Living through a pandemic left us with a lot of unknowns for the future. And though none of us really thought things would get back to “normal,” we have all anticipated the day that we could begin moving forward again. As vaccines roll out and mask mandates cease, it’s easy to speculate how things will look going forward, especially within the labor force.

 

Unemployment Rates

In April 2020, just one month after the initial lockdown order was issued, Texas unemployment rates reached an all time high of 12.9%. Fortunately, as of May 2021, the unemployment rate was reported at 6.5%. It’s safe to say that things are improving, with rates dropping by nearly half in just over a year’s time. Sadly, even with the decreasing unemployment rate, companies are still struggling to find suitable candidates to hire.

We covered a number of reasons for these struggles in our article: “Why is Hiring Hard Right Now?”. One of the biggest hurdles employers are facing is the role that government assistance programs have played. With the federal order increasing unemployment benefits by $300 a week, people have procrastinated their return to work. This has also allowed people the time to reevaluate what is important to them. This will take place even more as companies continue to return to the office.

As many have embraced the remote environments they’ve gotten used to, we’ve also seen a major increase in resignations. This has given employers the opportunity to look at their current structure while creating new ideas to help redevelop their teams. Although federal benefits are not set to expire until September 2021, Texas has opted out of all related programs effective June 26, 2021. The purpose of this decision is to help encourage employees to return to the workforce.

 

 

The Push to Have Employees to Return 

The labor shortage continues to challenge Texas during its phased reopenings. Fortunately, economists believe this issue is temporary. As more vaccines roll out and government aid expires, experts predict an increase in the workforce. Governor Abbott’s decision to terminate these benefits early has many Texas businesses looking forward to rebuilding their teams in the coming months.

 

Studies show that the number of unemployed workers nearly matches the number of job openings. Many employers now offer higher salaries to attract potential employees. Currently, reports indicate that nearly 45% of job openings pay over $15.50 an hour, while only 2% list minimum wage. Although higher pay may push up inflation and slow America’s recovery, economists predict it will balance out over time.

 

A Post-Pandemic Labor Force

We have come a long way, and we still have more ground to cover before we know where the economy will land. Employers across the state anticipate a stronger labor force once the benefits expire. Unfortunately, it is still too early to fully predict what the labor force will look like post-pandemic. The good news is that Texas is taking the first step toward normalcy. Though some continue to push back, many believe the time has come to encourage people to return to work.

 

 

Hire Priority understands the struggles that this pandemic has brought, and we are here to help as we transition to better days. With our top screening and training programs, we can help your company find the right fit for your new normal. Contact us today to see how we can help!