I woke up this Labor Day thinking about the good fortune conferred on those of us living in the developed world. As an American, I am grateful for the good fortune to be born in New Jersey, to live in Pennsylvania, and have the opportunity to raise our children in a nice community and school district.
When did Labor Day start? USA Today had an interesting article on this topic. Read here.
I don’t know that there was a time in my life, more than the past few years, when disruptions in the labor markets (irrespective of collective bargaining) demonstrated such noticeable impact on our daily experiences: when before did I ever notice such disruptions to supply chains, health care, airlines, and hospitality? In March 2020, during the early days of COVID, I wrote a blogpost on this topic.
On this Labor Day, I think we should take some time to appreciate the incredibly dynamic nature of the American labor market. I ran through some data from the Bureau of Labor Statistics and summarized below.
Jens Thorsen’s analysis of August 2022 BLS employment and labor market data
Think about the implications of these numbers, which represent innumerable voluntary thoughts and actions of employers and workers. In the month of August, nearly 5mm people opted to re-enter the labor force, where, for many reasons, they were previously not participating (e.g. taking time off from a busy career). A similar number ceased working and left the labor force (e.g. retirement). While 1.3mm “discouraged workers” transitioned from unemployed to leaving the labor force, 1.6mm started looking for work again (unsuccessfully in the first month). And while 1.5mm lost jobs and remained unemployed, 1.8mm found jobs.
I hear people use words like “freedom” and “liberal” in ways that leave me wondering whether the words mean vastly different things to different people. Nonetheless, on this Labor Day, I can’t think of a better testament to American freedom and liberalized markets than American labor markets.
Have a wonderful Labor Day!