Worker shortage: many start new businesses

With American workers quitting at record rates, the country has a labor mismatch and far more job openings than the number of unemployed people. However, a new analysis shows that the one reason for the job crunch comes down to entrepreneurship. According to an analysis of Census data by Economic Innovation Group (EIG), through September, a record number of 1.4 million Americans filed applications to start new businesses. Most of these startups are in the fields of manufacturing or retail- sectors that are likely to create jobs versus freelancers who typically work independently. 

Kenan Fikri, director of EIG says that the growing number of businesses is a good sign for the economy despite the constrained labor market. He added that a lot of these entrepreneurs are targeting opportunities opened by the pandemic, such as "ghost kitchens" that prepare meals only for takeout or delivery only. "Part of this Great Resignation was also Americans deciding that they didn't want to work for anybody — they wanted to work for themselves. That's just exacerbating the pinch that employers are feeling", Fikri told CBS MoneyWatch.

Source: CBS News