The US Struggling with 'Labor Shortage'... Gradual Relaxation of Minor Labor Regulations

Arkansas, USA Abolishes Minor Labor Permit Process
"Risk of Exploitation by Employers" Criticism Also Raised

In the United States, which is suffering from the worst labor shortage in history, there is a growing movement to ease regulations on minor labor.

According to major foreign media on the 11th, Arkansas recently relaxed regulations on minor labor.

Under existing laws, employers in Arkansas had to submit a detailed plan of working hours for minors aged 16 and under, along with the signature of the minor's parent, to the state government in order to employ them. The Arkansas state legislature passed a bill abolishing this permit acquisition process, and Governor Sarah Huckabee Sanders signed the bill into law.

Governor Sanders' office stated that the passage of this bill is aimed at eliminating unnecessary regulations. While protecting minors is important, requiring permits to work placed an excessive burden on parents.

However, there has been criticism as well. Since the existing permit acquisition process was not complicated, there was no need to abolish the permit procedure itself. Laura Kelums, a member of a child protection organization in Arkansas, expressed concern, saying, "Minors growing up in neglectful households are at risk of being exploited by employers."

Under current federal law, minors aged 14 and over are not allowed to work during school hours, and weekday working hours cannot exceed 3 hours. Minors not attending school cannot work more than 40 hours per week.

Job advertisement posted at a cafe in New York, USA [Image source=Yonhap News]

The current U.S. labor market is experiencing a comprehensive labor shortage across various sectors, from general office jobs to chefs, production workers, nurses, teachers, truck drivers, police officers, and firefighters.

Accordingly, states such as Georgia, Iowa, Minnesota, Ohio, and South Dakota have submitted bills to their legislatures to ease minor labor regulations similar to Arkansas. New Jersey, New Hampshire, and Illinois passed laws last year raising the allowable working hours for minors.

Matthew Bodie, a professor at the University of Minnesota Law School, explained the increase in minor working hours by saying, "Employers want to have the available workforce work more hours."

On the 10th, the U.S. Department of Labor released an employment report stating that nonfarm payroll jobs increased by 311,000 last month. Although this is lower than the 504,000 job increase in January, it is much higher than the market forecast of 200,000 predicted by experts.

By industry, leisure and hospitality service jobs increased the most by 105,000. Other increases were seen in retail (50,000), government public positions (46,000), professional office services (45,000), healthcare (44,000), and construction (24,000). On the other hand, employment in information technology and telecommunications sectors declined.

Conversely, the unemployment rate in January was 3.4%, the lowest in 54 years since May 1969. In the same month, the number of job openings was recorded at 10.82 million, surpassing 10 million.

Experts analyze that this labor market boom appears to be a result of the aftermath of the COVID-19 pandemic, but in reality, it is due to demographic trends such as the retirement of the baby boom generation and a decrease in immigrants, with COVID-19 only accelerating these trends.