The Great Omicron Sickout: Millions Of Unwell Americans Causing “Hellacious” Worker Shortages

Record spikes in Covid-19 Omicron cases across the country are causing a nationwide worker “sickout,” as businesses from airlines to grocery stores are suffering from disruptions, even though the new variant is markedly far less severe – yet far more transmissible – than prior strains.

According to Delta Airlines CEO Ed Bastian, the past few weeks have been “hellacious,” adding that around 10% of his workforce, or 8,000 of his employees, have contracted the virus in the past month. The shortages contributed to over 2,200 canceled Delta flights since December 24.

Although a precise count of the number of employees who are out sick or quarantining is hard to come by, about 5 million Americans could be isolating due to COVID-19 at the peak of Omicron, according to Andrew Hunter, senior U.S. economist at Capital Economics. That could reflect about 2% of the nation’s workforce forced to stay home due to illness, he added.

Some employers report taking a harder hit. Stew Leonard Jr., chief executive of supermarket chain Stew Leonard’s, said about 8% of his staff was out sick or quarantining last week. That affects what shoppers find on store shelves. –CBS News

“That’s the highest we’ve ever had,” said Leonard Jr. “What we are doing is the same as every other business — you have to limit your product line.”

“Like I talked with my bakery director, and she said, ‘I make a great crumb cake, and I also make a great apple crumb cake, but when I’m short on people I’m not able to make the apple crumb cake.’ You’ll get crumb cake, just not the apple crumb cake.”

As we noted earlier this month, Omicron poses a major risk to Fed confidence about reaching maximum employment relatively soon.- READ MORE