Job Market Outlook For The Second Half Of 2020
So far, the 2020 job market has been a wild roller coaster ride. It kicked off as one of the strongest job markets in our nation’s history. Sustained job creation, healthy earnings gains, and record-low unemployment rates had both employers and candidates feeling stable and optimistic. However, after just two months, we experienced a complete shock as the Coronavirus Pandemic led our economy to a screeching halt. Now, as states start to open back up, companies resume normal business activities, and as infection rates continue to decline, we begin to wonder about the future. Here are some of the trends you’ll see in the job market throughout the second half of 2020.
Hiring Steady Or Increasing In These Industries
As gloomy as the job market may seem, there are a few bright spots. Tech companies that have been able to transition to working remotely have largely remained unaffected. Some that focus on further enabling online connections such as Microsoft and Zoom have experienced considerable boosts in revenue. Online retailers and delivery companies have watched their business boom hand-in-hand as more consumers get more comfortable ordering online.
Additionally, industries that have been on the front lines of the pandemic have been hiring to keep up with demand. Healthcare providers, pharmaceutical companies, and supermarket chains have been scrambling to staff their workforce. Businesses that provide entertainment such as video streaming, online games, and traditional games and puzzles have been thriving as people spend more time at home.
Networking Will Be More Important Than Ever
You’ve probably heard that landing a job is “all about who you know.” And that statement will ring true now more than ever! Even prior to the pandemic, it had been estimated that as many as 70% of open positions are never even posted to job boards. One of the most lucrative forms of networking is via your alumni network.
Take Colby College, a small liberal arts college in Maine, for example. Amidst the rocky labor market, they implemented a “Pay It Northward” program, a promise to all 500 graduates to use the alumni network to find them jobs. After only ten days, the graduates had received over 500 offers, about half of them for full-time positions.
An Increase In Remote Work
As most companies throughout the nation scrambled to shift to working from home in March, the stigma and uneasiness about lack of control started to melt away. Now, many are extending remote work orders or offering it as a permanent option. Employees and Managers alike are reaping benefits from working from home. A report from USA Today found that 54% of workers are more productive than working in the office. Additionally, as many as 40% of workers would prefer to work remotely full-time in the future.
Lasting Impacts To These Industries
Some industries, such as travel and tourism and traditional retail, will likely feel the effects of this pandemic for years to come. Even as states slowly start to open up, people remain cautious. With unemployment currently hovering around 13%, many have been forced to change their spending habits. This trend will probably last well beyond the lingering threat of the virus as, unfortunately, millions of people have felt the effects of living off of little to no savings.
Economists aren’t optimistic about a fast-approaching recovery. “There’s just been too much damage to come back that quickly. People will self-regulate. Just because your governor says you can go out, doesn’t mean you will do it,” said Ethan Harris, Head of Global Economics Research at Bank of America.
If you need help navigating this unpredictable job market, whether you’re a candidate or a client, we’re here. At Johnson Service Group – we work hard, we work together, we work for you. Contact us today to get started!