April 2022 Jobs Report: Employment Services Save Employers During Labor Shortage

Job Openings Increase in the Western and Southern U.S.

According to the latest Job Openings and Labor Turnover report from the Bureau of Labor Statistics (released March 29th, 2022), the number of job openings remained unchanged at 11.3 million available jobs. However, there were some shifts in where the available jobs were. Both The Western and Southern parts of the U.S. experienced job opening increases of roughly 100,000 jobs each, while the Northeast and Midwestern regions of the U.S. saw decreases of roughly 100,000 jobs each.

The number of unemployed persons decreased by 318,000 to 6.0 million. Nothing seems to have changed for employers as they continue to struggle in finding quality employees in this highly competitive job market. Many have turned to alternative methods of recruiting such as talent sourcing and creative marketing to reach more people or potential employees.

Understanding the Great Resignation

Year over year, we have seen an increase in voluntary quits by nearly 1 million. Looking back as far as 2019 (prior to the pandemic), the monthly voluntary quit levels reached an all-time high at 3.6 million in July of 2019. We are now looking at a monthly average of 4.3 million quits over the last 5 months, surpassing the previous all-time high by nearly 1 million.

We’ve touched on this topic before in past job reports and have found some common reasons for this phenomenon:

• Labor Shortage – Let’s face it, there are simply more available jobs open than available workers. Job seekers and employees alike are very aware of this fact and utilize the competitive market to leave their jobs for ones with higher pay, better benefits, more flexibility, etc. (CBS).
• Burnout – Many younger workers have found that the cost of staying at a job is higher than the cost of leaving due to burnout (Forbes).
• Hybrid/Remote Options – 56% of U.S. workers surveyed said that adjustable working hours and remote work are a priority (CNBC).
• Job Hopping – The younger working generations are more likely and more willing to switch jobs or careers. “75% of Gen Z’ers say they're willing to switch career paths entirely and look for jobs in new industries.” (Axios)
• Culture & Values – Younger working generations are also more inclined to work for companies and brands whose culture and values align with their own. (Axios)

If finding and hiring the best candidates wasn’t already difficult in this national labor shortage, the great resignation only makes it that much more. These difficulties employers are facing is precisely why we have been seeing tremendous growth in Employment and Business Services over the last two years.

Employment Services Save Employers During Labor Shortage

As companies continue their struggle to hire from the overwhelmingly-limited talent pool, many are relying on employment and business services to fill their empty chairs and support their necessary business needs. Jobs added in employment services increased by an additional 6,600 in March of 2022 with 4,900 of those jobs in Temporary Help Services alone. These kinds of services have become the number one lifeline for employers as they battle the labor shortage and great resignation.

Some Industries Reach Pre-Pandemic Employment

Many industries have been struggling to reach their pre-pandemic levels of employment. However, due to recent necessity and economic growth, some industries have finally reached their pre-pandemic employment. One of these industries (that has also been trending upward in jobs recently) is construction. With 19,000 jobs added in March, construction has finally returned to its February 2020 job levels. Due to the necessity for more construction workers, wages have also increased by 6% from $27.01 to $28.66 year over year.

Other notable changes occurred in some industries as follows:

• Real Estate: 6,300 jobs added
• Rental and Leasing: 7,400 jobs added
• Administrative and Support Services: 35,400 jobs added
• Repair and Maintenance: 4,400 jobs added
• Professional and business services: 102,000 jobs added

JWilliams Staffing is here to help your company navigate the workforce. We have a strong network of job seekers who are ready to work, and expert recruiters who carefully screen, train, and identify the cross application of skillsets in candidates necessary to excel in their career. Learn more about our temporary and direct hire staffing services today!

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Sources:

Bureau of Labor Statistics. (2022a, March). JOB OPENINGS AND LABOR TURNOVER – FEBRUARY 2022. https://www.bls.gov/news.release/pdf/jolts.pdf

Bureau of Labor Statistics. (2022b, April). THE EMPLOYMENT SITUATION — MARCH 2022. https://www.bls.gov/news.release/pdf/empsit.pdf

By JWilliams Staffing