Earlier this week, the WSJ reported some strange happenings in the job market.
Here’s what we already know:
-20 million jobs were lost due to the pandemic in March/April of 2020
-13.4 million people have gone back to work to fill the jobs previously vacated
-the remaining 6.6 million individuals who used to be working have not returned to their jobs
-the U.S. economy is producing (GDP) at its pre-pandemic level in spite of having these workers on the sideline
Here is the strange part:
-there are currently 10.1 million job openings—the highest level of openings in more than 20 years
-there are 8.1 million people who are reporting themselves as unemployed
(the definition of “unemployed” is someone who wants to work, but hasn’t been able to successfully land a job)
What gives?
There seems to be a complex mismatch between what employers have to offer (positions, locations, working arrangements, etc.) and what unemployed workers are willing to accept.
Part of the reluctance to return to a previous job/career is related to many workers getting a taste of autonomy and being released from traditional work arrangements (i.e. escaping from commuting and going to an office every day).
The great employment churn will continue for several more months and may stretch into next year.
While this churn may feel unsettling, it’s a great opportunity for the real estate industry.
Many talented individuals have been dislodged from their traditional mindsets and see working as an agent in a new light.
It’s important to maintain high standards during this time, but some of the new agents you hire during this post-pandemic period will be your next top performers. And some of them will be super-performers.
It happened during the last downturn (there was lots of churn then too), and it’s happening again.