Kansas City Jobs Report

The data finally tells a happy story.

As you can see, the report brings largely positive news. As CNBC so clearly put it, “Record jobs gain of 4.8 million in June smashes expectations; unemployment rate falls to 11.1%.” And what a relief it is! Because amid COVID-19, it’s been nothing but a struggle for months on end.

One specific bit of information that caught our eye, is that the non-essential industries of leisure & hospitality and retail lead the way in job creation—an indicator that American consumers are feeling more confident and willing to spend their disposable income.

Here at Adecco, we’re optimistic, but we’ll continue to monitor the data, react accordingly, and remain committed to the well-being of our associates, colleagues, and clients—knowing that the pandemic’s unpredictable peaks and valleys might change the dynamic yet again.

What does this mean for finding job candidates?

While 11.1% unemployment is the lowest we’ve seen in months, it’s still far higher than the pre-COVID rate of 4.0%. On the surface, it’s easy to think high unemployment means easier hiring, but in this unprecedented time, that’s not the case.

Why? Because the federal government’s $2.2 trillion Coronavirus Aid, Relief, and Economic Security Act (CARES) has made recruiting more difficult. Don’t get us wrong; we support the act. It has literally changed lives by preventing poverty and stimulating the economy. Just know that it does present challenges for our staffing professionals and your business.

CARES delivered stimulus checks of up $1,200 to individuals and expanded unemployment insurance in various ways, including adding $600 weekly to state unemployment checks for up to four months, and offering an additional 13 weeks of state unemployment insurance. This means that some Americans have just as much income, if not more, than they did in their pre-COVID jobs (equivalent of $24/hour or $50,000/year), compelling them to take a break from seeking employment.

The future of the CARES Act is somewhat cloudy. While the $600 weekly payments are slated to stop at the end of July, they could be extended. And COVID test results, economic projections, and political grappling in Washington could lead to an evolving act for some time. There’s enough “TBD” for all of us to remain flexible.

For now, just know that the size of America’s talent pool is limited to some degree. While there’s potential for sharp growth in a few months’ time, there’s no guarantee. And for you and us, that means uncovering every stone to find workers and taking measures to entice them back to the workplace. Whether that means offering better pay, increased benefits, and/or other perks, it’s less of an option and more of a requirement.