With the labor force participation rate at 62.5% and 0.8 percentage points below pre-pandemic levels, WalletHub released its report on 2024’s States Where Employers Are Struggling the Most in Hiring, as well as expert commentary.
In order to see where employers are struggling the most in hiring, WalletHub compared the 50 states and the District of Columbia based on the rate of job openings for both the latest month and the last 12 months.
New York Hiring Struggle Stats
- Job openings rate during the latest month: 4.60%
- Job openings rate in the past 12 months: 4.43%
- Overall rank: 5th smallest hiring struggle in the country
Expert Commentary
Why do employers have difficulties in filling employment positions?
“There are many reasons attributed to the increased competition in the labor force. We have seen job growth recover and continue to rise since the pandemic. However, labor force participation during the pandemic is just now hitting close to pre-2020 levels and is still below the levels in the late 2000s. This is complicated by the accelerated rate of baby boomers retiring during the pandemic and the decrease in overall hours worked by those in the labor force. These difficulties can also be felt unevenly in industries where there is already a talent shortage, such as information technology and healthcare.” – Abbie Lambert, Ph.D., PHR – Assistant Professor, University of Central Oklahoma.
“In today’s professional environment, across generations, potential employees are highly considering the type of work upon which they engage. Although this is not a new direction for any job-seeker, the pandemic allowed many to reflect upon what is important in life – and this often does not mean working in a traditional role (9-5) or even working remotely, where work is often monitored and the ‘on camera’ presence is deemed necessary throughout the date. Additionally, work ethic has diminished. The impetus to strive for excellence, to go above and beyond, and to even compromise work/life balance as was done more so in the past, no longer exists. This new mindset also impacts professionalism. There have been many instances that I have come across where professionalism is simply absent. Lastly, the ‘Gig Economy’ has led many Millennials and GenZ individuals to seek work, even ‘just to get by’, to ensure their personal happiness, and personal time, and to enjoy what they do. This trend has grown over the past 4 years, and I suspect that it will continue to be an alternative approach to traditional employment.” – Dr. Dena Bateh – Adjunct Faculty, Rochester Institute of Technology.
How can employers attract and retain employees during this troubling period?
“The simplest method, though not the easiest, is to pay more. You can also widen the pool of workers you can attract and retain if you can offer remote or hybrid options. Can you find ways to pull in people who are out of the labor market, not currently working, or looking for a job? If not, you are in a fight with other employers about who can pay the most or otherwise offer the better job.” – James Bailey – Associate Professor, Providence College.
“This is an excellent time for employers to build or revise their employee value proposition (EVP). Employers can begin this process by speaking to current and recent employees about their experiences at work and what is important to them. They can also benchmark their offerings compared to their competitors in their labor market. Once current strengths and opportunity gaps are discovered and evaluated through the lens of the organization’s strategy, detailed plans can be built that focus on elevating and communicating the EVP. For many employers, this will include focusing on the factors that cause high turnover. Employers may do this by building positive workplace cultures that value well-being and trust while decreasing burnout and stress, offering flexible working arrangements that promote better work-life balance, providing competitive compensation and benefits packages, fostering stronger relationships between managers and employees, and communicating clear career paths within organizations so employees can see how they might grow with the company over time.”
Abbie Lambert, Ph.D., PHR – Assistant Professor, University of Central Oklahoma
In your opinion, will this imbalance in the labor market continue to be an issue throughout all of 2024 or will it get solved faster?
“The Federal Reserve projects that the unemployment rate will increase from its current level of 3.7% to 4.1% throughout 2024. This implies that hiring will get easier than it is now but remain more difficult than it has been in most of the past 20 years.” – James Bailey – Associate Professor, Providence College.
“This is an interesting question. We are seeing more announcements of layoffs recently, but the reduction of jobs overall remains historically low. We have also seen some evidence that employees are less likely to leave now than during the great resignation. In the near term, I would not be surprised if we continued to see heightened competition for labor mostly due to job growth without the corresponding equal increase in available labor. Beyond that, due to the recent developments in artificial intelligence, it will be very interesting to see how companies reimagine roles to utilize human intelligence (HI) + artificial intelligence (AI) and how this reimagination will change the labor market. Many sectors of the economy such as entertainment, transportation, and medicine are already adapting to the opportunities and challenges that AI and technological advancements present. Employers and employees alike will be navigating these impacts throughout 2024 and beyond.” – Abbie Lambert, Ph.D., PHR – Assistant Professor, University of Central Oklahoma.