Workers essentially have two sources of potential power vis-à-vis their employers: a union or the implicit threat that they can quit and take another job. During the last year, employers have been forced to compete for workers in a way that has not happened since the end of the 1990s. Workers gained leverage because the American Rescue Plan Act has generated a strong recovery from the COVID-19 downturn with substantial demand for workers at the same time that millions of workers are out of the labor force due to health and safety concerns or pandemic-related care responsibilities. As a result of this increased leverage, workers have seen strong wage growth and have been able to quit jobs in record numbers and take jobs that are better for them.
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