The Indicator from Planet Money · Friday, August 7, 2026
Experts argue that when individuals remain in jobs solely for health benefits, it creates 'friction' in the labor market, preventing it from functioning optimally. This situation impedes the natural flow of workers to roles where they are most productive and satisfied, and it limits employers' ability to find the best-suited candidates.
“For the labor market to work, well, we want people to to be able to move around.”
“Um, so that people can get into jobs where they're most productive and most satisfied. Um, where employers can find, you know, the most qualified workers. Uh, if people are feeling locked into jobs because of health benefits, it just means a lot more friction in the labor market. Um, it's not going to function as well, or our whole economy is not going to function as well.”