Joining the studies that suggest that the U.S. economy could be nearing the bottom of its downturn, the COVID-19 Business Index reported on June 4 that more employers are hiring salaried workers than laying off or furloughing them. The gains are long-term, not short-term.
The Index, produced by SHRM (Society for Human Resource Management) and Oxford Economics, found that despite these positive developments job creation is still not occurring at the rate required to recover the more than 40 million jobs lost in the U.S. since the outbreak of COVID-19.
“We’re starting to see more employers seeking new talent and show they are ready to get back to work,” said SHRM CEO, Johnny C. Taylor, Jr. “That’s heartening to hear: The recovery is coming. But the truth is it’s too soon to say what shape it will take—that will take more time and research.”
Taylor added: “I can say this, though, to the workers who have been laid off or furloughed: Start skilling up, now. Yes, some jobs will come back. But, frankly, some are gone forever, and many of those that do return are going to be different.”
"Despite a continued increase in newly filed unemployment claims, state re-openings may be beginning to benefit some portions of the economy,” said Dan Levine, head of Oxford Economics’ location strategies practice.
Key findings of the report include:
- More employers (15%) are hiring salaried workers than laying off or furloughing (6%) them;
- However, more than twice as many salaried employees are losing jobs than being hired;
- Similarly, more employers (13%) are increasing hours for hourly workers than reducing hours (8%) for them;
- However, the overall number of hourly workers working fewer hours continues to outpace those receiving more hours;
- Although outweighed by losses, most jobs gained are long-term, not short-term, roles, as 95% of employers say salary hires are long-term gains while 70% say the same of hourly hires.
Note: SHRM offers a variety of information on issues related to COVID.
