Hello everyone and welcome to this episode of Ignition Time.
The former CEO of McDonald's has actually warned that elevated job openings amid
the labor shortage will lead to a catastrophe.
This is a grim warning about jobs and unemployment in 2022.
In fact, a record 4.5 million Americans
actually quit their jobs in November of last year.
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The former CEO of McDonald's, Ed Rensi.
He argued that Americans are feeling the labor shortage big time.
And he said that this situation is, "a nightmare."
Rensi was actually speaking with Fox News
host Neil Cavuto on coast to Coast Cavuto show, and he warned that continued
elevated job openings amid the labor shortage will lead to a catastrophe.
In fact, he made these comments shortly after it was revealed that a record number
of Americans quit their jobs in November of 2021.
And this actually highlights how
persistent the turmoil is in the labor market and how this has made it very
challenging for employers to fill open positions.
Now let's take a look at the former McDonald's CEO Ed Rensi as he explains
what he calls the confluence of events leading to the labor shortages as data
revealed a record number of Americans quitting their jobs in November 2021.
Let's roll the tape and see what Rensi had to say.
Let's check it out.
I have no idea if this continues the way
it is, it's going to be nothing but a greater and greater catastrophe.
One of the things I think we're
overlooking a little bit is that the baby boomers were born from 1946 to 64.
The oldest is 76 and the youngest is 58.
But the first child of the baby boomers is starting to reach 56 years of age.
So the retirement numbers are going to start to accelerate and there's going
to be a lot of upward mobility because they're leaving the workforce,
which is going to leave a shortage at the bottom end.
And boy, we're feeling it big time
in restaurants, barber shops, daycare centers.
It's a nightmare. And the other problem we got the pandemic.
This new strain of virus is causing people
to stay home because they're ill and applying for unemployment.
And the unemployment benefits are very
rich and there's no reason to go back to work.
So if you've got a confluence of events
here that are really starting to pile on top of one another.
Now, we're coming into this season
in the summer when we need part time workers in restaurants and other places
because of seasonality, we're never going to find them.
And we're starting to substitute automation and digital for people.
And we're also resetting the business in restaurants, particularly resetting
the menus, resetting the operating hours, cutting back on the days we're open.
It's going to be a major, major change in what's happening
in the restaurant industry and other small businesses because of this shortage.
Folks, as all of this is happening, the US Labor Department said that 4.5
million Americans that's 3% of the workforce actually quit their jobs
in November, and this was matching the high from September.
Now this is up from 4.2 million Americans
who actually quit their jobs in October, and it tops the previous record of 4.4
million Americans who quit their jobs in September.
Think about this for a second.
The prepandemic level was about 3.6 million.
But post pandemic, 4.4 million Americans
quit their jobs in September, 4.2 million quit their jobs in October,
and 4.5 million quit their jobs in November.
In fact, all of this data came before the highly contagious Omicron variant
of the Corvette pandemic of the Corvette virus began disrupting the economy.
In fact, resignations in November were concentrated in specific sectors like
accommodation and food services, health care, and social assistance,
not to mention transportation, housing, and utilities.
A majority of people quit for a new job.
In fact, Rensi stressed that if the trend continues the way it is,
it's going to be nothing but a greater and greater catastrophe.
Let me know what you think in the comment section below.
This is definitely alarming.
This new data actually suggests that new
workers, empowered workers actually quitting their jobs in favor of better
wages, better working conditions, and more flexible hours because many
businesses are trying to attract new workers with higher salaries.
This is a trend that I have covered on our channel.
It's a trend that I call the Great Resignation.
In fact, Rensi pointed to a factor that he believes no one is talking about,
and he said more retirements are contributing to the problem.
In fact, I have done another video on our
channel where I've talked about retirement,
creating what could potentially be a big crash in the US economy.
It's definitely affecting jobs and employment as we know it.
In fact, Rensi said that the oldest
of the baby boomers is 76 and the youngest is 58.
And he said, I quote,
the first child of the baby boomers is starting to reach 56 years of age.
So the retirement numbers are going to start to accelerate and it's going
to be a lot of upward mobility because they are leaving the workforce,
which is going to leave a shortage at the bottom end.
In fact, Rensi is saying that more and more people are going to retire.
He said we are feeling it big time
in restaurants, Barber shops, daycare centers.
And he stressed that it is a nightmare.
He also said that the pandemic is contributing to this problem.
He said, I quote, this new strain of virus
is causing people to stay home because they're ill and applying for unemployment.
And the unemployment benefits are very rich and there's no reason to get back
to work and he stressed that there is a confluence of events here that are
really starting to pile up on top of one another, he said.
Now we're coming into the season
of the summer when we need part time workers in restaurants and other places
because of seasonality, and he said we are never going to find them.
He warned that automation is becoming more
and more common as a substitute for employees.
He said, we also resetting the businesses in restaurants, particularly resetting
the menus, resetting the operating hours, cutting back on the days we are open.
Remember, this is the former CEO of McDonald's.
Mcdonald's knows a thing or two about automation.
In fact, they invented automation in businesses in the way burgers were made.
He also said this it's going to be a major change in what's happening
in the restaurant industry and other small businesses because of the shortage.
Now I want you to let me know what you think in the comment section below.
Let me know whether you agree or disagree with these comments from Rensi and whether
you think automation is actually impacting the future of American jobs.
I believe that automation is going to change America forever.
But this is very alarming because as Rensi
points out, there are a confluence of events.
There are many things happening
at the same time which have the potential to forever change the American economy.
Let me know where you stand on this and also please click the like button.
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I believe that the future of jobs is bright for those who put in the time,
the energy and the effort to train themselves.
However, if you haven't done that, Then the future could be very grim indeed.
Just like Rensi points out, I'll talk to you soon.
Thank you so much for watching this episode of Ignition Time.
Take care, bye.