Arizona No. 8 Least-Impacted State During Labor Shortage

PHOENIX, AZ – September 17, 2021 – AZ BUSINESS MAGAZINE

A new study finds Arizona is the No. 8 state least impacted by America’s labor shortage crisis which surged to a record 10.9 million unfilled jobs through August.

The study, which also includes D.C., found that our nation’s capital has been the hardest hit, followed by Nebraska and New Hampshire.  The least impacted states are led by Hawaii, New York, and California.

Arizona is No. 8 with .56 job openings per unemployed person.

READ ALSO: Here are the fastest-growing jobs in Arizona

The number of unemployed Americans fell to 8.3 million, which means there are currently enough jobs for every unemployed American with 2.6 million jobs left over.

CareerCloud today released a study on the  Labor Shortage Impact Across America using data from the Bureau of Labor Statistics (BLS), Indeed, ZipRecruiter, and CareerBuilder through August. The rankings were determined by measuring the number of unemployed people and job openings in each state.

10 States Hit Hardest by the Labor Shortage Crisis (Includes D.C.):

1. D.C.: The most impacted area with 2.37 job openings per unemployed person.
2. Nebraska: 1.80
3. New Hampshire: 1.60
4. Vermont: 1.59
5. Utah: 1.45
6. South Dakota: 1.44
7. Idaho: 1.29
8. Montana: 1.21
9. North Dakota: 1.20
10. Georgia: 1.12

10 States Least Impacted by Labor Shortage Crisis:

1. Hawaii: The least impacted state with .41 job openings per unemployed person.
2. New York: .45
3. California: .45
4. Nevada: .50
5. Connecticut: .51
6. Louisiana: .52
7. New Mexico: .53
8. Arizona: .56
9. New Jersey: .59
10. Illinois: .59

Here are 4 Tips to Help Business Owners Fill Jobs During the Labor Shortage: 

1. Pay Above the Market Rate: For perhaps the first time, minimum wage workers have leverage due to government aid and are holding out for higher pay. The number of  $15 an hour job postings has doubled on Zip Recruiter since 2019 and companies like McDonald’s, Amazon and Chipotle have raised pay this year for hundreds of thousands of workers. Business owners of all sizes will need to increase pay to keep up.

2. Lean into Remote Work in the Short and Long Term: Giving employees the chance to work from home now, as the delta variant spreads, is a must. Additionally, a McKinsey survey found that even after the pandemic, 52 percent of workers want a hybrid model working from home and the office.  Allowing those who can, to work from home will be an enormous long-term incentive.

3. Incentivize Commuting for Jobs That Must be Done In-Person: Now that people learned they can work remotely and earn similar money, they do not want to commute.  Harvard Business Review research found a 1% increase in distance to work leads to a 4.4% decrease in commuting flow across the country.  Employers could subsidize commuting costs, provide a corporate shuttle, and offer longer but fewer shifts.

4. Be Flexible with Parental Leave: It is difficult for both parents to return to work with children in and out of school. With no substantive government guidance in place, businesses must act. Hewlett-Packard launched a “Work That Fits Your Life” program that offers six months of fully paid parental leave for new moms and dads with an option to work part-time for up to 36 months. For smaller businesses, being compassionate and flexible with parental leave will attract candidates.