It's a Worker's Market: Jobs go begging in a wave of retirements and reassessments.

• Author: Hultin, Suzanne
• Position: EMPLOYMENT, LABOR AND RETIREMENT

Nearly two years after the start of the pandemic, American businesses find themselves in a predicament: There are more job openings than people looking for work--but filling the jobs remains a challenge.

This is a complete shift from the millions out of work in the spring and summer of 2020. And although there are multiple explanations, one thing is clear: It's a worker's market, and companies that can offer flexible schedules, career advancement, higher pay and benefits such as paid leave are winning over job seekers.

The Jobs Mismatch

The U.S. labor market faces a paradox, with both a record worker shortage and a high number of job seekers. Recent data from the U.S. Bureau of Labor Statistic shows that employers posted 10.4 million job openings in September, the most the bureau has ever reported. At the same time, 7.4 million Americans were unemployed, topping the 5.7 million who were unemployed in February 2020, right before the pandemic hit. In other words, there are 83 unemployed job seekers for every 100 job openings.

So why the disconnect? There are a few possible explanations out there, such as the increased unemployment benefits, which expired in September, or reduced child care options for parents. Research has shown, however, that ending the supplemental unemployment benefits restored only a small fraction of jobs, and that parents of young children are not impacting the employment deficit more than other workers.

A recent survey of job seekers by Indeed Hiring Lab found that continued concerns about the pandemic and new COVID-19 variants are muting the urgency to find work. For some, financial cushions, such as savings and spousal income, or schools being on summer break, have also played a role in reducing the desire to seek employment. That will change as kids return to school and savings start to dwindle, the survey said.

"What we're seeing in the labor market right now is an urgency mismatch," says Nick Bunker, head of research for Indeed Hiring Lab, which tracks labor trends. "Many employers desperately want to ramp up production and need to hire workers to do so. Workers, for a number of reasons, don't feel that same sense of urgency."

Child care, increased unemployment benefits and fears of COVID-19 variants may all be playing some role in the number of unfilled jobs, but they aren't the only drivers. In September, the Maine Department of Labor surveyed workers on state unemployment insurance, asking what was preventing...