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Workplace Culture

Job openings lag as uncertainty about pandemic, politics persists

Meghan McCarty Carino Jan 12, 2021
Heard on: Marketplace
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Amid persistent economic doldrums and widespread uncertainty, few companies entered 2021 with expansion in mind. Angela Weiss/AFP via Getty Images
Workplace Culture

Job openings lag as uncertainty about pandemic, politics persists

Meghan McCarty Carino Jan 12, 2021
Amid persistent economic doldrums and widespread uncertainty, few companies entered 2021 with expansion in mind. Angela Weiss/AFP via Getty Images
HTML EMBED:
COPY

New data on job openings and postings provide a glimpse of what to expect in the job market in the coming weeks and months.

This time of year typically sees a spike in hiring and job-search activity, said Jill Chapman with Insperity, a recruiting services firm.

“Sort of, ‘Fresh start, new year, let’s kick it off,’ ” she said.

But that kind of optimistic planning for the future isn’t really the vibe these days.

“I think that we’re still feeling, ‘Let’s just take a pause, let’s just look, let’s just wait,’ ” she said. “We’re all just collectively holding our breath.”

That sense of unease was reflected in lagging job postings at the end of the year on the job search site Indeed.

“Recovery is not happening as quickly as it had been earlier in 2020,” said Jed Kolko, chief economist with Indeed.

Job listings were down about 11% in December compared to a year earlier. The decline was concentrated in industries directly hit by the pandemic like tourism and restaurants, but it was also felt in sectors like tech and finance.

“That’s not because those sectors are doing worse in the pandemic,” Kolko said. “Those higher-wage sectors tend to make longer-term decisions.”

They’re looking at the economic picture months or even years into the future, he said.

And that picture is still pretty murky, said Andy Challenger, senior vice president at staffing firm Challenger, Gray & Christmas.

“The economy has been racked with unbelievable uncertainty, both because of the pandemic but also a large amount of political uncertainty.”

Fair to predict, that will likely be the case for some time to come.

COVID-19 Economy FAQs

What are the details of President Joe Biden’s coronavirus relief plan?

The $1.9 trillion plan would aim to speed up the vaccine rollout and provide financial help to individuals, states and local governments and businesses. Called the “American Rescue Plan,” the legislative proposal would meet Biden’s goal of administering 100 million vaccines by the 100th day of his administration, while advancing his objective of reopening most schools by the spring. It would also include $1,400 checks for most Americans. Get the rest of the specifics here.

What kind of help can small businesses get right now?

A new round of Paycheck Protection Program loans recently became available for pandemic-ravaged businesses. These loans don’t have to be paid back if rules are met. Right now, loans are open for first-time applicants. And the application has to go through community banking organizations — no big banks, for now, at least. This rollout is designed to help business owners who couldn’t get a PPP loan before.

What does the hiring situation in the U.S. look like as we enter the new year?

New data on job openings and postings provide a glimpse of what to expect in the job market in the coming weeks and months. This time of year typically sees a spike in hiring and job-search activity, says Jill Chapman with Insperity, a recruiting services firm. But that kind of optimistic planning for the future isn’t really the vibe these days. Job postings have been lagging on the job search site Indeed. Listings were down about 11% in December compared to a year earlier.

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