Behind the May jobs report: Where are the workers?

Faced with a sudden explosion in demand as the economy reopens, employers are itching to hire. Companies are publicizing wage hikes, one-time bonuses, better benefits. Some are even trying to offer more humane working conditions!

So … where are the workers?

The U.S. economy added 559,000 jobs on net in May, an acceleration from the previous month (278,000), the Bureau of Labor Statistics reported Friday. More than half of the jobs added were in leisure and hospitality (restaurants, bars, hotels, gambling establishments, etc.), an industry hit especially hard by the pandemic and one that has been complaining loudly about its inability to attract talent.

But that industry and the economy overall remain deeply in the hole. Across the economy, there were about 5 percent fewer jobs in May than existed in February 2020, the last month before the pandemic began; in leisure and hospitality, the jobs deficit is 15 percent.