Labor shortage preview: D-FW leads country in adding jobs
The labor market report notes that Austin has hit pre-pandemic employment levels, with D-FW and Houston not far behind.
Back in August, it was clear that Texas was a ray of hope in the country as the American economy continues to recover from the millions of jobs lost as a result of the pandemic. ThinkWhy’s LaborIQ estimates that of the 235,000 jobs created nationwide in August, almost 28,000 were in D-FW.
ThinkWhy’s September Jobs Report is out now, showing that Texas remains a job creation engine.
For September, the company again classifies the D-FW as the top workplace underground. Austin is number three on the list. The company ranks Houston as the eighth largest subway creating jobs, and San Antonio ranks 24th nationwide.
Austin is recovering to pre-pandemic employment, with Dallas and Houston following suit
The report notes that Austin has now overcome all pre-pandemic job losses and is now entering job expansion mode.
Chief Labor Analyst Jay Denton said, “Dallas is likely to regain any jobs it has lost by the middle of next year. Keep in mind, however, that there are many types of businesses, like grocery stores … tech companies … they are already in expansion mode. Houston is a little delayed, likely until 2023, mostly because of the oil and gas impact. ”
Essential takeaways for workers, job seekers, and employers in Texas
In the new report, Denton said there are some Texan workers and job seekers out there: “As an employee of companies across the country, you could be called because people are starving for talent.”
Those in jobs or looking for jobs might also be encouraged to hear this from Denton: “The pressure on employers will begin when it comes to wages.”
This is part of the realization for Texan employers: With the labor market tight (especially in the big metropolitan areas), they may now have to do more to attract and retain talent: “It’s great that we are getting people back to work “, But here too the challenge will be on the retention side. Focusing on pay or culture or whatever it is to keep people … companies really need to focus specifically on that for the rest of this year. “
Denton said employers he has encountered are already using ThinkWhy’s tools to find out how to measure the rapidly changing labor market and make salary adjustments to stay competitive.
Denton also notes that rents and house prices have skyrocketed on many major Texan metros and that businesses in major cities are having to adjust their salary offers for workforce who have to pay the higher cost of living.
For companies that have not been as proactive in this regard, Denton warns, “I would be more strategic at this point than waiting for an employee to quit because their salary has failed.”
Live in Texas but work in another state
ThinkWhy notes that we are seeing extraordinary changes in the way people work, especially the flexibility to work in one state and live in another. Although housing costs in Texas have increased dramatically, some of the state’s major cities are still relatively cheap to live in compared to the major subways in other states.
Could we see many more people choosing to live in Texas while working remotely for companies in other states?
“That’s going to be the really interesting thing,” Denton said, adding that companies will have to grapple with whether to continue paying these workers the higher salaries outside of the state or to have some sort of Texas based salary adjustment downward.
Record the number of jobs available. Where are all the workers?
After all, the company looks at where the workers have gone. The country has a record number of job vacancies, but many of the workers who have lost their jobs in the pandemic have not returned to the workforce.
Denton said there was more to this than just the now expired additional unemployment benefit. He points out that many who sit out may have fears of COVID-19 or the need (or lack of) vaccinations in individual companies.
Denton also notes that for many it is a pandemic-inspired lifestyle change: “We are … heading for 600 days since the pandemic began …
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