The labor shortage really affects so many areas of our lives, from airlines to hotels, restaurants and ridesharing to hospitals. And there are concerns that this labor shortage could last for years.
“A year or two. It has taken a long time to get to that point, it won’t change overnight, “said Barbie Barta, a human resources and recruitment specialist and CEO of Dallas-based recruitment company Business Centric Technology.
The data shows that the number of people of working age decreased in 2020.
Additionally, COVID-19 has led to an influx of early retirements from baby boomers. According to the Federal Reserve Bank of Dallas, about 2.6 million people who worked before the pandemic say they are now retired and not looking for a job.
“We have been expecting this for a long time, it just never materialized, but I think COVID contributed to it. I think that’s a big part of what we’re seeing with fewer people looking for work, ”said Barta.
She said that as baby boomers retire in droves, it is even more difficult to find workers to replace them.
“I think a lot of people have worked longer than usual. When it came to COVID, many of them decided: “Hey, I’m done. I’ve worked long enough and will not continue to do so. ‘”
The data from the Census Bureau shows that the US labor force decreased slightly in 2020. That’s the first drop in decades of spike.
And not just because of retirement. The decline is also due to a decline in immigration, a slowdown in birth rates, and thousands of deaths from COVID-19 over the past year.
Many had to find jobs from home, which severely affected the practical hotel and catering business.
Barta said unemployment benefits also helped keep many parents out of work during homeschooling last year.
“I think that definitely helped give people flexibility that they wouldn’t have otherwise. And now that it’s phased out in Texas – and I think 22 other states – I think we’re going to see a lot more applicants, ”she said. “I think it will just take time. I think it will be better in the fall. I think schools will be back to normal and parents don’t have to be home to study at home. “
Barta also pointed to an increase in the number of people considering and implementing career changes due to the pandemic. According to a recent survey, around 2.4 million people quit their jobs.
“I think a lot of people have chosen to rethink their work. I think the work-life balance has become more important to them. I think a lot of people had sick people in their families or maybe children who had to go to school that they had to teach at home. Maybe they weren’t so happy with their current or previous employer, ”said Barta. “You are ready to go out and see what else is there. Many of them even leave the company before they get another job. We have also started many new companies. They used to be willing to do an hourly job, but now entrepreneurs think it’s time to do what is best for me and my family. “
So what does it take to end this shortage? Barta says it could take a while for things to balance out.
“It will get better, but it will be a candidate market for some time,” she said.
Barta pointed out the silver lining in this situation – it’s a job market for job seekers.
“We also need employers who know how to handle interviews. How they are scrutinized. It’s a candidate market, ”she said.
Companies compete to hire and retain employees, so they are willing to pay more and offer rewards to attract more employees.
“If you don’t bargain when looking at a new offer, it should be you. Because now is probably the best time you ever had the chance, ”said Barta. “This is likely to be the most favorable time most candidates will ever have to get the salary they want and deserve.”
If you’re looking for a job, do your homework. Take a look at the job you’re applying for and see what the average salaries are. Barta recommends Indeed.com or Salary.com as tools to help you find this information.
“Of course you have to look at the years of experience and what other people are being paid for in the job postings,” she said. “In many states you can’t ask what your current salary is. In some states you still can. But you know your worth, you know your worth. And always ask if there is a bonus for that position. It It doesn’t hurt to ask. “
The latest job report from the US Department of Labor shows that the average hourly wage is up 3.6% compared to last summer.
Barta said that as things recover, she’s seen a 40% increase in applicant numbers over the past three weeks through her recruiting company.
“In pretty much every industry I know, hiring demand in North Texas is incredibly strong. You have to think of all the companies that have moved here in the past two years. We added a lot of additional companies, ”she said. “Our need is twice as high as before COVID. And that speaks for the labor shortage. “
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