The first jobs report for the United States in 2022 indicated steady – if subdued – growth. However, two factors that contributed to the headline unemployment rate are perhaps more significant for the coming economic year: a stagnant labor pool and the influence of omicron.

2021 – A patchwork recovery

Throughout the year, vaccination initiatives have begun in countries around the world, resulting in a gradual improvement in the Covid-19 situation.

While the first quarter of 2021 was dominated by lockdowns, the second quarter witnessed the start of a broad drop in social distancing measures and a reopening of society.

Numerous governments declared the cessation, in part, of financial aid to firms and individuals, so initiating the economic recovery.

So why, nearly a year later, does the situation appear so hopeless?

There are various reasons for this, the most important of which is that the pandemic’s ramifications extend far beyond people losing or changing occupations. Education and training have been severely impacted, as have many workers’ confidence and motivation.

Lockdowns have also caused people to examine how work affects their mental health and wellness, as well as their career choices — a significant component in ‘The Great Resignation‘.

Finally, the pandemic, along with the skills deficit, has resulted in an “unprecedented labor market catastrophe” that will continue to disrupt the labor market for years to come. This will not be resolved unless considerable investments are made in resolving the fundamental cause of the problem.

In 2022, how will the skills deficit be addressed?

Based on our experience here in StaffCX, most of the United States is on the verge of a digital skills deficit, with less than half of businesses believing that young people are graduating from full-time education with appropriate business and digital capabilities.

According to ManpowerGroup’s Talent Shortage Survey 2021, the most in-demand roles are in operations and logistics, manufacturing and production, sales and marketing, and information technology and data.

However, what are the critical talents required to obtain those positions?

Unsurprisingly, employers prioritize the following characteristics in addition to technical expertise: dependability, resilience, stress tolerance, and flexibility, as well as initiative-taking, leadership and social impact, reasoning, and problem-solving.

All of these are non-cognitive talents that are necessary for obtaining and maintaining employment.

While digital skills are required across all industries and occupations, the epidemic taught us that while there is a shortage of digital skills, there is no talent shortage in the United States.

Talented young individuals who live in rural locations or in metropolitan areas with poor socioeconomic status are simply excluded from mainstream recruitment programs.

Numerous unemployed groups are unable to meet workplace needs as a result of information access obstacles and a lack of investment in training and upskilling.

For example, those from lower socioeconomic backgrounds have considerable disadvantages as a result of a lack of digital involvement and technological skills. According to reports, the pandemic has harmed the job prospects of the most vulnerable young people even more.

Is Omicron a cause for alarm?

With the recent advent of Omicron, it is evident that we are not yet at the end of our vocabulary. The World Health Organization (WHO) has also cautioned that the new Covid variant could have catastrophic worldwide effects, raising the question of whether Omicron will impede company recruitment even further.

It will undoubtedly have an effect – as we saw with both the original outbreak and Delta, the initial response was to dismiss and furlough workers – but the reality is that regardless of any new variety, the skills gap remains one of the most critical concerns facing American governments.

Now is the time to spend aggressively in worker skill development, upskilling, and reskilling. We need to look ‘beyond the problem’ and recognize that, while we will adapt to this newest new version, we urgently need to close the skills gap for future generations.

Schemes for inclusive recruiting

Thus, the question is – how do we increase the number of unemployed workers in the current climate? To begin, by reaching out to diverse communities where talent exists. By cultivating a talent pipeline rather than stealing talent between businesses.

There are numerous ways to accomplish this, including leveraging technology and developing virtual apprenticeships for unemployed individuals living outside of urban areas, engaging prospective employees through coaching and mentoring, and hiring diversity officers in human resource departments to diversify recruiting channels.

Simultaneously, businesses of all sizes in the United States must collaborate more effectively with government agencies and civil society organizations to implement catch-up programs, training and reskilling programs, and job guarantees that will better prepare current and future employees for the world of work.

With corporates still reeling from the epidemic and assessing the possible impact of the Omicron variety, employee retention and talent procurement are critical.

Certain jobs will be eliminated, while others will be altered, but new jobs will also be created.

Focusing on inclusive recruitment strategies for new and modified occupations will position us to meet future challenges, both during and after Covid.

At StaffCX, we leverage over 30 years of experience in building, managing, and growing contact centers with the latest innovation in talent recruitment, assessment, and onboarding that attracts and retains top talents.

Partner with us and together we can build a better and safer work environment today👉 https://bit.ly/3oQTUoe