Jamie Dimon, the CEO of JPMorgan Chase, suggested Thursday that some Americans don’t feel like working now. As a result, many companies are having problems hiring workers to do the jobs.
Lots Of Money Nowadays
During a House Financial Services Committee Meeting yesterday, Jamie Dimon said that people have lots of money nowadays.
Because of that, many “don’t particularly feel like going back to work” despite the many job offers. Dimon, who earned $31.5 million in total compensation last year, did not elaborate. Many industries, such as restaurants and factories, did confirm their struggle with hiring new workers.
The House Finance Committee also asked Jamie Dimon and other major bank CEOs what they think about the record-high 8.1 million job openings available last March.
Dimon said many factors affected the job market. This included challenges with reopening schools and the enhanced unemployment benefits given to the jobless during the pandemic.
Three Main Causes
Economists cited three main causes for the worker shortage. They are lingering health concerns, a lack of childcare, and the $300 boost to federal unemployment benefits.
Combined, these factors make it harder for companies to fill up lower-wage positions. As a result, many GOP-run states removed the enhanced unemployment benefits to entice people to get a new job.
For example, Honeywell, the world's largest industrial company by market value, is having hiring problems. Despite increased wages, “we have far more openings than I'd like, frankly,” CEO Darius Adamczyk told CNN Business last week.
‘Inept’ Public Policy
In addition, Dimon did have some parting shots for politicians about the US economic challenges. He reiterated his recent criticism of public policy, specifically around infrastructure, healthcare, taxation, immigration, and regulation.
“American leadership really matters. If we don't get our academic act together, we won't be a leader in 20 years,” he said.
During his annual shareholder letter Wednesday, Dimon wrote that the Covid-19 pandemic, the George Floyd BLM issue, and the slow economic growth since the 2000s are all part of a bigger problem.
They are all results of inept public policy and government dysfunction. “Unfortunately, the tragedies of this past year are only the tip of the iceberg.
They merely expose enormous failures that have existed for decades and have been deeply damaging to America,” Dimon wrote.
Worker Shortage a ‘Serious Concern’
The House hearing included testimony from the leaders of the six largest US banks. Bank of America CEO Brian Moynihan called the worker shortage a serious concern. Meanwhile, Jamie
Dimon also reiterated that he’s optimistic about the economic recovery and the jobs market. “Rest assured, I think we are going to see a completely booming economy and a lot of people going back to work. Hopefully, it will continue for quite a while,” he said.
Watch the CNBC Television coverage of the House Banking Committee where major bank CEOs testify before the Senate Banking Committee:
Do you agree that some Americans don’t feel like going back to work right now? What do you think is the biggest reason for it?
Let us know what you think about the increased worker shortage. Share your comments in the comment section below.