Unemployment rates are the rate of people looking for work, and higher rates usually indicate a lack of open jobs. Lower rates mean there are more jobs available. It does not necessarily mean there are more people in the labor force. That’s a separate metric. But even if more people are working, a labor shortage is still possible. Why? A shortage happens when there is more demand for something than there is supply, so it can happen at any level of supply, if there is enough demand. So even if there are more workers, if employers want to hire even more, there could be a shortage.
Theres a pool of eligible workers, and low unemployment means more people in that pool are working. More total actual workers rather than potential.
Unemployment rates are the rate of people looking for work, and higher rates usually indicate a lack of open jobs. Lower rates mean there are more jobs available. It does not necessarily mean there are more people in the labor force. That’s a separate metric. But even if more people are working, a labor shortage is still possible. Why? A shortage happens when there is more demand for something than there is supply, so it can happen at any level of supply, if there is enough demand. So even if there are more workers, if employers want to hire even more, there could be a shortage.