Despite radically different underlying causes, the COVID-19 pandemic and the social justice movement do have something in common in terms of impact: They’ve laid bare systemic vulnerabilities and catalyzed widespread change. And points of contact between the two are not alone abstract. Black Americans are statistically overrepresented in nine of the 10 lowest-wage, highest-contact jobs that are considered “essential services.” You can see that clearly in places like New York, the epicenter of the virus in the U.S., where 75 percent of front-line workers are people of color.
What will be the impact of all this for employers — at a moment when businesses are reopening and broad-based support for the movement continues to grow? Let’s start with what’s changed in the U.S. labor market, then turn to strategies to help HR leaders navigate this uncharted terrain.
The COVID-19 outbreak significantly reshaped the U.S. labor market, increasing the number of unemployed Americans by more than 14 million between the months of February and May alone. Given those numbers, it’s easy to forget the strength of the job market previous to the crisis. Highly in-demand positions pre-COVID-19 spanned industries. For example:
For accounting and finance professionals, the answer is “surprisingly little,” at least where demand is concerned. In part, that’s because of the CARES Act and the $376 billion in relief it unleashed for workers and (at least, ostensibly) small businesses, spawning demand for experienced accounting and finance professionals in its wake. According to recent data from the Bureau of Labor Statistics, in fact, the U.S. economy actually added some 13,000-plus accounting and bookkeeping services jobs in May, which is encouraging news.
Office and administrative professionals, on the other hand, were hit hard by furloughs and layoffs in the early days of the pandemic. But there are positive signs that demand is creeping back up — although, notably, most of these jobs will be done remotely. To cite just one example, as universities and other educational institutions switch to all-virtual models, they’re discovering the need to hire program coordinators, program assistants and other skilled workers in administrative roles in order to facilitate the change.
Finally, there’s the tech sector, which looks in many ways unchanged, at least from a hiring standpoint, largely because of two factors. First, flexible working arrangements were already the norm in the industry, which streamlined the switch to fully remote work. Second, the tech sector as a whole has been remarkably steady since the onset of the crisis. Down just 2.6 percent, IT is the second-best-performing economic sector in the U.S. in 2020. This helps explain why Facebook, for example, recently announced plans to hire an additional 10,000 employees for its product and engineering teams, a move that would increase the company’s overall headcount by 22 percent.
Addressing immediate concerns about how to return to work safely is, understandably, the first priority for HR leaders right now. And with so many return-to-work models to consider, that means:
With all of this going on in the background, what can HR leaders do to serve as more effective partners to the business? Two thoughts come to mind.
The COVID-19 pandemic has been a tsunami, altering the workplace in dramatic ways. Some of these changes will only be short term, but many others are likely to remain for the foreseeable future. A few such changes to note:
Together, COVID-19 and the social justice movement have exposed deep-seated vulnerabilities, both within our health infrastructure as well as in the fabric of our society at large. Their cumulative effect has been to rapidly accelerate change and transformation. Companies that fail to recognize these trends, react strategically to them and adapt even faster are going to fall behind.
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