Politicians from both parties often say that the U.S. needs to bring back manufacturing jobs that have moved overseas. Both President Joe Biden and former President Donald Trump have praised infrastructure projects for creating jobs in construction and related fields. However, a major challenge is finding enough workers.
When Biden’s infrastructure law passed in November 2021, there were already about 500,000 vacant construction jobs. Since then, the shortage has grown by another 150,000 positions. The U.S. also has about 1.4 million fewer manufacturing jobs than two decades ago, and manufacturers currently have around 750,000 job openings.
A key issue is that more adults are not working, a trend that worsened during the COVID-19 lockdowns. The labor-force participation rate, which shows the percentage of adults working or looking for work, dropped from 67.3% in 2000 to 60.8% during the pandemic. Today, more than 100 million adults are not working or searching for work, up from about 95 million before the pandemic.
Government benefits are partly to blame for this decline. Programs like Social Security Disability Insurance and Supplemental Security Income support more Americans now than in the past. For example, the number of people receiving disability benefits has increased from 1.5 million in 1970 to 7.6 million today.
Extended unemployment benefits during the pandemic also discouraged some people from looking for work. A 2022 survey by the U.S. Chamber of Commerce found that nearly 25% of unemployed people said government aid made them less likely to seek a job.
The pandemic also intensified social problems that affect employment. Drug use increased, with workers testing positive for drugs at a 10-year high in 2021. Workers who tested positive for marijuana were involved in more accidents and had higher absenteeism. Rising addiction rates, particularly to opioids, have also pushed more people out of the workforce. Substance abuse could account for up to 26% of the increase in people leaving the job market during COVID.
Mental health issues have also played a role. In 2020, nearly 29% of federal disability beneficiaries had mental health problems that made them unable to work. Many young Americans have also opted out of the job market, with 14% of 25-year-olds not working or looking for a job—a rate much higher than that of previous generations.
To address these issues, several steps can be taken:
- Remove Disincentives to Work: Implement work requirements for government benefits to encourage people to re-enter the workforce.
- Early Intervention Programs: Help temporarily disabled individuals return to work before they become permanently unemployed. This could involve transitioning to less physically demanding jobs.
- Revive Career Preparation: Reinstate school programs that prepare students for trade and technical careers, which have been overshadowed by the push for college degrees.
- Reconsider Drug Policies: Review and possibly adjust marijuana legalization laws if they contribute to workplace problems.
- Support Ex-Convicts: Develop strategies to help integrate former prisoners into the workforce, such as offering “crime and safety insurance” to businesses hiring them.
Work is a fundamental part of human life, and neglecting it can have serious consequences. Addressing these issues is crucial for improving the job market and strengthening the economy.