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Common Factors for Retirement in US and UK Labor Shortages: IMF

Washington: In a report released Wednesday, the IMF concluded that the outflow of older workers is the “common thread” behind the mysterious labor shortages facing US and UK companies. According to a survey by the International Monetary Fund, job vacancies and workers’willingness to do these jobs, especially “mismatches” with low-wage positions, also have an impact, but payment of pandemic aid is not a major factor in keeping workers away. was.

However, according to the report, the problem of women on the sidelines due to difficulties in childcare and school education in the COVID-19 pandemic was unique to the United States.

“We have found that less participation of older workers who do not return to work is a common thread and is of paramount importance. Mismatches play a secondary role,” said author Carlo Pizzinelli. Ippei Shibata describes the findings in a blog post. “The reduction in female participation is unique to the United States, but quantitatively important,” they said, and as of October 2021, the absence of a mother for a child under the age of five was about the total employment gap in the United States. He said it accounts for 16%. Respect the pre-Covid level. In contrast to the stories often advertised in the United States, researchers have discovered a “modest and temporary effect” of expanding unemployment aid.

A more important issue in both countries was that “the proportion of older workers without a labor force has risen significantly.” In the United States, the departure and early retirement of workers over the age of 55, coupled with the “return” of female workers, could account for about 70% of the U.S. employment gap compared to pre-COVID levels. “The author said. .. In the UK, the absence of older workers accounts for 35 percent of the shortage.

The two countries have been hit by a surge in employees quitting jobs known as “mass layoffs,” but the report found that most of the unfilled openings were focused on low-paying jobs. “Workers may be more reluctant to find employment in low-skilled professions traditionally associated with low wages and poor working conditions,” the report said.

The authors said that in order to solve the labor shortage and prevent persistent scars in both countries, it is necessary to deal with a pandemic so that workers can return to work. We also recommend “a well-designed training program to reduce the risk of mismatches.” In the United States, they called for “expanding childcare and preschool opportunities.” This is a measure promoted by US President Joe Biden in a stalemate in Congress.

After Microsoft announced that it would spend tens of billions of dollars on the acquisition of a video game company, World Bank Governor David Malpass said Wednesday to support the deal and poor countries facing increased debt burdens. The comparison with the amount promised by the wealthy country was shown. “I was surprised by Microsoft’s investment this morning, with $ 75 billion in video game companies,” Malpas said in December, saying that aid to the poorest countries was only $ 24 billion in three years. Mentioned the donations allocated to 48 middle-aged and older people. Income government.

“You have to wonder, is this the best allocation of capital?” He talked about dealing with Microsoft in a discussion at the Peterson Institute for International Economics. “There must be more money and growth flowing into developing countries.” Microsoft said on Tuesday that US game giant Activision Blizzard, the company behind hits like “Call of Duty.” Announced acquisition.

Malpas called on the wealthiest of the 20 groups to provide more debt relief to the least developed countries of the world, which are eligible for interest-free lending. The G20 Debt Suspension Initiative expires at the end of 2021, and this year alone, these countries will have to pay $ 35 billion in debt repayment. “Debt repayment is astounding,” and it has become a “complex” issue, Malpas said. -AFP

https://www.kuwaittimes.com/retirements-common-factor-in-us-uk-labor-shortage-imf/ Common Factors for Retirement in US and UK Labor Shortages: IMF

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