Although the unemployment rate soared into the double digits during the Coronavirus pandemic, Metrodata Services found promising results in a recent client survey. Of the companies polled, 46% claimed a need to hire in Q3 while less than 21% anticipated further staffing reductions. So, what does this mean for WNY businesses?
Some Industries Thrived During the Pandemic
The COVID-19 crisis led to a change in buying habits. States issued lockdown orders, so people shopped online. Restaurants closed their dining rooms, so people cooked at home. Movie theaters shut down, so people subscribed to streaming services. Therefore, while many companies struggled to stay afloat, others saw a boom in business. And as a result, these organizations needed to add employees to their rosters to keep up with increased demand. According to USA Today, from early March to mid-May, job postings “rose more than sevenfold for grocery managers and increased 177% for workers who package goods for delivery, 145% for warehouse managers and 89% for customer service sales representatives.”
Some Industries Are Starting to Make a Comeback
As New York and other states allow nonessential businesses to reopen, restaurants, retail stores, and hair salons are beginning to bring back their employees. In addition, since many of these organizations took advantage of federal loans, they must retain or rehire their staff for those loans to be forgiven. Of course, these companies may not begin hiring NEW employees again soon. Nevertheless, they are in the process of getting back on track.
But… A Full Recovery Will Take Time
Mark Zandi, the chief economist at Moody’s Analytics, predicts, “This COVID recession will go down as the shortest and arguably the most severe in history.” However, even in a best-case scenario, economic pain can linger for years. When experts declared the Great Recession officially over in June 2009, the unemployment rate did not return to prerecession levels until 2017. (The Washington Post, June 2020) Plus with Coronavirus, there’s lots of uncertainty. Will there be a second wave? Will businesses need to shut down again? Until a vaccine is widely available and/or the crisis has clearly passed, many organizations will remain conservative with hiring.
When Your WNY Business Is Ready to Hire, Give Metrodata Services a Call!
As WNY’s leading pre-employment screening service, Metrodata Services, Inc. can help your organization make the best possible hiring decisions. We offer everything from criminal record searches to credit checks to drug screening. Learn more about partnering with Metrodata Services today!