Post-lockdown economy creates hiring challenges for employers

They’re having to work harder to attract employees



OPPORTUNITIES—Businesses are still struggling to hire while workers are reluctant to return to their jobs.

OPPORTUNITIES—Businesses are still struggling to hire while workers are reluctant to return to their jobs.

People are returning to work, school and daily activities, but the labor market has not been so quick to recover from the pandemic and its upheaval of the economy.

Although it’s been more than a year since the COVID-19 outbreak caused unemployment rates to skyrocket and the workforce to plummet, businesses are still struggling to hire while workers are reluctant to return to their jobs.

To help understand the post-lockdown labor market landscape, the Acorn spoke to Bruce Stenslie, head of a countywide business advocacy nonprofit, and Aaron Mercer, an executive at a regional staffing company. The two shared insights about recent employment numbers as well as advice for job hunters and those doing the hiring.

“This is the largest disruption of work and worker-employer relationships possibly in the history of the country,” said Stenslie, president, and CEO of Economic Development Collaborative. “The No. 1 thing I think every business needs to think about is flexibility.”

Recovery
In June, Ventura County had a 6.4% unemployment rate, compared to 8% in California and 6.1% across the U.S., according to an Employment Development Department report. These numbers are all higher than the February 2020 rates of 4.3% (county), 3.7% (state) and 3.5% (country).

Additionally, Ventura has lost about 15,000 workers since the pandemic started, according to the most recent labor market report.

One of the biggest takeaways from current data, Stenslie said, is the hesitation of workers to return to the labor market, especially to physically demanding but low-paying jobs, such as those in the restaurant or hospitality industries.

“Workers are smart,” Stenslie said. “We can’t blame them. It’s not the unemployment insurance money that is keeping them from coming back to work. It’s that workers are being really careful and cautious.”

The pandemic also pushed older workers to retire.

“Retirements have accelerated, and they don’t need to accelerate by a lot to have a big impact on how many workers are available,” Stenslie said.

Economic recovery will be slow, said Stenslie, who expects the unemployment rate to return to pre-pandemic levels in early 2022.

“We have no idea what normal is anymore, and normal is not going to be where we were before the pandemic,” Stenslie said.

More important than the unemployment rate, Stenslie said, is the total number of jobs. Ventura County gained 1,200 jobs in June but is still down over 11,000 since last year.

Mercer, vice president of business development and marketing for Express Employment Professionals, said the idea of normal is not a helpful lens through which to view the economy. Employers will have to get creative and offer incentives to lure employees back to work, he added.

Mercer said this means companies will have to “be flexible and quick to adapt” as the job market adjusts in the coming months.

Advice
Although smaller businesses may not have the resources, Stenslie and Mercer said, employers need to reevaluate their wages, benefits, and company culture to entice candidates.

“More people will be looking for work; however, it still is important for companies to make jobs more attractive,” Mercer said. “You have to figure out ways to make people want to work for you.”

As for those seeking work, the two said there are now countless opportunities, especially entry-level positions.

Mercer said anyone who wants to find a job or change careers should start the process as soon as possible because when unemployment benefits begin expiring in September, it will be more difficult to secure a position.

“There is going to be a mad rush of people looking for work, so it’s going to be very competitive,” he said.