The pandemic disrupted plans for nearly three years, with the U.S. economy experiencing a drastic downturn after a prolonged period of growth. The onset of COVID-19 in 2020 led to nationwide closures, resulting in a 3.5 percent contraction in the economy, widespread job losses, business closures, and disruptions to the supply chain.
Adjusting to a new social normal, the job market faced challenges, marked by “The Great Resignation” or “The Great Reshuffle” in 2021 and 2022. Staffing shortages persisted into 2023, particularly affecting industries such as education, childcare, healthcare, hospitality, manufacturing, and construction. Workers left their jobs, citing reasons like low pay and limited advancement opportunities. Approximately half of the 47 million people who quit their jobs in 2021 switched careers entirely.
In healthcare, burnout and overwork prompted many professionals to consider or switch careers, contributing to an anticipated shortage of over 300,000 healthcare professionals by 2030. Educational institutions struggled to attract and retain workers, exacerbating teacher shortages, and a declining number of individuals pursuing education degrees added to the challenge. The childcare industry experienced a significant workforce reduction, with a reported 100,000 fewer professionals compared to pre-pandemic levels, possibly influenced by low average annual incomes.
Certain jobs, such as cooks, dishwashers, hosts, hostesses, and fast-food workers, face challenges, particularly in the restaurant industry, where financial success is elusive, contributing to ongoing labor shortages in these sectors.