As the COVID-19 pandemic continues to linger, businesses in several US states are finding it difficult to hire workers, despite the labor force participation rate being down to one of its lowest levels in decades at 62.4%.
At the height of the pandemic, millions of Americans lost their jobs amid stay-at-home orders. While many of these jobs have returned, a phenomenon known as “The Great Resignation” has resulted in many Americans quitting their jobs. Consequently, businesses continue to struggle to hire enough workers, leading to service delays and reduced business hours.
According to a recent WalletHub survey, Alaska, West Virginia, Louisiana, Montana, and Iowa top the list of states struggling to turn the corner regarding hiring. The personal finance website compared all 50 states and the District of Columbia based on the rate of job openings for the latest month and the past 12 months. WalletHub analyst Jill Gonzalez stresses that the report only looked at job opening rates and did not delve into the reasons behind them in each state. However, she stated that the states with the lowest difficulties in hiring are those where employers offer the flexibility and benefits that employees are looking for, such as higher wages or the possibility to work from home or remotely.
Gonzalez advises businesses still struggling with staffing issues to focus on making things more about the worker. “Employers from the states with the biggest hiring struggles should increase the wages and improve the benefits they offer,” she said. “For example, they could allow work from home where possible. Providing a work environment that values employees is a key factor in improving the hiring outlook.”
While the labor force participation rate has seen some recovery for prime-age workers, it will take time to return the labor force market back to its pre-COVID days, according to Gonzalez. The main reason for the rate dropping was the large number of people who retired when the pandemic came, both expectedly and unexpectedly.