Why the labor shortage is likely to continue in 2023 and beyond

The Federal Reserve has been working to cool down the hiring market, but the latest data shows few substantial changes in the nation’s labor market dynamics — meaning employers in many industries are likely to continue facing significant challenges finding talent. The United States added about 263,000 jobs in November, far above expert estimates of around 200,000. The unemployment rate sits unchanged from at 3.7%. The Labor Force Participation Rate, which is the percentage of working-age Americans actively seeking work or employed, dropped slightly to 62.1% in November, down from 62.2% in October and down from 63.4% in the month before the pandemic.