There are several other factors that contribute to the current state of the workforce and the high unemployment rate. These include elements such as extended unemployment insurance (UI) benefits, a reshuffle of the workforce, childcare and school disruptions, and foreign workers’ inability to come to the U.S. for jobs.
Extended UI Benefits
State-provided unemployment insurance (UI) benefits and pandemic unemployment assistance (PUA) were used to support those in need throughout the pandemic. The rate of $300 per week for 46 weeks made it easy for Americans to continue making roughly $17.50 an hour for almost an entire year from the comfort of their home. Because of this, there was little motivation for prospective employees to job hunt.
Reshuffle of the Workforce
The recent significant changes in the workforce have been labeled as the “Great Resignation” as we’ve seen millions of Americans quit their jobs. Since the Great Resignation, many people have decided to change job or career paths and have jumped back into re-education. College enrollments across the U.S. increased for the Fall 2021 semester and people are looking to switch into new fields and careers.
Many individuals who left their customer service jobs at the beginning of COVID-19 chose to leave service for good in order to pursue employment in warehouse and distribution facilities, for example. Customer service jobs are in high demand as a result of this.
Childcare and School Disruptions
Another factor that significantly affected the current state of our workforce was parents’ ability to provide adequate childcare for their children who were no longer able to attend school in person. Most states kept public and private schools shut until the Fall of 2021. Due to this, many parents were required to be home with their children. Parents turned into teachers and more than 1.8 million women left the workforce entirely.
Lack of Foreign Workers
Foreign workers account for a large amount of job retention in the United States, but they were, unfortunately, unable to transfer into the states due to COVID health mandates. This left several industries including farming, hospitality, and ski resorts to be understaffed and at a disadvantage.
What does this mean for the current state of the workforce moving forward?
Given the current unemployment rate and the factors involved in what makes up today’s labor force, it’s evident that the state of our workforce is taking a major turn. Employers everywhere are having difficulties hiring and retaining quality employees which are putting several industries and businesses at risk of failing.
There are, however, resources at an organization’s disposal to help. An experienced PEO or staffing and recruiting company can help business owners and hiring managers find valuable candidates to fill their unoccupied job roles.
Working with a professional workforce administration company, like The Applied Companies, can help set your company up for success. TAC has been part of the Reno community since 2002 and prides itself on thoughtful solutions and authentic relationships.
Our Reno staffing solutions help employers in need of a professional, reliable, and ambitious workforce. We work to provide you with quality candidates to help you grow your business and decrease turnover to save you time and money. Connect with us today for help growing your team.