Mitch McConnell says the labor shortage will be solved when people run out of stimulus money because Americans are 'flush for the moment'

• Businesses have been complaining about how difficult it is to hire for a long time.

• There are some drivers of labor shortages.

• According to McConnell, labor shortages will end when workers run out of money.

Lawmakers and businesses have been complaining about how hard it is to find workers.

There are many reasons why there's labor shortages, including people moving away from locations with open positions, parents not being able to return to work, and open roles not being the right fit.

McConnell gave a theory at an event in Kentucky on Tuesday.

The Kentucky Republican said that a lot of people are sitting on the sidelines. Once they run out of money, they will conclude that it's better to work than not work.

After two previous rescue packages were approved by the Trump administration, McConnell opposed President Joe Biden's law which passed with only Democratic votes. The Republicans have blamed the direct payment to Americans for worsening inflation and keeping people out of work.

There are many Americans working. The recovery of the labor market is on track to be complete by the summer. The employment-population ratio for Americans ages 25-54 has crept above July's levels.

Workers are quitting their current jobs for new ones because they aren't sitting on the sideline. Even as hiring and job openings are strong, Americans have been quitting at near-record rates. Many people are quitting for higher-paying jobs, especially in low- wage industries, which have struggled the most to hire.

Kentucky was the center of the Great Resignation. Structural conditions existed before the Pandemic and were only worsened by it. There is a lack of affordable child care, a low minimum wage, and concerns over safety during the Pandemic.

Several federal rescue packages helped Americans build up a huge amount of savings. The extra cash cushion built up by households through the end of the year is estimated by Moody's.

In June, the same investment firm said that Americans had begun to draw down their savings with prices rising at their fastest pace in four decades.

Business Insider has an article on it.