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Why Has Hiring Become Difficult Despite The Economy Reopening?

The current state of the U.S labor market has not improved, making it difficult for recruiters to fill vacant requisition. Although the current unemployment rate is at 7 percent, meaning there are over 9 million Americans actively looking for work, there are still major labor shortages in industries that never recovered from the 2020 Pandemic and are desperately trying to rebuild teams.

Unlike companies that are still shut down due to Covid – 19 regulations, businesses that received the green light to continue production are in high growth mode and adding new jobs to keep up with current trends every day. Despite exciting new job opportunities, companies have seen a significant decline in worker’s desire to pursue employment.

While many reasons can be discussed around why the current job market is undesirable amongst the U.S., a few factors stand out the most.

Unemployment Benefits

After millions of Americans were laid off due to the pandemic, monthly and weekly benefits to keep people afloat became income that resulted in financial freedom. Employees went from making $800 a month to $1200 a month from unemployment benefits plus an additional $600-$1200 stimulus payments. The extra cushion gave people the opportunity to pay off debt, improve their situation and maintain a new lifestyle that most people aren’t ready to give up just yet. Research found that every 10 percent increase in the unemployment benefits a person received corresponded to a 3 percent decline in the number of jobs that received an application. “The government is making it easy for people to stay home and get paid. You can’t really blame them much. But it means we have hours to fill and no one who wants to work.” According to Tom Taylor, owner of Sammy Malone’s pub in Baldwinsville, N.Y.

Fear of Sickness

Realistically, no one wants to get a potentially fatal disease from taking orders at Mcdonald’s. So it’s understandable why people are hesitant about returning to their regularly scheduled programs. In addition to an employee’s fear of possibly contracting Covid-19, some employees may be ready to return to work but live with someone battling an autoimmune disease. The possibility of putting a loved one at risk from working a public-facing job can add to a worker’s disinterest in returning to work.

Although the FDA has approved vaccinations, many people are indifferent about becoming vaccinated which puts them in a state of not wanting to return to work in general.

Complicated Schedules

Flexibility has become something that has to be a priority in workplaces, and unfortunately, some businesses cannot accommodate every unique schedule. Families that are now taking on the role of teacher, nurse, or guardian due to new schedules are less inclined to pursue a job because they simply cannot find flexible roles.

Granted, the economy is slowly reopening, but if schools, daycare centers, and elder care are still limited, there will be a constraint in companies finding reliable workers.

The Solution: Hire A Staffing Agency

One way to combat these issues and recruit active job seekers is to partner with a trusted staffing firm. A staffing firm saves HR managers and recruiters time and money when in high growth mode. They do this by strategically weeding through uninterested candidates and finding you the best talent for your team.

At MVP Staffing, our goal is to make your life simpler. With factors like the economy slowly reopening and a fluctuating labor market, find security in your recruitment process by partnering with us.

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