Labor Market Springs Ahead
The labor market has a little spring in its step. After a slow start to the year, the economy added 916,000 jobs in March and the unemployment rate dropped to 6 percent from 6.2 percent for the right reasons, more people entered the labor force and found jobs.
The acceleration in vaccinations, along with improvement in weather and the lifting of local restrictions created a surge hiring for restaurants, bars and accommodations. There were also brisk gains for the construction, manufacturing, and health care sectors. The good news is expected to continue next month, as weekly claims have been trending down. The four-week moving average fell to 719,000, its lowest point since COVID-19 hit in March 2020.
Of course, we are not yet back at pre-pandemic levels of employment. There are still 8.4 million fewer jobs than there were in February 2020. The sharp tip of the job losses has been in leisure and hospitality, which has seen 3.1 million jobs vanish since the pandemic began. Additionally, the labor force is 2.2 million smaller than it was 12 months ago, as many would-be workers remain on the sidelines.
Still, as the labor market heals, many are trying to assess what comes next. For some, the pandemic reframed their views on their current trajectory within their current careers. For others, this scary, surreal and anxiety-ridden period of time has prompted a reflection on what they really want to do next. Whether you are sidelined from the labor force and are considering getting back in, or are lucky enough to have a job, but need a change, consider these steps:
1. Conduct Research: While the labor market is recovering, there are some industries and specific roles that are faring far better than others. Tech, healthcare, online learning, e-commerce, and digital entertainment have revved up hiring, and may have opened up opportunities in areas that don’t necessarily rely on technical expertise. One tech executive told me that her number one priority is filling open sales team roles, not engineering ones.
2. Assess Your Strengths: While it is easy to focus on technical skills or educational attainments, many employers are also focusing on the harder to quantify “soft skills,” like the ability to communicate, empathize, work with others or solve problems. This is also a good time to figure out where you need to improve and whether you need to acquire new skills. While you are at it, identify what moves you. What jobs/tasks have you enjoyed doing? Most of us can find one or two things that we liked doing, even if the overall job wasn’t a great fit.
3. Review and Update Your Resume and Cover Letter: Make sure that these annoying, but necessary documents reflect who you are today. If you are thinking about more than one industry, consider creating different versions of the resume for each. You should also update your online presence, including cleaning up your social profiles so they are professional and networking-worthy. This may include changing settings, so they are private.
4. Figure Out Why You’re Jumping Ship: If you are considering a departure, what is motivating you to make the move? Are you seeking more money? While a pay raise can be great, would it require longer hours, days or a loss of benefits? Would you lose a precious pension or vacation time? Have you realized that you want to feel more connected to the mission of an organization than the job you perform in that organization? Are you burned out from the pandemic or from your job itself? This has been a grueling year for so many, which may cause some people to conflate the general period of time with the jobs they hold.
5. Network: You may cringe when you see that word, but all you really need to do is to talk to people that you know and also with those with whom you share a connection. One friend told me that she has no idea where to start her search, because she has been doing the same job for so long. I recommended that she begin talking to those folks whose jobs have always seemed interesting to her. Send a quick note and ask to chat with them, either by phone or maybe via FaceTime/Zoom. The best news about the lockdown is that we have all learned how to communicate more effectively through a screen. If you’re still rusty, practice with friends or family and try to be clear and concise.
6. Consider a Side Hustle: Whether out of necessity or desire, the pandemic has spurred Americans to become more entrepreneurial. There have been more than 4.4 million new businesses started since the pandemic began, a more than 40 percent increase from the prior year. When people ask about starting their own businesses, I advise them to start with a side hustle. Doing so is a good way to test a concept and see if it gains traction, while enjoying the stability of a full-time job and benefits.
Chris Guillebeau, author of Side Hustle: From Idea to Income in 27 Days told me that “one of the greatest things about having a side hustle is that it gives you options. And it gives you more security for yourself. So, if you love your job, that's great. You keep going to your job. But if you're trying to make a change, a side hustle can give you that security, that confidence to take a step in that direction.”
If you do decide to go it alone, don’t forget that you will need to investigate health insurance, as well as life and disability insurance, as well as retirement plan options.