Why It’s So Hard to Fill Jobs in Certain States

We all know that job creation in the United States is lagging behind other developed countries, but there are many reasons for this. For a number of years, we have seen the U.S. economy lose steam, and the number of full-time jobs that need to be filled has been shrinking for years. In recent months, job growth and the number of available jobs have increased, but not enough to offset the loss of jobs in the last decade.

Employers hear all the time that job openings in their states are hard to fill, and not just because of the economy. In fact, unemployment rates in many states are higher than the national average, and many of these jobs are highly sought after. It’s a tough market out there for employers to compete with, but the good news is that there are ways to make it easier. We all have the power to influence the job market.

The United States is home to the largest workforce in the world. But it lacks the necessary talent to fill jobs that are in high demand, causing the unemployment rate to hover around 5%.. Read more about work from home opportunities and let us know what you think.The labor market recovery from the coronavirus pandemic and resulting closures has been uneven across the United States, from states with five job openings for every unemployed person to states with historically high unemployment rates.

In some areas, especially less populated areas with fewer restrictions on Covid-19s – states like Utah and the Dakotas – the job market is booming, and many employers are eager to fill vacancies. Elsewhere, especially in urban areas and tourist centers that have been slower to ease restrictions – such as New York and Hawaii – labor demand has gradually recovered, making the labor shortage less acute.

Workers wanted

The northern Western Mountains, Plains and northern New England stand out as areas with a particularly tight labor market, with about three job openings for every unemployed job seeker in April, according to an analysis by job search site ZipRecruiter.

Number of advertised jobs per job seeker, April 2021

Number of advertised jobs per job seeker, April 2021

Number of advertised jobs per job seeker, April 2021

Several factors contribute to the labor shortage across the country. These include higher unemployment benefits, which can provide a financial incentive to seek low-paid work, the still limited number of schools and childcare facilities that keep parents at home, and the fear of Covid-19. In addition to the extent of government restrictions on the economy in the event of a pandemic, there are other regional characteristics that distinguish the hottest and coldest labor markets.

Rigid markets

In all three warm regions, unemployment was already below average before the pandemic, although the reasons for the current tightness in the labour market are different.

Mountain states have become pandemic refugee states, according to labor economist ZipRecruiter.

Julia Pollack.

New residents were attracted by the reduced commercial restrictions, open space and affordable housing. The new residents in turn led to increased economic activity and a greater demand for labour.

Unemployment rate in the region

Vacancies, changes from February 2020

Unemployment rate in the region

Vacancies, changes from February 2020

Unemployment rate in the region

Vacancies, changes from February 2020

The northern mountain region already had a developing technology and financial sector, and these sectors were more resilient to the pandemic than tourism and retail.

Unlike much of the U.S., the labor force in Utah and Idaho grew in 2019, avoiding a significant labor shortage. A similar dynamic exists in South Dakota.

Staff, change from April 2019.

Staff, change from April 2019.

Staff, change from April 2019.

The flat states had the fewest restrictions on business activity and could reopen the fastest. According to the European Commission’s study, these countries avoided greater job losses and enabled their workers to return to their old jobs more quickly.

Oren Klatchkin,

senior economist for the United States at Oxford Economics, an international research firm. The region is also linked to agriculture and the agri-food industry, which were considered critical sectors and remained open during the pandemic.

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Vermont has the tightest labor market in the country, with 5.1 available jobs for every unemployed person, although this statistic is not exactly the result of a vibrant economy. The labour market in Northern New England has long been characterised by an ageing population, low population growth and relatively few people coming from elsewhere.

Incomplete recovery

In other regions, labour markets are recovering more slowly. According to ZipRecruiter, there is about one job opening for every unemployed person in a western state and another on the east coast. Hawaii comes in last place with 0.7 job openings per job seeker.

Number of vacancies per job seeker, April 2021.

Number of vacancies per job seeker, April 2021.

Number of vacancies per job seeker, April 2021.

Increase in unemployment

The unemployment rate in these regions was well above the national average of 6.1% in April. Again, the reasons are not the same.

Unemployment, regional average

Vacancies, changes from February 2020

Unemployment rate, regional average

Vacancies, changes from February 2020

Unemployment rate, regional average

Vacancies, changes from February 2020

Hawaii’s economy, which depends on tourism, is still feeling the effects of the pandemic and the resulting travel restrictions. Leisure and hospitality employment in Hawaii is still about 30% below pre-pandemic levels, while hotel occupancy is below the national average this spring.

Hawaii’s labor market shows a weak relationship between positive health outcomes and economic outcomes. According to a Wall Street Journal analysis based on data from Johns Hopkins University, the state’s prevention efforts, including last year’s 14-day quarantine of people from abroad, have helped give the state the lowest incidence rate per 1,000 people. However, the measures taken in Hawaii also discourage tourists. North Dakota, on the other hand, has the highest incidence rate but a much lower unemployment rate of 4.2% in April.

New York was one of the first areas in the United States to be heavily affected by the pandemic. Authorities in New York, New Jersey, Pennsylvania and Connecticut have imposed strict activity restrictions and kept them in effect longer than in many other areas.

7. February.

Iowa removed

Applying the mask

10. March.

The governor of Texas

declares the state

fully restored

May 19.

New York allowed

full capacity

indoor dinner

June 15.

California

Planning

coarsest

Restrictions

1. April

The New York Yankees and Mets may reopen their stadiums at 20% capacity.

7. February.

Iowa removed

Applying the mask

10. March.

The governor of Texas

states that the state is fully

reopened

1. April

The New York Yankees and Mets may reopen their stadiums at 20% capacity.

June 15.

California

Planning

coarsest

Restrictions

May 19.

New York City has allowed

full capacity

indoor dinner

7. February.

Iowa removed

Applying the mask

10. March.

The governor of Texas

states that the state is fully

reopened

May 19.

Big Apple

Activate the site

full capacity

indoor dinner

1. April

The New York Yankees and Mets may reopen their stadiums at 20% capacity.

June 15.

Planning in California

remove most of the restrictions

It wasn’t until mid-May that full meals were allowed in New York. For comparison: Iowa has lifted restrictions on activity during the winter months, and Texas has been active since the 10th. March has been declared fully open.

Similar factors apply in California. Until mid-June, certain activities will be restricted.

The slow recovery in neighboring southwestern states is largely due to industries, including tourism in Nevada and the energy sector in New Mexico, which are still suffering from the negative effects of the pandemic.

-Anthony DeBarros contributed to this article.

Sources of schedules

ZipRecruiter (number of job openings per unemployed job seeker); Department of Labor (unemployment rate, leisure and hospitality jobs, labor force participation rate); Indeed (change in job openings); WSJ reports (state decisions).

Email Eric Morata at [email protected] and Stephanie Stamm at [email protected].

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