The 2021 labor-market story should have been one of a strong—if incomplete—recovery. The unemployment rate fell to 4.2% in November after ending 2020 at 6.7%. The economy gained more than 555,000 jobs a month on average. Although still about four million shy of pre-pandemic levels, the pace of job growth was quick.
Instead, 2021 has been a head-scratcher. Since May, there have been more job openings than unemployed workers. Three million people still haven’t returned to the labor force. Quits reached a high in September, when 3% of all workers left their jobs. In September and October, hires were 4.4%—suggesting an incredible rate of job switching.
