Labor Shortage Driven by 'Quiet Quitting' Trend of Working Fewer Hours

The labor shortage is partly due to employed people working fewer hours, not just people dropping out of the workforce. Data shows a significant drop in hours worked, especially among highly educated men working 50+ hours per week.

This "quiet quitting" trend is linked to the pandemic causing people to reevaluate work-life balance. Remote and hybrid work enabled cutting back hours while remaining employed.

Even with labor participation near pre-pandemic levels, job openings remain high and unemployment is very low, showing the impact of fewer work hours.

Companies are trying to claw back employee free time through office mandates, but if hybrid work sticks, overwork may not return to pre-pandemic levels.

Working fewer hours aligns Americans more closely with international peers and can benefit employers through less burnout and longer careers. The trend seems collective and lasting so far.