Job woes hitting Southeast Arkansas

The world has changed since 2020. While covid-19 remains, it’s weakened but not defeated, and the stock market’s track is more like a wild roller coaster ride.

The mass shutdowns and layoffs of early 2020 morphed into demand and accelerated job creation and severe employee shortages.

Southeast Arkansas has not escaped, said one local employment expert.

A few days ago, the feds announced that 390,000 new jobs were created in May with unemployment remaining at about 3.6%.

In Arkansas, according to the U.S. Bureau of Labor Statistics, the unemployment rate was about 3.5% in December 2019 before rising to about 10% in April 2020.

This month, it reached a new, all-time record-breaking low rate of 3.2%.

From January 2021 until this January, Arkansas added 24,000 new jobs, putting an additional strain on low unemployment numbers, meaning employers may have to raise wages or get creative to attract the remaining unemployed workers or steal those already employed.

According to the Arkansas Division of Workforce Services, this past April, about 4,500 workers were added to the workforce.

Actually, a little more than 5,600 people took new jobs, while a little more than 1,100 employees quit old ones.

It’s putting a pinch on employers who have more jobs than they can fill, said John Lawson, owner of Express Employment Professionals in Pine Bluff.

Just Google job openings and dozens and dozens of jobs pop up.

Lawson said many larger businesses and chains have increased entry wages to $20 an hour and are offering a sign-on bonus.

“This isn’t only a Jefferson County problem; it’s being felt all across Arkansas and the entire country,” he said.

Expand the Google job

search to the entire state and the job openings listed number in the hundreds.

Lawson, who has 15 years of industry-related experience, said they used to fill 30-plus jobs a day but that number has dwindled.

“We’re now struggling to fill two or three jobs. We’re constantly recruiting,” Lawson said.

He has employers lined up, but all too often a potential employee turns down the job offered, or maybe doesn’t report to work on the first day or quits the job after only working a few days.

This problem is nothing he hasn’t seen in the past, and in response, he talked with others at employment agencies, employers and now politicians about their current situation.

He said no one really has an answer to the problem, but it’s critical to the country’s economic welfare.

“We need a stable workforce,” Lawson said.

THE COVID EFFECT

While many point to government subsidies such as the enhanced unemployment benefit, child tax credits and the three economic impact payments (or stimulus checks) as impacting employment, Lawson said those programs have ended and effects from them should no longer be felt.

Perhaps some people have learned they can live on less, saved their government stimulus payments, aren’t ready to return to the workplace because of covid, are retiring or can’t find child care, but Lawson said he thinks “it’s a much more complicated problem.”

With the end of the covid-19 shutdown, people are out in full force, spending more money whether eating in restaurants, ordering online or on travel, and, he said, the employers he works with are reporting great demand.

Lawson is searching for answers.

“There’s not one simple explanation, and we’re in uncharted territory as we move forward,” he said.

HELP WANTED

Joe Spadoni, the White Hall Chamber of Commerce president, agreed with Lawson’s assessment, saying employers throughout the city of a little more than 5,000 already need more employees, and the business boom at White Hall will soon compound the problem.

“There’s more and more demand on products, but not enough employees to fill the need,” Lawson said.

In Arkansas, transportation is the fastest-growing sector of the state’s economy, with nearly 13,000 jobs created over the last year, he said.

It’s possible teenagers aren’t working at the same high rates as in previous generations, he said.

Less visible to most is the dwindling number of immigrants or refugees allowed into the country, Lawson said.

The Trump administration cut the number of immigrants allowed into the U.S. in 2020, granting only about 18,000 into the country — the lowest rate since 1980 when the program began.

They often fill low-skill, low-wage fast food or farm jobs.

“Its impact has been felt,” Lawson said.

But jobs requiring industry-related skills or requiring college degrees are also advertising for employees, such as RMC of America at White Hall.

Bea Cheesman, RMC chief executive officer, said the 81-year-old medical collection company needs employees.

“It’s been difficult the last two years, but especially now because everyone is looking for employees,” Cheesman said.

The Pine Bluff School District posted 20 job openings in May and six openings already this month.

The Pine Bluff mayor’s office reports city job vacancies, too.

“Recruitment is a challenge throughout the country,” said William Fells, special projects coordinator for Pine Bluff Mayor Shirley Washington’s office. “The city has not been immune. There are unfilled vacancies in various departments, so we are working to be proactive in hiring employees.”

Like North Little Rock, Fells said, the city recently hosted a job fair that included not only city departments but also local businesses and other organizations.

“We identified several good candidates,” Fells said.

Outside of the fair, individual city departments such as the police and fire departments have been recruiting, too.

“We have seen progress with several new employees coming on board. But we know that we will have to keep up this effort,” Fells said.

“There’s not one simple explanation, and we’re in uncharted territory as we move forward.”

— John Lawson, owner of Express Employment Professionals