The pandemic gave US workers more leverage over employers than they’d had in years.
Burnt-out and fed-up, they quit their jobs at all-time-high levels in 2021. Meanwhile, a labor shortage forced companies to give them the biggest raises on record.
It helped that Americans had an extra savings cushion thanks to the federal government’s pandemic aid. This gave them the ability to switch jobs at a higher rate than their European counterparts, who mainly were put on paid furloughed by their governments. But that job switching could slow down as the US abandons extra pandemic help, such as child care tax credits and student loan deferrals.