The meat market at Smiths near our home in Albuquerque, was not able to open the meat counter for a few hours the other day because of the lack of workers. They tell me as many do, that people do not want to work, they love that the government pays them not to work!!!!! How about this report: The New America: Pharmacies are cutting hours and closing stores. What it means for customers.
From WalletHub:
With the labor force participation rate at 62.1%, one of the lowest rates in decades, WalletHub today released updated data on 2022’s States Where Employers Are Struggling the Most in Hiring, plus expert commentary.
In order to see where employers are struggling the most in hiring, WalletHub compared the 50 states and the District of Columbia based on the rate of job openings for both the latest month and the last 12 months.
New Mexico Hiring Struggle Stats
- Job openings rate during the latest month: 7.60%
- Job openings rate in the past 12 months: 7.23%
- Overall rank: 5th biggest hiring struggle in the country
To view the full report and your state’s rank, please visit:
https://wallethub.com/edu/states-employers-hiring/101730
Expert Commentary
Why do employers have difficulties in filling employment positions?
“Because they have been reluctant to raise wages in the face of full employment. Also, the available labor force has fallen because around 5 million (3% of the labor force) are out because of Covid and long Covid. And, many workers have left certain occupations (e.g., personal service and food service) to avoid Covid.”
Gerald Friedman – Professor of Economics, University of Massachusetts at Amherst
“In general, there appears to be a mismatch between the characteristics of employees who are looking for work and the types of jobs that employers are trying to fill. We have seen layoffs in the technology sector, and yet low-wage service sector jobs (e.g., hotel, retail, childcare. healthcare) are not able to find enough people to fill these positions. Employees in these sectors are looking to find positions with better pay, flexibility, and working conditions and many employers are not able to (or willing to) provide these things. As long as employees have employment alternatives, companies that are not able to meet employee demands will continue to find it difficult to fill these positions.”
Jeffrey B. Arthur, Ph.D. – Associate Professor, Virginia Tech
How can employers attract and retain employees during this troubling period?
“I think one of the most important things employers can do to attract and retain talent is to ensure that their people receive an array of value forms. These include material value, but also include physical well-being and different types of psychological esteem (self-respect, respect from colleagues, respect from the organization, and pride in the organization). Money is important, but it is more nuanced than we realize and it needs to be part of an array of value forms that generate overall well-being. To be even more effective, leaders can help their people to understand how their actions are actually co-creating the value that they and others receive. This makes work more meaningful.”
Shelley Brickson – Associate Editor, Academy of Management Review; Associate Professor, The University of Illinois at Chicago
“Research shows that higher wages increase the supply of workers who want to work at a firm and also lead to lower turnover among existing workers. If firms are having a hard time attracting and retaining workers, making the jobs more appealing – with higher wages and better benefits – will help.”
Sandra E. Black – Professor, Columbia University
What will be the economic impact, if any, of this trend?
“The impact from the household perspective is positive for the short and long run, as there does not appear to be any significant policy or structural changes on the current horizon that will reduce demand and the subsequent power they currently have over firms. The upside is that there will likely be upward mobility, where people in low and moderately-skilled jobs will have an opportunity to move up and gain experience and increased income. One might expect that the impact of unfilled positions would harm the firm. In the short run, some businesses will experience hardship because they cannot find the labor to fill the demand; however, we might need to look at the labor market differently since we are at full employment. It is not that households are not willing to work; they are willing, provided that the compensation and environment align with their expectations. The impact on businesses is they need to shift their perspective. If labor remains critical, they need to increase compensation to attract employees, train lower-skilled staff to allow for upward mobility, or add technology to increase the productivity of the current employees. These efforts will cut into corporate profits, which will likely shake out weaker players and industries.”
Jeremy Hill – Director, Center for Economic Development and Business Research, Wichita State University
“Wages will rise, especially at the bottom of the market, reversing, to at least some extent, rising inequality.”
Gerald Friedman – Professor of Economics, University of Massachusetts at Amherst
