without people to fill them. As a result, businesses can’t grow, compete, and thrive. The U.S. Chamber and Chamber Foundation's America Works initiative is mobilizing business and government to swiftly address the crisis.

This page captures the trends on job openings, labor force participation, quit rates, and more, for a quick understanding of the state of the workforce. Take a look behind the numbers at what is causing the worker shortage and learn which states and industries have been impacted the most.

The U.S. has lost millions of workers.

Data from January 2023 BLS Employment Situation report.
Data from January 2023 BLS Employment Situation report.
  • 62.4%
    labor force participation rate
  • 2.8M
    workers are missing from the labor force compared to Feb. 2020

The latest jobs report from the Bureau of Labor Statistics showed that thousands of people are entering the workforce. This is good. However, labor force participation does not match what it was before the pandemic.

If the percentage of people participating in the labor force was the same as in February 2020, we would have 2.8 million more people in the workforce today—and this shortage is impacting all industries in every state. If every unemployed worker took an open job in their industry, there would still be millions of open jobs.

Where did the workers go? Boosted unemployment benefits, stimulus payments, and child tax credits have padded the finances of some previously employed workers, and they no longer need to work. Plus, early retirements and less immigration has left the nation in a worker deficit.

We have a lot of jobs, but not enough workers.

  • 11M
    open jobs in the U.S.
  • 5.7M
    unemployed workers in the U.S.

If every unemployed person in the country found a job, we would still have over 5 million open jobs.

How did this happen? At the height of the pandemic, more than 120,000 businesses temporarily closed, and more than 30 million U.S. workers were unemployed. Since then, job openings have continued to climb, while unemployment has slowly declined.

Every state is feeling the impact of the worker shortage.

  • 67
    workers for every 100 open jobs in the U.S.
  • 43
    workers for every 100 open jobs in Minnesota

The Chamber’s Worker Shortage Index number indicates the number of available workers for every job opening. The Chamber calculates the Worker Shortage Index using the number of unemployed workers and the number of people who are marginally attached to the labor force. The Bureau of Labor Statistics (BLS) defines marginally attached individuals are those who are not considered to be part of the labor force, but want to, and are available, to work.

Minnesota with the lowest ratio of 0.43, is suffering the most. Only Connecticut and Illinois have a Worker Shortage Index above 1, meaning the state has an equal or higher number of available workers to job openings.

The Great Resignation is more like ‘The Great Reshuffle’

  • 2.7%
    national quit rate
  • 4.0%
    national hiring rate

The Great Resignation has pulsed through media headlines. However, ‘The Great Reshuffle’ is a more accurate explanation of the changes taking place in the workforce. The rate at which employees have quit their jobs has grown over the past year. But at the same time hiring continues to outpace quits.

Job openings have increased in most states since February 2020.

  • Georgia
    highest percent increase in job openings
  • Maryland
    lowest percent increase in job openings

Every state has more job openings today than it had before the pandemic. Job openings are slowing down in some states, but Colorado, Georgia, Minnesota, Nevada, and New Mexico have  a job opening increase of 70% or more between February 2020 and November 2022. States on average have had a 46% job opening increase from February 2020 to November 2022 – a sign that businesses are still creating jobs across the nation.  

Prior to the pandemic, 11 states had more than 200,000 job openings. That number has grown to 20 states as of November 2022. Sixteen states had fewer than 50,000 vacant jobs just prior to the pandemic. Now, that number has shrunk to 11. 

The Great Reshuffle has affected some industries more than others

  • 5.4%
    quit rate for leisure and hospitality industry
  • 1.6%
    quit rate for the financial activities industry

The Great Reshuffle has affected some industries more than others. Workers in traditionally lower paying industries, including leisure and hospitality and retail, have been most likely to quit their jobs. Meanwhile, in more stable, higher paying industries, the number of employees quitting has been lower.

Employers are responding quickly to the worker shortage, deploying new strategies to attract and retain a talented workforce. As the labor market continues to shift, and workers obtain new skills to gain employment in different industries, our labor pools take different shapes.

Workers in industries that require specialized skills or training, like financial activities and durable goods manufacturing, are experiencing relatively low unemployment rates. Conversely, workers in industries that offer a large number of entry level jobs—leisure & hospitality and wholesale & retail trade—have unemployment rates greater than the national average.

Hourly pay has leveled out through 2022.

Worker shortages, unfilled jobs, and inflation are impacting not just employers, but employees, too. As labor market demand shifts, so does pay. Hourly pay increased across the board in the summer of 2021 and spring of 2022 but has since leveled out over the course of summer 2022. 

The Instawork Pay Signal Index shows the change in business’s hourly pay. Readings below 50 indicate more businesses lowering wages than raising them, and the opposite for readings above 50.  

Through the America Works Initiative, we’re helping employers across the country develop and discover talent to fill open jobs and grow our economy. For more information on the America Works Initiative contact Jenna Shrove at jshrove@uschamber.com.

About the authors

Stephanie Ferguson

Director, Global Employment Policy & Special Initiatives, U.S. Chamber of Commerce

Isabella Lucy

Graphic Designer, U.S. Chamber of Commerce

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