Why the Retail Labor Shortage Could Cause Big Headaches for Holiday

The U.S. economy is rebounding at an unprecedented rate, but the ongoing labor shortage continues to give retailers headaches — and may remain an issue into the crucial holiday season. In a recent survey of retail executives conducted earlier this month, Korn Ferry found that 51% of participants are having moderate trouble hiring store employees, while 36% reported facing significant challenges. “The challenge is right now we have probably the worst labor shortage in my entire career,” said Craig Rowley, a senior client partner with Korn Ferry. “We have something like 9 million jobs open and 9 million unemployed people in this country, but of those unemployed, maybe 3 million of them are in transition and aren’t looking for work. And somewhere between 5 and 7 million people have dropped out of the workforce during the pandemic.” The Bureau of Labor Statistics reported that for the month of June, the U.S. unemployment rate remained unchanged at 5.9%, with roughly 9.5 million people out of work, despite the fact that most industries, including retail, have a dearth of unfilled positions. In recent months, industry leaders have credited the labor shortage to a number of factors, chief among them the government’s extra unemployment benefits and three

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