LITTLE ROCK (KATV) — According to the U.S. Chamber of Commerce, Arkansas has one of the most severe workforce shortages in the country.
Michael Pakko, the chief economist at the Arkansas Economic Development Institute at the University of Arkansas at Little Rock, said unemployment in Arkansas is at a historic all-time low of 3.1 percent and labor force participation is 58 percent.
Pakko noted there are currently 90,000 jobs in the state and even if the unemployment rate was zero, there would still be 50,000 jobs left.
“It’s almost like an insurance policy that Arkansas has that…we have all these job openings,” Pakko said. “Some of them might not persist, but it’ll protect us from a really serious downturn in labor market conditions should the economy weaken from where we are right now.”
Pakko said if the baby boomer generation remained in the workforce, stay-at-home parents returned to work, and more people moved into the state, it could help alleviate some of the worker shortage.
Marlena Gutierrez at Hughes Staffing Agency referenced that 29 million baby boomers retired in 2020 and said it created an unexpected shift in the labor market.
“[Companies are] backfilling these positions, and they’re expecting [new] employees to come in with those skills, but not wanting to train [them],” Gutierrez said. “You’re not going to be able to find someone for minimum wage or a little bit more than minimum wage with those skills right now.”
Gutierrez said employers should consider meeting young job seekers where they are rather than trying methods from the past.
“The old ways don’t work anymore,” Gutierrez said. “Social media platforms are how people are finding jobs. Job fairs and things like that just aren’t working. You have to think outside the box nowadays.”
Patricia Mendez at Hughes Staffing Agency said she’d found job seekers are not only looking for higher pay, they also want better value.
“If the companies offer medical benefits, insurance, vacation and all the plans, [job seekers] would be happy to accept a good job with good offers,” Mendez said.
Mendez mentioned employers should consider investing in training less experienced applicants who could do well in the long run and offer more opportunities to those who might have a record.
