Hiring Challenges for the Upcoming Future

13 October 2023
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What is the current unemployment rate in the US?

According to the latest data from the U.S. Bureau of Labor Statistics1, the current unemployment rate in the US is 3.8% as of September 2023. This is the same as the previous month and slightly higher than the market expectations of 3.7%. The number of unemployed people was about 6.36 million, while the labor force participation rate was 62.8%. The unemployment rate has been fluctuating between 3.5% and 3.8% since March 2023, indicating a tight labor market and a strong economic recovery from the pandemic.

What are the upcoming hiring challenges?

The current job market is highly competitive, which makes it challenging for employers to attract and retain top talent. The insurance industry faces several challenges in that regard. Let’s review some of them:

  • The skills gap remains a major issue for many employers, who struggle to find qualified candidates for their open positions2. Some possible solutions include reaching out to non-traditional hiring sources, offering training and development opportunities, and partnering with educational institutions3.
  • The Great Resignation continues to affect many industries, especially those that require in-person attendance and have lower wages, such as food service and hospitality4. Many workers are quitting their jobs in search of better work-life balance, flexibility, compensation, and culture. Some possible solutions include offering competitive benefits packages, enhancing employee engagement and retention strategies, and providing hybrid or remote work options.
  • The labor shortage persists across different sectors, such as transportation, health care and social assistance, and accommodation and food services. These sectors have the highest numbers of job openings, but face difficulty in attracting and retaining workers. Some possible solutions include increasing wages and incentives, improving working conditions and safety measures, and expanding candidate reach and diversity5.

In addition both information and conversational models and technologies have a significant impact on the back office of big companies. One of the main benefits is the automation of routine tasks which can free up employees to focus on more complex and strategic work. Conversational models, such as chatbots, can handle customer inquiries and complaints, reducing the workload on employees.

Data analytics tools can also be used to analyze large amounts of data, providing insights that can help optimize back-office processes and improve efficiency. Additionally, these technologies can facilitate communication and collaboration among employees, regardless of their physical location.

However, these technologies also pose some challenges. For example, there may be resistance from employees who are not familiar with or comfortable using the new technologies. There may also be concerns about data privacy and security, particularly if sensitive information is being shared through these channels.

Overall, the impact of information and conversational models and technologies on the back office of big companies is a complex issue that requires careful consideration and planning to ensure successful implementation.

A lot of companies in the insurance industry are struggling to find employees. Everyone’s wondering where are the applicants? Allow us to share with you some considerations. 

1. The American Rescue Plan Act

The American Rescue Plan Act (ARPA) went into effect on March 11, 2021, and their plan to act included the following:

  • Increasing Direct Payments to $1,400 for working class Americans
  • Cut childhood poverty in half
  • Housing assistance for 12 million Americans struggling to pay their rent
  • Unemployment benefits boosted
  • Safely reopen schools
  • Funding for vaccine distribution
  • Relief for businesses

Fast forward to September 6, 2021, and the ARPA has extended their critical employment benefits that help unemployed people pay their bills and care for their families.

The ARPA also extended their $300-per-week federal supplement to weekly benefits that provides enough additional weeks of federally funded benefits to ensure unemployed individuals will continue to receive benefits while the nation is recovering from the global pandemic. For the tens of millions of workers who have been available to work because their jobs were gone, or because of family obligations, health care concerns, or unsafe workplaces, the ARPA focus has been to help the unemployed stay afloat.

Research conducted by Bank of America’s, Global Research organization, states that nationwide, workers who earn less than $32,000 annually could make more money on unemployment than they can earn from work.

To put it plain and simple, why work when you can make more from unemployment insurance?

2. Afraid They Might Get Sick

There is evidence that shows a relationship between the number of people who have been vaccinated and a rise in employment rates.

A study conducted by Aaron Sojourner (an American economist) said, “Every 10-percentage point increase in cell’s share fully vaccinated is associated with a 1.1- percentage point increase in employment. The first-order issue is the virus, and if that’s what caused the crisis, then it is also the path out of the crisis. Crushing the virus is the solution to both the supply problem and the demand problem.”

The bottom line is there’s not one single person who wants to contact a deadly disease while doing their job.

3. Family Care Concerns

Based on a survey taken in late March by The Census Household Pulse, 6.3 million people were not working because of a need to care for a child not in school or daycare, and another 2.1 million people were caring for an elderly person. Combined, those numbers amount to nearly 14 percent of the adults not working for reasons other than being retired. (NY Times)

If daycare centers, schools and elderly care remain limited, as the businesses start to re-open, there will still be challenges in finding employees.

4. Higher Salaries

While businesses are scrambling to save funds by cutting hours and changing operations, some experts also recommend raising wages. Saying that it could provide for a more permanent solution to the worker shortage.

“It’s going to be a shock to companies that are paying low wages,” said Marc Wulfraat, the president of Logistics Consulting Firm. “They’re going to be the ones that are hit the worst, because all that low-wage labor is going to find a home elsewhere—where there’s more money to be made.”

As companies scramble to address labor shortages, experts say higher pay is the only real solution (Business Insider).

Whatever the reason is your company is facing hiring challenges, Staff Boom is always at the ready to help you with your unique staffing needs. Leave the staffing work to us and focus on growing your business! Contact Staff Boom now!

Kelly Wade

Business Development Manager

Kelly Wade is a Business Development Manager at Staff Boom. With a bachelor’s degree in business from Azusa Pacific University and a cosmetology license, Kelly brings a unique blend of expertise to her role. Since joining in 2018, Kelly has played a vital role in the company’s growth by bringing in new clients and fostering strong, lasting relationships with them. She takes great pride in her ability to find innovative solutions that truly benefit customers, and her genuine care for people shines through in every interaction. While she decided to leave her cosmetology practice behind to pursue a career in sales, she still finds joy in occasionally using her hair styling skills on a smaller scale.

Outside of work, Kelly embraces her role as a proud wife and mother. Her daughter keeps her busy with a wide range of activities, and Kelly strives to balance her professional and personal life to ensure quality time with her family. As a passionate sports fan, particularly when it comes to football (Go Saints!), she knows how to bring that same enthusiasm and dedication to her work and personal interests.

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