“Before the pandemic, the flu alone could sometimes push hospital systems into crisis mode, where they cancel elective procedures and limit other kinds of care. Now there’s Covid-19, which has done the same thing on its own.
Suddenly conjuring more hospital capacity every winter to handle the expected surges of flu and Covid-19 is not going to happen. Thousands of additional hospital beds are not coming in the next few years, and the US would not have the doctors and nurses to staff them anyway. It will take much longer — years or maybe decades — to improve the gaps in America’s health care infrastructure and workforce that have been exposed during Covid-19.
This means the imperative to “flatten the curve,” to limit the spread of these viruses to stop hospitals from being overwhelmed, will be with us for a long time. But the makeup of the curve will change, measuring multiple diseases instead of one.”
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“Vaccination is the best way to stop a bad Covid-and-flu season before it starts.”
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“Surveillance is critical, starting with early-warning systems. Public health institutions have long monitored the flu and they are already tracking Covid-19 in a similar manner. Monitoring the amount of virus detected in local wastewater has proven to be a reliable leading indicator of new Covid-19 waves during the pandemic. And widespread, reliable testing will be essential — including at-home tests for both Covid-19 and the flu.”
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“Frequent testing lets people know that they should isolate. If they are at higher risk of severe illness, they can get on antivirals quickly. The current therapies are most effective at stopping serious symptoms that could require hospitalization if they are taken within the first few days of an illness. Research in the last decade has found that flu antivirals are too often underprescribed for patients who would benefit most; improving prescription rates is only more critical now that the health system will be contending with both the flu and Covid-19 going forward.”
“I spoke with current and former H-1B holders, U.S. workers, union reps, academics, lobbyists, recruiters and immigration lawyers on both sides of the political spectrum. While they differed on the specifics, many said that the program is used not to fill labor shortages, as corporations insist, but to cut costs. Critics say that businesses regularly game the system to pay H-1B visa holders below market wages, both exploiting foreign workers and stacking the deck against American job seekers.
As a candidate, President Joe Biden promised reform, saying “high skilled temporary visas should not be used to disincentivize recruiting workers already in the U.S. for in-demand occupations.” Now in office, his administration is considering increasing the wages companies have to pay H-1B workers, which would reduce the incentive for companies to hire foreign workers. This summer, it quietly — and unsuccessfully — defended in court a Trump-era rule that would have replaced the lottery system currently used to allocate visas with one that prioritizes the highest-paying jobs. Both Democratic senator Dick Durbin of Illinois and Republican senator Chuck Grassley of Iowa had long been calling for the change, saying in a joint letter that the “H-1B visa program is greatly in need of reform.”
But full scale reform is going to prove tricky for a president who campaigned as a champion for both workers and immigrants. Because while many pro-labor groups say the program lines the pockets of the likes of Google and Facebook at the expense of American workers, immigration advocates, along with business interests, oppose measures to rein it in, saying that doing so will hurt American competitiveness by narrowing access to a badly needed pipeline of high-skilled talent. Politically, H-1B reform is pegging two powerful Democratic constituencies against each other. Meanwhile, getting anything through a sharply divided Congress won’t be easy.”
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“H-1B reform could drastically change the landscape of business and immigration in the U.S. There are roughly 600,000 H-1B visa holders in the country, the vast majority from China and India. Most of these jobs are in tech, but companies can also use the program to hire, say, Spanish-language teachers or doctors with special skills.”
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“Proponents of the H1-B program say that U.S. firms need access to foreign STEM talent in order to remain competitive, an argument that hinges on the existence of a domestic labor shortage in the tech world. Unemployment in the tech sector is significantly lower than it is for the economy overall, which business groups say is evidence that domestic tech workers are doing pretty well and foreign workers are mostly filling demand above and beyond what the domestic workforce can supply.
The problem is, historically it’s not clear that there has been a labor shortage in tech. Skeptics point to the fact that median wages in the sector haven’t increased everywhere in the country, or all that dramatically. “What happens when there’s something in short supply?” said Ron Hira, an associate professor of political science at Howard University and research associate with the pro-labor Economic Policy Institute (EPI). “You have a price mechanism. In this case, it would be wages. So, anything in shortage you’d see wages going through the roof.” The fact that there haven’t been dramatic wage spikes, he says, suggests that claims of labor shortages in the U.S. are overblown.
Instead, Hira and others believe that corporations have become accustomed to paying below market wages through use of the H1-B program. Employers are required to pay H-1B workers the higher of either the actual wage paid to a worker in a comparable role at their company, or the average wage for similar workers based on occupation, geography and experience. Employers select this “prevailing wage” from four levels set by the Department of Labor.
But an analysis by EPI found that, in 2019, employers certified 60 percent of all H-1B jobs at the two lowest levels — leading to questions about whether corporations were classifying these jobs at artificially low levels to avoid paying higher wages.”
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“Wages can be pushed down by other factors, too. H-1B visas are held by employers, which means there are restrictions on the free movement of labor. Foreign workers can’t simply leave the company if their wages aren’t competitive. “I felt like I had no option to negotiate whatsoever,” said a Pleasanton, Calif.-based former H-1B worker and now-green card holder who didn’t want to be identified for fear of professional repercussions. He guesses he was paid 25 to 35 percent less than his domestic counterparts as an H-1B worker.
“People who have been here for 10 years, or even some people who were born and brought up here who’ve been in good jobs making six figures, suddenly they’re losing their jobs just because [their employers] found somebody from India who would do it for $50,000,” said Choudhary.”
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“Some argue that the H1-B visa program lifts all boats: There is research showing that an increase in foreign STEM workers as a share of a city’s total employment increases wages for domestic workers more broadly. But for many workers, any aggregate benefits of the program are far outweighed by the costs. In 2015, Disney famously fired over 200 U.S. workers, some of whom said they were made to train their H1-B-holder replacements.”
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“One of the biggest arguments made by tech and other companies against making it harder for foreigners to come in on an H-1B visa is that it would dissuade the “best and brightest” from coming to the U.S. But several of the people I spoke with said that’s not always the case. “It’s a mixed bag,” said the Pleasanton, Calif.-based former H-1B worker about the caliber of the H-1B visa holders he worked with.
In recent years, H-1Bs have been awarded by lottery because the number of visa applicants has far exceeded the annual cap. Immigration advocates say that this shows the scope of the need for high-skilled foreign workers. But critics say that has led to a proliferation of mediocre workers.
There’s also the problem of players who want to cheat the system.”
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“H-1B visas are good for three years, after which workers may apply for an additional three year extension. After his six years were up, Vikram’s employer initiated the process of applying for a green card for him, but, because of an enormous backlog for people coming from India, the processing time was expected to last at least nine years.
Vikram decided it wasn’t worth it. He still works with his former employers — but now as part of his own business, which he runs from India, charging his American clients half the cost of a U.S. salary.”
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““The focus on H-1B, as if it were the way that we get skilled workers into our economy — that’s an artifact of the misuse of the H-1B visa,” said Bruce Morrison, a former Democratic congressman who wrote the legislation that created the H1-B program. “The H-1B program is a non immigrant program. And non immigrant by definition is supposed to be temporary.”
His solution is to expand the current limit of 140,000 employment-based green cards per year. “We still have the same numerical limitations that we had in 1990,” said Morrison. Biden’s immigration bill includes a provision that would increase the number of employment-based green cards to 170,000.
“People who have green cards have a right to become citizens,” says Morrison. “They get to vote, they have the same rights as citizens, they can’t be exploited in a legal sense. These are real values.””
“Many had expected people to return to the workforce en masse after federal unemployment benefits expired in September. While that’s happened to some degree — the economy added more than half a million jobs last month — there are still many more Americans holding out, thanks to a variety of reasons, from savings to lack of child care to the ongoing risks of the pandemic.
Importantly, the pandemic — as well as government social safety nets like extended unemployment benefits — gave people the time, distance, and perspective to reevaluate the place of work in their lives.”
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“There are still more than 4 million fewer people in the workforce than there would be if labor force participation were at pre-pandemic levels. There are 10.4 million open jobs and just 7.4 million unemployed, according to the latest data. Of course, many of these open jobs are bad: They have bad pay, dangerous working conditions, or just aren’t remote (remote positions on LinkedIn get 2.5 times more applications than non-remote, according to the company).
The result is a situation where many employers — especially those in industries with notoriously bad pay and conditions — are having difficulty finding and retaining workers. To counter it, they’re raising wages, offering better benefits, and even altering the nature of their work. Depending on their strength and duration, these various actions could have long-lasting impacts on the future of work for all Americans.”
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“In September, a high of 4.4 million people quit their jobs, according to the latest data from the Bureau of Labor Statistics, which has been tracking this data since 2000. That’s 3 percent of all employment and follows a summer of record quit numbers. Quitting has been especially prevalent in lower-paying, lower-status jobs like those in leisure, hospitality, and retail.”
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“In 2021, approval of labor unions grew to 68 percent of Americans, its highest rate in more than 50 years. This is happening as many American workers are attempting to unionize their workplaces. Recent unionization efforts include Starbucks, Amazon, and meal-kit delivery service HelloFresh. Last month was dubbed “Striketober,” as more than 100,000 workers across industries, including workers at John Deere and in film and TV crews, participated in various labor actions. This is one of the many worker trends bulwarked by social media, which is rampant with support for unions.”
“Companies across the United States can’t find enough employees. One immediate solution is simple: Bring in more foreign workers.
The US needs roughly 10 million people, including low-wage and high-skilled workers, to fill job openings nationwide — and only 8.4 million Americans are actively seeking work.
And despite job openings hitting historic highs in July and extended unemployment benefits ending in September, Americans aren’t returning to work, especially in low-wage industries. At the same time, workers are resigning in record numbers. And though consumer spending has surged this year, businesses don’t have the people to meet demand — to cope, some companies are raising their prices. Supply chain bottlenecks are even threatening to ruin Christmas.
When the economy is fragile, there’s an instinct to shut borders to protect American workers. And indeed, that’s what the US has done during the pandemic, practically bringing legal immigration to a halt and closing the southern border to migrants and asylum seekers. In a normal year, the US welcomes roughly 1 million immigrants, and roughly three-quarters of them end up participating in the labor force. In 2020, that number dropped to about 263,000.
Generally, economic research has shown that the arrival of low-wage foreign workers has little to no negative impact on native-born workers’ wages or employment. And under the current circumstances, welcoming more low-wage foreign workers could address acute labor shortages in certain industries, helping hard-hit areas of the country recover while staving off higher inflation.
The industries currently facing the worst labor shortages include construction; transportation and warehousing; accommodation and hospitality; and personal services businesses like salons, dry cleaners, repair services, and undertakers. All four industries had increases in job postings of more than 65 percent when comparing the months of May to July 2019 to the same time period in 2021, according to an analysis conducted for Vox by the pro-immigration New American Economy think tank. Immigrants make up at least 20 percent of the workforce in those industries.”
“Employers in almost every industry say they’re struggling to find workers, but the situation is especially severe in the leisure and hospitality sector. While workers in these industries are getting paid more than ever, it still doesn’t seem like enough. Bars, restaurants, and hotels across the country are posting signs advertising open jobs — or asking customers to be patient since they don’t have enough staff. In August, the latest available month for openings and turnover data from the Bureau of Labor Statistics (BLS), there were a near-record 1.7 million open jobs in leisure and hospitality — 10 percent of all jobs in the sector — and a record of nearly a million people quitting.”
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“when individual states rescinded their unemployment benefits this summer, it didn’t have a meaningful impact on the worker shortage in many industries, including leisure and hospitality. Data from September, when the benefits were cut on a federal level, show a similar story, suggesting there are reasons beyond financial keeping people from taking these jobs.”
“A combination of factors are driving (heh) the United Kingdom’s fuel — or petrol, as it’s called — shortage.
There were disruptions in fuel delivery, but Brits’ desperation to get gas appears to be causing the current crisis. People are rushing to fill up their tanks because they are worried there will be a big shortage, and that is straining the available supply. Florian Lücker, a senior lecturer in supply chain management at the Bayes Business School at City, University of London, compared it to the US’s great toilet paper stockpiling at the outset of the Covid-19 pandemic.
“We have potential delays in supplies of fuel, among other things,” said Joanna Clifton-Sprigg, an assistant professor in economics at the University of Bath. “But it wouldn’t have been so bad if we all didn’t suddenly decide to go to a petrol station and fill the tanks to the full in every car we own.”
Why people were panic-buying gas in the first place is a bit more complicated. It’s not because of a national lack of fuel or gas. The UK has enough supply. It’s because there is a shortage of truck drivers able to deliver it.
This dearth of drivers isn’t exclusively a UK problem, it’s a global one, as the commercial trucking industry is struggling to recruit new workers for what is an extremely grueling job — long hours on the road, poor infrastructure to sleep or go to the bathroom.
“Being a truck driver is a really hard job,” said Dmitry Grozoubinski, director of the consultancy ExplainTrade. “It’s not hugely social. It’s not particularly high status. And in a lot of cases, it wasn’t supremely well paid.” The industry skews old, and many drivers are retiring, and though the UK is urging drivers with experience to come back, the often poor conditions and benefits are keeping people away. Add to that Covid-19 pandemic disruptions, which in the UK were particularly acute because the country suspended the testing process for truck drivers during lockdown.
The UK trucking industry is also dealing with something that exists nowhere else: Brexit. The United Kingdom’s exit from the European Union has exacerbated the crisis. Or more specifically, the version of Brexit pursued by Prime Minister Boris Johnson’s government has.
There are some signs that the immediate fuel crisis may be waning soon, and the UK government has put soldiers on standby to haul fuel, as needed. Johnson’s government has proposed a plan to bring in 5,000 foreign truck drivers through short-term temporary visas in an attempt to make up the shortfall. But that might not be enough to fill labor gaps the UK is experiencing, and Brexit — and the ideas behind Brexit — may make it harder to find long-term fixes.”
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“Pay for truck drivers isn’t always commensurate with the demanding nature of the work. The job became less appealing to Brits, and so like a lot of industries, companies sought to fill their ranks with workers from elsewhere. Wealthier countries in the EU have often relied on workers from poorer EU member states, and those workers could drive a truck in the UK or Germany and take home way more money than they’d be able to earn in, say, Poland.”
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“the Brexit deal negotiated with the EU created more friction between the two partners. That, too, was a deliberate choice, and has added a layer of red tape to the trading relationship. It may make it less attractive to be a trucker in the UK than in the EU and more difficult for EU truckers to make up some of the shortfall the UK is experiencing. “What Brexit has meant is that the UK no longer enjoys the way that the EU pooled resources and moved stuff around in order to take the edge off those problems,” Grozoubinski said.”
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“It has also been difficult to untangle the current rules from the anti-immigration sentiment that accompanied Brexit. People may not want to come to work in the UK where there is a sense they aren’t as welcome or won’t be able to settle in the UK. That unease may have prompted some truck drivers to leave.
But, according to Elizabeth de Jong, the policy director at Logistics UK, the pandemic just made everything worse, as people may have just gone back to their home countries during the lockdowns. “The thing that has changed because of the EU exit is that we would normally be able to just bring them back, and you can’t just bring them back or recruit more from the EU,” de Jong said. “We haven’t got that option anymore.””
“Right now, distribution networks across the world are massively congested.
“Los Angeles — which is a major port of entry for the United States — New York, and New Jersey are all pretty full up,” says O’Leary. “We’re hearing reports of delays of weeks for getting things cleared.”
“Containers are not moving out of ports and onto trains quickly enough,” explains Chris Tang, a UCLA business professor specializing in global supply chain management. “And on top of that, all of the warehouses in the Midwest are full. So everything is stuck.”
An increase in online shipping in part of what’s driving the congestion. Meanwhile, the complications of Brexit and the internet’s beloved container ship Ever Given — both of which dramatically disrupted global supply chains — certainly aren’t helping ports empty themselves out faster.
Even more pressing, however, is a shortage of truck drivers. There just aren’t enough trucks on the road to pick up as much stuff as we’re currently shipping around the world. “We’re talking tens of thousands fewer truck drivers than we need,” says O’Leary.
And as stuff sits in warehouses, waiting to be picked up by increasingly scarce truck drivers, the price of storage goes up, adding to overall shipping costs. “It used to be around $3,000 per container,” Tang says. “Now the price is closer to $20,000.” The skyrocketing costs mean that companies selling luxury goods will take more warehouse slots, since they can afford them, while lower-priced goods, like books, compete for what’s left.
Barnes & Noble CEO Daunt notes that books do have one big advantage over other goods when it comes to shipping: They’re durable. “The reality is that books are fantastic because they don’t really perish, so you’re able to print lots of them in advance,” he says. “They’re incredibly robust, so you can send them through the most basic of supply chain routes. They’re not strawberries or peaches or delicate things.”
But right now, even the most basic of supply chain routes are finding themselves overwhelmed.”
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“One of the big underlying problems when it comes to printing and shipping books is the same labor shortage that’s currently roiling the rest of the country. There aren’t enough press operators to get books printed, and then there aren’t enough truck drivers to get them to bookstores. Wages have gone up, but there still aren’t enough people working.
“In the whole national workforce, you’ve got 8.4 million unemployed but 10.9 million open jobs,” says Baehr. “That’s a two and a half million-person shortage, period, and that’s across all buckets. The book industry is getting hit with that just as much as the paper industry is getting hit with that just as much as the transportation industry is getting hit with that. It all just compounds on itself. It’s just a rough spot right now for the book business.”
“Simply put, the working-age population in the US has stopped growing,” says Gad Levanon, founder of the Labor Market Institute. “And the working-age population without a BA is shrinking quite rapidly.” That’s a major issue for the industries we’re discussing here because in general, people with college degrees prefer not to work in warehouses, as truck drivers, or in printing presses.”
“Essentially anywhere you go in the United States right now, you’re going to encounter “help wanted” signs. But just because a bar or restaurant or gas station wants a worker doesn’t mean a worker wants to work for them. The millions of jobs available aren’t necessarily millions of jobs people want.
“A lot of what people are seeing are low-paying jobs with unpredictable or not-worker-friendly scheduling practices, that don’t come with benefits, don’t come with long-term stability,” Shelly Steward, director of the Future of Work Initiative at the Aspen Institute, told Recode. “And those are not the types of jobs that any worker is eager to take on.””
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“Tim Brackney, president and COO of management consulting firm RGP, refers to the current situation as the “great mismatch.” That mismatch refers to a number of things, including desires, experience, and skills. And part of the reason is that the skills necessary for a given job are changing faster than ever, as companies more frequently adopt new software.”