Labor shortages
Along with
supply chain issues making parts harder to find, labor shortages have made
skilled workers harder to find as well. The Bureau of Labor Statistics reports
that unemployment is at 3.6% as of April 2022 — nearly back to the pre-pandemic
level of 3.5%. However, many companies are still struggling to find workers.
The “Great Resignation” has pushed workers to reconsider their career paths,
with many labor shortages caused not by unemployment but by workers switching
jobs.
Fewer workers can contribute to rising insurance
costs. When fewer people do any given job, including vehicle repair and
healthcare jobs, pay rates often increase as an incentive. For example, perhaps
a mechanic used to repair bumpers for $100. Now, that same mechanic is working
longer days and taking less time off to make up for a reduced workforce. To
compensate, the mechanic now charges $300 to cover the same repair. Because the
repair costs more, insurance companies may increase rates to prepare for higher
claims expenses View Full Article in sinhala pdf
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