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Some businesses seem determined to wait for them. Wages have risen, but many employers seem reluctant to make other changes to attract workers, such as flexible schedules and better benefits. This is partly because many companies have discovered that they can get by with fewer workers, in some cases by asking customers to wait longer or accept less service.
“They make so much profit, in part because they save on labor costs, and the real question is how long that can take,” said Julia Pollak, chief economist at employment site ZipRecruiter. Eventually, he said, customers may grow tired of using their own desks or sitting in wait for hours, and employers may have to comply with workers’ demands.
Some businesses are already changing the way they work. When Karter Louis opened his latest restaurant this year, he abandoned the industry-standard approach to staffing, with kitchen workers underpaid and waiters reliant on tips. At soul-food pizzeria Soul Slice in Oakland, California, everyone works full-time, receives a salary instead of an hourly wage, and receives health insurance, retirement benefits, and paid vacations. He said it’s still not easy to recruit, but hasn’t had the staffing issues other restaurants have reported.
Restaurant owners wondering why they couldn’t find workers, Mr. Louis said, should look at how they treated workers prior to the pandemic and also as the industry was laying off millions.
“The restaurant industry didn’t really have their people’s backs,” he said.
However, better pay and benefits alone will not bring back everyone who leaves the job market. The largest decline in workforce participation has been among older workers who face the greatest risks from the virus. Some may return to work as their health improves, but others have retired.
And even near retirement, some people got together outside of a traditional job.
When 30-year-old Danielle Miess lost her job at a Philadelphia-area travel agency at the start of the pandemic, it was a blessing in a way. Taking a break for a while helped him realize how bad the job was for his mental health and finances—his bank balance was negative the day he was laid off. He said he has gained some financial stability, with federally sponsored unemployment benefits that provide more than he earns on the job.
Ms. Miess’ unemployment benefits ended in September, but she is not looking for another office job. Instead, he pools his livelihood from various gigs. While trying to start a business as an independent travel agent, she also does sit-in, dog-sitting and selling clothes online. He estimates he earned just over $36,000 a year before the pandemic, and enjoys flexibility despite working hours as usual.
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