KEY POINTS
- There are 8.6 million people considered out of work in the U.S. and nearly 10 million job openings.
- Employers are using a number of incentives, including pet insurance and signing bonuses, to fill those positions.
- “One of the biggest factors is employers are essentially having to buy back job applicants’ Covid lifestyle,” said one HR executive.
Employers in the U.S. face an interesting challenge ahead – how to fill nearly 10 million job openings with about a million fewer workers than there are positions available.
How successful they are will go a long way in determining whether the recent strong of outsized job gains can continue.
The Department of Labor reported Friday that there are some 8.7 million potential workers who have been looking for jobs and are counted among the unemployed. At the same time, job placement site Indeed estimates there are about 9.8 million job vacancies as of July 16, or just a few days after the government’s sample period for the monthly numbers.
Companies have been using a variety of techniques, including signing bonuses, higher salaries and flexible working arrangements, to entice people. That likely will have to continue as the Covid-19 pandemic changes the jobs market, perhaps permanently.
“This is one of the most complex labor markets in recent memory,” said Scott Hamilton, global managing director for the human resources and compensation consulting practice at Gallagher, a global insurance brokerage, risk management and consulting firm. “One of the biggest factors is employers are essentially having to buy back job applicants’ Covid lifestyle.”