Odd Lots
It Looks Like ‘Labor Hoarding’ Is Happening at US Factories
A potentially ominous sign.
An American flag at a factory in South Pittsburg, Tennessee.
Photographer: Luke Sharrett/BloombergThis article is for subscribers only.
During the most acute phase of the Covid-19 pandemic and the subsequent recovery, US companies found themselves in an unusual situation: extremely short on workers.
Having been burned by this shortage, there’s been a popular theory that firms have been engaged in “labor hoarding” or basically holding onto workers, who they might not necessarily need immediately, lest they be caught short again.