US faces labor crisis, amid increase in manufacturing activity as economy rebounds

The United States is emerging from a pandemic recession, manufacturing activity is increased in May as pent-up demand from a recovering economy boosted orders, but amid labor shortages, incomplete projects piled up.

Some company owners have been vocal about their dissatisfaction with the problems they are experiencing in finding labor.

As the economy rebounds from Covid-19, it's a job seeker's market from restaurant kitchens to software development enterprises. There is too fast job recovery in several metros and many people are out of the Labor pool owing to a mix of variables from increased unemployment benefits, quality of employment, and lack of childcare facilities. Some locations are far worse than others.

The increased unemployment benefits, which include a $300 weekly government-funded supplement, pay more than most minimum-wage employment. As part of a $1.9 trillion COVID-19 pandemic relief package adopted in March, the benefits were extended until early September.

Republican governors in at least 23 states declared that they would withdraw unemployment services plans that are federally sponsored, next month as employers claim encourages the unemployed to sit at home rather than pursue jobs.

Economists believe that even if all adult Americans are now eligible for Covid-19 vaccines, some employees may still be scared of returning to work. Others mentioned child care issues, as in-person lessons remain scarce in many school systems. Surveys of businesses have revealed significant labor and input shortages.

The US Chamber of Commerce unveiled a countrywide drive to solve the labor shortage in the United States on Monday, describing the situation as the most urgent and broad concern confronting companies.

The "America Works" project intends to unite industry and government to "swiftly resolve America's rising worker shortage challenge."

The Chamber of Commerce emphasizes that a dearth of people to fill unfilled positions is not a new issue, but "keeping our economy functioning requires that we fill these jobs."

According to the organization, there were 8.1 million job opportunities in the United States in March 2021, with almost half as many eligible employees for every vacant position throughout the country as there have been in the previous 20 years.

With inputs from CNN