(FOX BUSINESS) – The U.S. economy is facing the worst labor shortage in close to a century, according to new research, raising the prospect of prolonged higher-than-usual inflation.
In an analyst note to clients, Goldman Sachs economists, led by Jan Hatzius, estimated that there is a shortage of 4.6 million workers in the U.S. – the most since the World War II period. That number takes into account the total number of available jobs, of which there is a near-record, and the size of the labor force.
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As a result, Americans' incomes are rising across the board as employers have hiked wages in an increasingly competitive market to hire new workers. The Goldman economists said they expect employers to face an even tougher, and more expensive year, finding workers: Wages are expected to climb 5% in 2022 as companies fight for talent.