Missouri’s economy, like much of the United States, is at a crossroads. On one hand, job openings abound in nearly every industry.
On the other, businesses – from farms to factories – are struggling to find enough people willing to work. The result is a paradox that’s defining the post-pandemic era: a labor shortage in the midst of economic opportunity.
On the farm: Adapting to the labor crunch
Few places feel the pinch more acutely than Missouri’s farms. Agricultural work has long depended on seasonal labor, and today’s farmers face growing difficulty finding workers willing to take on physically demanding jobs.
In response, Missouri farmers are increasingly turning to technology.
Zach Talbott, who runs a rice farm in Butler County, has adopted a new irrigation method – furrow-irrigated rice – that reduces water usage and labor needs. His family farm, like many others, is also planning to rely more on the federal H-2A visa program to bring in temporary agricultural workers.
Beyond field practices, technology is making its way into everyday farm management. GPS-guided tractors, aerial drones, automated grain bins, and digital irrigation controls are becoming common tools.
These innovations, supported by programs from the University of Missouri Extension and startups like AgButler (which connects farmers with on-demand labor via a mobile app), are helping to ease the pressure.
Still, not every challenge can be solved by tech. The root of the labor shortage runs deeper – and it’s not just an agricultural issue.
Missouri’s labor force participation rate: A closer look
The US Chamber of Commerce reports that Missouri has a Labor Force Participation Rate (LFPR) of 63.7 percent. This number reflects the portion of working-age people who are either employed or actively looking for work.
It’s calculated by comparing the number of job openings to the number of unemployed people. In Missouri:
- Job Openings: 167,000
- Unemployed Workers: 87,977
By dividing the number of unemployed by the number of job openings, we get:
- 87,977 ÷ 167,000 ≈ 0.53
This means that for every 100 jobs available in Missouri, there are only about 53 unemployed people potentially available to fill them – leaving a sizable gap.
Missouri isn’t alone. In many states, job openings outnumber job seekers, and businesses are struggling to recruit staff for roles that remain vacant for months.
A nation of job openings – and a workforce that isn’t showing up
The situation in Missouri is a reflection of a national puzzle. Across the US, millions of jobs go unfilled, even as debates around poverty, unemployment, and inequality continue to dominate political discourse.
Why the disconnect?
Some point to a skills mismatch – people can’t find jobs that match their training or qualifications. Others cite barriers to re-entry, such as lack of childcare, transportation challenges, or health concerns that linger post-Covid.
But there’s also a growing cultural factor. Many Americans, especially younger ones, are looking for more than just a paycheck. Work is expected to be flexible, meaningful, and dignified. Jobs that don’t meet that bar – especially those that are physically demanding, repetitive, or low-paid – are increasingly shunned.
In a recent opinion piece titled “Why so many jobs go unfilled”, the frustration with this phenomenon is laid bare.
The writer argues that while technology can do a lot to fill gaps, there’s no substitute for human effort. If half the country refuses to work, no number of robots or policy incentives will be enough to sustain a strong economy – or community.
When work doesn’t pay: Comparing wages and welfare
A significant factor contributing to the labor shortage is the financial calculus many individuals face when deciding whether to accept low-wage employment or rely on government assistance.
In Missouri, this dilemma is particularly evident when comparing the earnings of farm workers to the benefits available through welfare programs.
Farm worker earnings in Missouri:
- Average Hourly Wage: Approximately $16.87
- Annual Income (Full-Time): Around $35,000
Government assistance for a family of three (one adult, two children):
- Temporary Assistance for Needy Families (TANF): Up to $292 per month
- Supplemental Nutrition Assistance Program (SNAP): Up to $768 per month
- Housing assistance: Rent support varies widely, but the average rent for a 2-bedroom flat in Missouri is approximately $1,282 per month, according to Apartment List. In Kansas City, the median is $1,336, while in St. Louis, it’s $1,242. Under the Housing Choice Voucher Program (Section 8), most or all of this rent could be covered, depending on income and eligibility.
- Total potential monthly benefits (including rent): In many cases, public assistance could equal or exceed $2,300 per month, or $27,600 a year, especially when housing subsidies cover the majority of rent.
When factoring in the costs associated with employment – such as transportation, childcare, and taxes – the net gain from working a low-wage job can be minimal or even negative.
This economic reality makes government assistance a more attractive option for some, especially when the benefits provide a comparable or better standard of living without the demands of employment.
A systemic challenge: Policy and economic implications
The disparity between low-wage earnings and welfare benefits raises critical questions about the structure of the current economic and social support systems.
If individuals find that working full-time does not significantly improve their financial situation compared to receiving assistance, it suggests a need to reevaluate wage structures and benefit programs.
Potential areas for policy consideration include:
- Adjusting minimum wage levels: Ensuring that full-time employment provides a livable income that exceeds the benefits of welfare programs
- Reforming welfare programs: Creating systems that encourage employment while still providing necessary support, such as gradual benefit reductions as income increases
- Investing in support services: Providing affordable childcare, transportation, and training programs to reduce barriers to employment
Addressing these issues requires a multifaceted approach that balances the need for a robust labor force with the imperative to support vulnerable populations.
By aligning economic incentives with employment opportunities, Missouri and the broader United States can work towards resolving the labor shortage while promoting financial independence and stability for all citizens.
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