Several reports from last week suggest that the labor market may be recovering. Unemployment insurance claims fell nationally and here in Washington. Perhaps more important, the October jobs report showed the national economy added 531,000 new jobs and revised upward estimates for the two previous months' disappointing numbers.

Still, labor shortages continue to challenge employers, as the chart below from the NFIB jobs report shows.

The pandemic has accelerated the need for additional training and education throughout the economy. An excellent piece published by The Hechinger Report finds that making that job-to-career change will require most workers to gain additional training and education.

We've reported in the past on the skills gap in Washington, which is explored well in the 2017 report Pathways to Great Jobs in Washington, and developed in a series of subsequent reports on the importance of post-secondary credentials, most recently Path to 70% Credential Attainment: Recovery and Reimagining. The focus of. the research is preparing students of today for the abundant career opportunities in Washington, most of which will require that post-secondary credential. 

Now, apply that same logic to adults seeking new career opportunities. Obtaining the credential is a challenge for those already working long hours and who often have additional family responsibilities. Yet, it's a challenge that must be addressed, both for the workers seeking to upgrade their skills and for the economy to continue its recovery.

In a recent column, Association of Washington Business president Kris Johnson addressed how manufacturers in our state are tackling the two issues of labor shortages and supply chain disruptions. He writes,

...manufacturers are scrambling to find new suppliers for needed materials, and they’re looking for talent everywhere they can, from high school and college technical skills programs to finding pathways for people who were formerly incarcerated.

Labor force participation, which is tracked by the AWB Institute down to the county level on a database called the Vitals, shows statewide participation at 64.7% in 2020. However, that number may decline in 2021 based on the number of people leaving the workforce.

Taxes are scheduled to go up next year, the Washington Research Council reminds us. In a brief blog post, the WRC reviews scheduled payroll tax hikes. As the group reports, there's some discretion attached to the paid family and medical leave tax.

In a separate report, the WRC points out that Washington again has the nation's highest workers' compensation benefit costs.

The House passed the $1 trillion infrastructure bill Friday night. We provide links to some news coverage here and expect much more to follow as the details receive additional scrutiny.

We also want to point to our blog post citing a Seattle Times editorial on infrastructure needs here and another on the problems plaguing the state ferry system.