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Whirlpool CEO says he is worried' the U.S. labor shortage becomes structural

Whirlpool CEO says U.S. labor shortage is a structural problem

October 25, 2021: On Thursday, the CEO of American appliance maker Whirlpool told CNBC’s Jim Cramer he’s “starting to get worried” the U.S. labor market could face structural challenges in the years ahead, even following the various pandemic-related hurdles have been cleared.

There are millions of jobs open in the U.S. Still, many employers have said filling them has proved to be more complicated than expected even as a broader range of economic activity picks up from Covid-linked slowdowns.

Economists say multiple factors are behind the current labor market, including workers having health concerns, juggling care responsibilities, and unsatisfactory wage offerings at vacant positions. The retirements and savings built up during the pandemic may also limit the number of people returning to the workforce. Even though the Covid pandemic’s damaged the economy, experts are stressing that the barriers to entry will take time to subside.

Bitzer’s comments hit on the fundamental, overarching challenge the American economy may face in the years ahead, and he is not the first executive to discuss it with Cramer.

Last week, Domino’s Pizza CEO Ritch Allison raised concerns about “minimal population growth organically” in the U.S. combined with a slowdown in immigration. Cramer then described his conversation with Allison as “shocking” and “sobering,” which suggested the issues were not getting enough attention.

On Thursday, Cramer made a similar point when speaking with Whirlpool’s Bitzer, after the Michigan-based company reported mixed third-quarter results. Earnings for each share of $6.68 topped Wall Street’s estimates of $6.12, while revenue of $5.49 billion decreased short of the projected $5.74 billion.

Shares of Whirlpool decreased over 2% in after-hours trading as investors reacted to the quarterly numbers. The stock closed the regular session Thursday down 0.64% at $207.90 per share, and it’s up about 15% year to date.

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