The New Labor Crisis is the Biggest Opportunity in a Generation Details LABOR WATCH-The COVID-19 pandemic has left pain and tragedy in its wake. But it has also created a unique opportunity to address the country's persistent class divides, thanks to a persistent lack of labor resulting from the pandemic. In a world economy that has seen labor's share of income drop for generations, this labor shortage could provide some restored leverage for both white and blue collar workers. The labor shortage was a reversal from the earlier impact of the pandemic on labor. Initially, COVID-19 devastated the working class and parts of the private sector middle class; the harsh lockdowns imposed in many places caused upwards of one third of small businesses to close down permanently and decimated the service industry.