Even with the unemployment rate trending down, businesses across Texas struggle to fill positions as the holiday season approaches.
The pandemic caused record-high unemployment levels in Texas, and even over a year later, these levels have not returned to a pre-pandemic normal. According to Texas Workforce Commission, the number of unemployed workers across Texas in September was 705,200, down from 1,116,400 last September but still higher than 471,600 in September of 2019. With unemployment still above the pre-pandemic normal and plenty of job openings available, it raises questions about what is keeping people from working.
“We’re looking at a couple of factors that economists are taking into consideration for this happening. One being the delta variant, so with the increase of that it may be keeping some people from venturing back out to work,” said Amber Warne, director of upskilling and advancement at Workforce Solutions Capital Area. “Another factor is that there is a discrepancy between where openings are and what parts of the economy were hit the hardest.”
While Austin is faring better than other top United States cities with an unemployment rate of 3.5%, employers from multiple industries are looking to fill seasonal positions. Warne’s advice for employers is to work with organizations, like Workforce Solutions, dedicated to connecting employers with talent, grants and support, she said.
In October, Workforce Solutions Capital Area hosted a Seasonal Hiring Virtual Job Fair focused on helping employers looking to fill seasonal positions reach job seekers across Austin, Warne said. Thirty-seven employers participated in the event from various industries, including YMCA of Austin, the University of Texas at Austin Housing and Dining and UPS.
At YMCA of Austin, seasonal hiring is especially important in summer for summer day camp and in fall for afterschool childcare, said Sean Doles, vice president of mission advancement at YMCA of Austin. They recruited staff for summer but quickly had to turn around and recruit more staff for afterschool programs.
“This time around, our shortfall was even greater, and we had to work even harder to recruit and train new team members,” Doles said. “In fact, we are still running advertising campaigns to recruit Youth Development Leaders to ensure that we are meeting our program needs.”
YMCA of Austin is looking to recruit around 300 new staff members this fall, he said. To make YMCA of Austin a more attractive employer to job seekers, the organization is offering $100 sign-on bonuses, referral bonuses and increased base pay to $15 an hour. Additionally, the organization is offering retention bonuses and conducting staff appreciation to get current staff members to stay, he said.
University Housing and Dining has a hiring schedule like YMCA, as they hire based on the academic calendar. They are still hiring for the fall semester, and while the holiday season is not a peak time for the organization, they hire for spring starting in December, said Janette Mercer, associate director of human resources at University Housing and Dining.
UHD hires student, part-time and full-time workers and has done things to appeal to those different groups, Mercer said. Base pay was increased to $13 an hour for students and $15 an hour for part-time and full-time workers to be more competitive. They highlight benefits from day one and put emphasis on work-life balance with time off for holidays, she said. Additionally, UHD has enforced CDC and university coronavirus guidelines to make it easier for people to feel comfortable coming to work.
“Personally, I think there’s been a change in the way people view work… and now we’re seeing it in the labor market,” Mercer said.
A survey by UPS found that the pandemic changed what applicants look for in employment and that seasonal job seekers are looking for opportunities that could have long-term potential. UPS is focused on promoting seasonal work at the company as a stepping stone for the future, said Aaron Times, the human resources manager for UPS in Texas.
“Don’t just look at the opportunity from a seasonal standpoint, but take the opportunity to set your career path,” Times said.
In the Austin and Round Rock area, UPS is looking to hire around 2,500 seasonal workers for various positions, including package handlers, seasonal drivers, personal vehicle drivers and driver helpers, he said. UPS keeps about a third of seasonal workers on to become permanent employees, with benefits such as pay raises, health insurance, pension and tuition reimbursement.
“This isn’t our first rodeo from this standpoint with UPS, so we continue to make adjustments throughout this time of year,” Times said. “That’s why we’re looking forward to this opportunity to be able to share our hiring opportunities with everyone.”
As the labor market continues to change due to the pandemic, Warne says that employers and job seekers should approach seasonal work differently this year. Employers should think about how seasonal employees can transition into full-time roles and job-seekers should recognize the transferable skills that can help build their resume, she said.
“Every employer across industries is looking for those foundational or soft, professional skills, and seasonal work can be a great way to build those up and let other employers know they are fully prepared for the workforce,” Warne said.