OKLAHOMA CITY – Businesses of all types are facing labor shortages, but many are finding ways to cope with the lack of employees, according to Digital.com.
The protracted coronavirus pandemic has resulted in Americans re-evaluating their relationship to their jobs. Record numbers of Americans have quit their jobs and started their own businesses, hired on with new employers, or have retired.
Workers are demanding higher pay and flexible hours, including work-from-home schedules. A July 20 survey of 1,250 U.S.-based business owners found that just 13% of them had not been affected by a labor shortage.
Nevertheless, the majority of the survey respondents are investing in automation, retraining their employees, paying higher wages to attract new hires, or outsourcing their work.
Digital.com, an independent website that reviews products, services and software, said its survey showed that:
• 3 out of 4 business owners have considered or invested in automation to resolve their labor shortages.
• Of those business owners who have turned to automation, 55% believe the shift “will permanently cut back labor.”
• 73% think the labor shortage will lessen as state and federal unemployment benefits expire.
The American Rescue Plan Act extended federal pandemic benefits through September 6, 2021. However, Governor Stitt on May 17 issued an executive order decreeing that Oklahoma would no longer offer COVID-related unemployment benefits effective June 26. In turn, Shelley Zumwalt, executive director of the Oklahoma Employment Security Commission, notified the U.S. Department of Labor of Oklahoma’s termination of its agreement to participate in federal PUA, PEUC and FPUC unemployment programs.
Lawsuits were filed against both Stitt and Zumwalt, and the issue was still pending in the Oklahoma Supreme Court as of August 16.
• 71% of the business owners who were surveyed by Digital.com said they have considered or already have invested in freelancers or offshore labor in response to their labor shortages.
“Freelancers may require less training and can be more specialized to handle special projects or offload specific tasks to free-up the burden on existing employees to handle more core jobs,” marketing executive Huy Nguyen said. Nguyen is a successful growth marketer with extensive experience in digital marketing, online business development and Amazon marketplace operations. He has held executive management positions in industry-leading organizations from startups to the Fortune 100.
In other industries, such as service and hospitality, use of remote workers or freelancers “may not be as easy to adopt,” Nguyen said. Those companies are “looking toward automation and self-service technology to provide a more personalized experience to their customers,” he said.
HIGHER PAY, RETRAINING, NICHE PRODUCTS
A little over 7 out of 10 of the business owners surveyed said they have had to adjust their offerings as a result of the labor shortage; for example, they are selling more niche products such as subscription boxes.
An equal number say they have implemented “upskilling or reskilling” training programs “to better help current employees fulfill jobs” that business owners would otherwise have hired someone to do.
Three-quarters of the business owners said they would be willing to pay higher wages to attract new workers, and also would be willing to increase benefits for new hires.
The results were “somewhat more divided,” Digital.com reported, when the issue of a $15 per hour minimum wage was mentioned. A little over 20% thought that was too high, while 59% said they think $15/hour would be fair.
“The extension of federal unemployment benefits is one factor that may be contributing to the labor shortage,” Nguyen said. “I believe we will see more job openings filled when these programs end, because people will need money to live.”
However, he continued, “There are other considerations such as child/family care needs and people changing industries to find jobs that provide greater benefits such as remote work, flexible schedules, and greater pay.”
Nearly 1 in 3 U.S. workers under the age of 40 have thought about changing their occupation or field of work since the coronavirus pandemic began last year, and 17% have moved, either temporarily or permanently, according to a poll conducted July 6-21 by the Washington Post and the Schar School of Policy and Government at George Mason University in Virginia.
BENEFIT CLAIMS DECLINE IN OKLA.
In a related matter, the Oklahoma Employment Security Commission (OESC) reported a decline in first-time claims for jobless benefits and the four-week moving average of initial claims, with continued claims and the continued claims’ four-week moving average also declining.
“For the past few weeks, Oklahoma has seen unemployment claims numbers continue to decline,” OESC Executive Director Shelley Zumwalt said. “The continued claims’ four-week moving average is the strongest indicator of the direction employment is heading in the state, and we are continuing to see that average decline.”
• For the filing week ending July 31, the number of initial claims totaled 3,533, a decrease of 190 from the previous week.
• For the same file week, the less volatile four-week moving average of initial claims was 4,859, a decrease of 810 from the previous week.
• The number of continued claims totaled 29,690, a decrease of 2,664 from the prior week.
• The four-week moving average of continuing claims was 34,911, a decrease of 1,605 from the previous week.