//Georgia struggling to hire in new report

Georgia struggling to hire in new report

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ATLANTA – Wallethub releases updated data showing Georgia ranking as the 3rd biggest in the country struggling to hire employees.

Release:

Labor force participation is at one of the lowest rates in decades at 62.3% according to updated data released by WalletHub. The data compared the rate of job opening in 50 states and the District of Columbia for the latest month and the last 12 months.

Georgia has been struggling to hire with a rate of job openings at 8.40% the latest month and 8.02% in the past 12 months ranking 3rd biggest in the country struggling to hire.

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?

“There are several reasons for this problem. One reason is due to what is called structural unemployment. Simply put, there is a mismatch in the supply of labor and demand for labor based on set of skills. For example, South Caroline needs automakers and plane makers, but if the available pool of labor does not have these skills, there is a shortage of labor. Secondly, the Covid virus caused the closure of some K-12 schools, and children were obtaining education from home via their computers, which forced some parents to stay home and leave their job. Thirdly, among some individuals, benefits received via stimulus checks increased their incomes and savings and allowed them to pause their demand to work. Finally, some individuals realized that the labor market is ‘hot,’ and they can get a better deal somewhere else. This is called frictional unemployment since they resign and then shop for a better job.”
Miren Ivankovic – Adjunct Professor, Clemson University

“Employers may have difficulty filling employment positions if: the job description does not attract potential applicants because it overstates expectations regarding training or experience, or contains too many duties such that it appears to leave applicants with no time to breathe or move forward on a career growth path, or the promised salary and benefits are not comparable to others in the market, or the employer has a bad reputation for how it treats its employees. Job applicants read information online… Glassdoor is one of many sites that give employees information that may discourage them from applying. Employers need to consider housing and other living costs in the region where the job is located when they post salary ranges. Unavailability of work from home or a reputation for inflexibility regarding WFH might be another deterrent for some potential applicants.”
Christine N. O’Brien – Professor, Boston College

What are the main factors that are influencing the high turnover rates in the labor market?

“Turnovers happen mainly when someone is not happy with their work for a few reasons. Perhaps the main reason is low pay. Wages have gone up on the per hour basis of work and salaries, but inflation is reducing those in real terms. Unfortunately, some in the labor force are simply not ready for the rigor that work presents and they tend to quit.”
Miren Ivankovic – Adjunct Professor, Clemson University

“My guess is that some of it [is] a reaction to pandemic-related factors. Some people discovered they could get by without a job, or without as many jobs in their family as there used to be, and are not eager to go back to work for low wages and/or potential health hazards (e.g., retail and other jobs with a lot of customer interaction are having a particularly hard time). The federal minimum wage has not gone up in a long time, with a result that the wages offered at similar jobs can sometimes vary a lot. This is particularly true given that few employers have matched raises with the inflation rate of the past year. So, you have things like school bus drivers being able to make more money working in a retail outlet.”
Gordon Lafer, Ph.D. – Professor; Co-Director, Labor Education & Research Center, University of Oregon

In your opinion, will this imbalance in the labor market continue to be an issue throughout all of 2022 or will it get solved faster? 

“The imbalance in the labor market could be resolved in 2022 if there is a recession, even a minor one because economic uncertainty will chill hiring as well as give workers insecurity about job mobility, causing them to stay put.”
Christine N. O’Brien – Professor, Boston College

“Markets are pretty efficient. In this case, we are discussing a labor market and with upward pressure on wages, the market should reduce the shortage. Statistics are confusing since the unemployment rate is very low, so some could ask how come there are shortages? One statistic here is important, the labor force participation rate and it seems that individuals who left the labor force are not returning to it. This is a problem that should be addressed and improved. I forecast current trends to remain during this year, but predictions are that GDP will grow at a much slower rate, even a negative rate due to Federal Reserve policies, and that will ‘cool off’ demand for labor.”
Miren Ivankovic – Adjunct Professor, Clemson University