Neither. Labor markets are tight. That improves employees’ bargaining power. The time since our last jobs recession means more may choose to trade that leverage for free time versus savings. (I certainly have.)
I think those on the broad right are also undervaluing the power of idle hands at this point in time: some small percentage curious people with free time are largely responsible for innovations in society that everyone benefits from, the rich most of all.
We still need at this point, new ideas with which to feed into the training data of the coming AI labor decimators.
Because of the slow burn of this, the labor market is in a bit of a Mexican Standoff. How this resolves or concludes, I cannot predict. Services labor would tighten if immigration of all sorts was constrained, labor that requires firm authorization checks would tighten faster if some combination of Boomers leaving the labor force faster or workers 55+ aging out faster occured.