OKLAHOMA CITY – Four plausible reasons for Oklahomans not returning to work after the first year of the COVID-19 pandemic were debated during a study hosted Tuesday by state Senator Carri Hicks, D-Oklahoma City.
The interim study, held at the state Capitol, brought together business leaders, legislators and policy specialists. The study was conducted by the Senate Business, Commerce and Tourism Committee.
Four reasons cited during the study suggest federal unemployment benefits disincentivize workers, lack of child care, COVID-19 anxiety and low-quality jobs.
Oklahoma Policy Institute specialist Josie Phillips and Senior Budget and Tax Policy Analyst Paul Shinn believe the federal unemployment benefits had the least impact on people returning to work. Citing a study of states that cut off federal benefits early, the OPI duo said about a two percent increase in people returned to work. Instead, they believe the other theories are the real reasons Oklahomans have not returned to the workplace.
“The biggest component to getting Oklahomans back to work is giving them the freedom to do so,” Shinn said. “This means ensuring that their children are cared for while the parents are away, providing workers a job environment safe from COVID, and helping Oklahomans find jobs that can provide the security and dignity they deserve.”
Paula Koos, executive director for Oklahoma’s Child Care Resource and Referral Agency, verified OPI’s research on lack of child care and affordable child care as a major problem in Oklahoma. She said even before the pandemic, more than half of Oklahomans lived in a child care desert, meaning there were no child care facilities in close proximity to families.
She noted the following examples: Cimarron County has no centers; Beaver County has only three and Texas County has 20. With many child care centers shutting down during the pandemic, it is nearly impossible for families to get into one now, she noted. Working parents also struggle to find centers that offer nontraditional care before 6:00 a.m. or after 6:00 p.m., limiting the jobs they can apply for or forcing them to stay out of the workforce altogether.
Koos noted that low pay and rigorous licensing and training requirements are deterring many from getting into the child care industry, further compounding the problem.
Meanwhile, Joanne Davis, executive director for the Oklahoma City Black Chamber of Commerce, talked about the problems facing small businesses, especially those owned by minorities and women. She said they are struggling financially, working to keep their customers and employees safe through increased safety protocols and changing their food and product options as market prices continue to skyrocket.
Business owners also are updating their technology to better accommodate customers, and taking other steps trying to stay afloat, Davis said. But often times, their work is in vain, though, as they are faced with a limited pool of workers. Once employers get employees, quarantines, child care issues and other problems, typically leave them short-staffed further hurting their business. She explained it is a constant struggle for small businesses to compete in the everchanging pandemic workforce.
“If small businesses can’t afford $15 to $18 an hour, provide health benefits or offer telework options, their pool of perspective employees is extremely low,” Davis said. “COVID has tentacles that are far-reaching and if we don’t address these issues, they will impact small businesses for years to come.”
Sen. Hicks said she’s glad to better understand the reasons for Oklahomans not returning to work.
“While the pandemic has added to our state’s workforce issues, it’s apparent through our study that it’s not necessarily the main problem,” she said. “The workforce is changing; employees’ needs are changing, and employers are going to have to rethink how they do business and the benefits they provide for their employees. Families need livable wages, access to affordable child care and assurances that their workplace has protocols in place to keep them safe from COVID-19.”
However, not all of the news was bad. Drew Dugan, of the Oklahoma City Chamber of Commerce, noted that Oklahoma City is almost back to full employment compared to 2019, with the city’s unemployment rate sitting around three percent.
Through a survey of their approximately 3,500 members, the Oklahoma City Chamber of Commerce has found that companies are changing how they do business due to the pandemic. Employers’ main concerns are finding and retaining qualified workers, keeping their employees and customers safe from COVID-19, and providing sufficient benefits that will make them competitive in the workforce. They also found that 10% of their members are planning to permanently continue remote work.
The speakers said the heaviest-hit industries have been leisure and hospitality, health and education services, food services and transportation.