First Things First

Our Economy Has a “People Gap” Challenge

Labor market data released this month shows our economy continues to have a “people gap” challenge.

The Workforce Availability Ratio, a metric developed by the U.S. Chamber, measures the number of available workers for every job opening.

The trend has been fewer workers available to work while the number of job openings have increased.

The latest WAR based on August Bureau of Labor Statistics data finds there are 1.1 workers for every job opening.

In other words, there’s almost one job for every person who’s looking for one – 7.77 million available workers versus 7.03 million job openings.

This is the tightest labor market in years, as U.S. Chamber economist Ronald Bird explains: “Employers looking to fill open positions are experiencing a labor market that’s nearly three times tighter than it has been on average over the last two decades and eight times tighter than it was 10 years ago.”

Small businesses, middle market companies, and construction firms have all said finding workers is one of their biggest challenges.

The gap between job openings and available workers is more pronounced when individual sectors of the economy are examined.

• Leisure and Hospitality: 176,000 more job openings than workers.
• Trade, Transportation and Utilities: 200,000 more openings than workers.
• Education and Health Services: 532,000 more openings than workers.
• Professional and Business Services: 618,000 more openings than workers.

Imagine how much more productive our economy could be if we had more workers?

That’s why the shrinking the people gap is a priority for the U.S. Chamber.

It’s working to bring more people into the workforce – like helping those affected by the opioid crisis, helping those getting out of prison find meaningful work, and helping veterans and their spouses find job opportunities.

The U.S. Chamber is also working on immigration reform. For instance, we’re fighting to help Dreamers, undocumented people who have lived in the U.S. almost their entire lives, earn legal status.

Tapping into these hidden pools of talent will help employers have the workers they need. It also helps people gain meaningful, productive work.

Diving In

Charles Schwab is a pioneer in democratizing investing. Fortune magazine chatted with the 82-year-old to glean lessons he learned building his business:

Patience is no virtue; when opportunities arise, take them. In 1975, when Schwab was looking to open the company’s first branch office, he had a funding offer in hand from his uncle. The only catch? The site had to be in Sacramento, near his uncle’s home. “I could think of a hundred cities I’d sooner start with than Sacramento,” Schwab says.

But why overthink it? Schwab made the deal—and the success of that testing ground persuaded him to open more offices. Branches became major growth engines for the business and a moat that enabled the company to stay ahead of Internet-only rivals many years later. “Sometimes the trick lies in making the most of necessity and not missing opportunities when they slap you in the face,” Schwab exhorts.

Have a business-related long read you want to share? Please email me.

Caught My Eye

Smaller metro areas are attracting immigrants, finds New American Economy.

The Big Picture

Christmas is coming. The CWH Santa School in Midland, MI, held three days of Santa training earlier this month.

Found a chart you want to share? Please email me.

Looking Ahead

October 16-17, 2019: The CO— Summit, hosted by the U.S. Chamber of Commerce in collaboration with MetLife, welcomes growth-focused business owners from across the country to Washington, D.C. Featured speakers include Daymond John of ABC's Shark Tank, Katherine Berman and Sophie LaMontagne of Georgetown Cupcake, Nick Friedman and Omar Soliman of College Hunks Hauling Junk, and Morgan DeBaun of Blavity, Inc.

October 24, 2019: The U.S. Chamber of Commerce Foundation's national workforce conference, Talent Forward 2019, will convene education and workforce experts to discuss the future of talent and the future of work.

To Play Us Out

I want to thank Bank of America for using The Spinners’ “Rubberband Man” in their commercials. I’m enjoying this earworm, and you should too.

Have a song recommendation? Please email me.

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