Where have all the workers gone? Montreal economist explains

Restaurant staff are scrambling to keep up with orders, pilots are unloading bags off planes at airports, hotels are at half-capacity and hospital ERs are closing for the summer.

The reason? Labour shortage.

Where did all the workers go?

Concordia economics professor Moshe Lander says the CERB payments may have created a disincentive to want to work though it's not the full answer.

"Even though the payments have stopped, it takes a little while for people to realize that their bank accounts have emptied," he said. "The other part of it is that the wages people are getting have stagnated, and with high inflation rates, the purchasing power of those wages has fallen. That makes it really attractive for employers to want to hire workers, but it makes it unattractive for workers to want to go to work, and that's why you end up with a shortage."

Employment rates remain very high, but people are not available to fill jobs, which is puzzling economists like Lander, but the trend of baby boomers retiring during the pandemic may contribute to fewer people to fill jobs.

Low-paying jobs may also not be as attractive for Gen Z or milienials, who see that the pay with little benefits they receive will not be enough to purchase a car or house, whose prices have skyrocketed.

Lander said the trend of employers offering more than just an hourly wage, which was seen before the pandemic, is likely to continue.

"It's one of those things that employers are going to have to start thinking about," he said. "What is it that workers really want and make sure that find a way to provide it."

-- Watch the full interview with CTV News anchor Amanda Kline above.