US is the only advanced economy in the world that does not have federally mandated paid vacation for its workers, per BI.

As a result, 1 in 4 private-sector workers in the U.S. do not receive any paid vacation or paid holidays.

“The United States is the only advanced economy in the world that does not guarantee its workers paid vacation days and paid holidays,” said John Schmitt, senior economist and co-author of the report. “Relying on businesses to voluntarily provide paid leave just hasn’t worked. It’s a national embarrassment that 28 million Americans don’t get any paid vacation or paid holidays.”

Meanwhile, persistent labor shortages in the United States have reportedly affected many companies that are trying to attract and retain workers. This was especially true for small businesses and service industry businesses.

This comes when the average hourly earnings per month rose by 0.3%. The Fed notes that due to this increase, Americans can still continue to spend despite the pressure felt on the prices of multiple products and services across different industries.

The report notes that there was a concentration of hiring demands in these specific sectors.

Leisure
Hospitality
Healthcare

It was noted that those specific sectors reportedly experienced acute labor shortages. It also highlighted that, on the other hand, employers in other industries, like retail trade and temporary help services, had to stop hiring due to weaker demands.

Read more: https://unusualwhales.com/news/labor-shortages-affect-us-companies-trying-to-attract-and-retain-workers