There’s not quite a light at the end of the long, dark pandemic tunnel, but data reveals that the economy is slowly and steadily on the road to recovery with a slight improvement in job listings, despite the August numbers remaining far below (18%) the pre-crisis era.
The impact of COVID-19 on the industry pushed all but essential workers out of the office into remote work, which The Glassdoor Economic August Job Market Report showed a leap of 61% of remote jobs from the same period last year.
Those in the technology industry may have suffered the least from coronavirus-imposed job loss. Glassdoor’s data also showed tech jobs up +13% MoM (month-over-month).
While initially born out of necessity, the months of working from home (WFH) proved positive for employees who welcomed the potential flexibility, and the many companies, which indicated a complete return to work will incorporate remote and on-site work assignments. Some companies (Twitter) revealed the return to “the office” will be a fully remote one.
The August report shows a 2% increase in job openings from the July report, as well as an impressive 4.9 million job openings.
Hiring is higher, with 35% of employers increasing job openings, while 33% reduced or paused hiring since July.
Employer job posting behavior on Glassdoor in August shows 35% of employers increased job openings, with 33% of employers decreasing job openings. According to the report, it “represents only a slow expansion in demand for new workers.
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The research examined where hiring is growing and where it continues to have very slow growth.
- Trade and transportation: -6% MoM
- Public services: -1% MoM
- Construction and real estate services : -1% MoM
- Tech: +13% MoM
- Business services: +5% MoM
- Consumer services: +3.9% MoM
- Manufacturing and production: +4% MoM
- Healthcare jobs: +2.8% (only 6.7% short of pre-crisis levels, the best of any industry grouping)
Healthcare providers, such as dentists, which closed or were forced to reduce staff during the pandemic, are now being allowed to open.
US cities seeing more job openings
- Chicago: +9%
- Boston: +8%
- Philadelphia: +4%
- San Jose: +3.4%
- San Francisco: 2.7%
- New York City: 1.4%
US cities with the greatest declines
- Seattle: -6%
- Phoenix: -5%
- Houston: -3%
Don’t rule out NYC or Silicon Valley yet
Remote work has been a booming success and the Glassdoor report notes that some commentators have declared that high-cost areas like New York City and Silicon Valley are dead, but believes that speculation is premature, as the figures demonstrate job openings rising in NYC, San Francisco, and San Jose (the latter two being the area most often described as “Silicon Valley”). While those areas did take a hit, openings are still significantly down year over year, they have more ground to gain back, and the declines are lower than the national average.
Fully remote job openings are still a fraction of the total US job openings, but the remote job openings remain quite high (61%). Despite being only a fraction of total job openings, remote work is one of the few categories where job openings have actually grown year over year.
The Bureau of Labor Statistics (BLS) will release its August job report on Friday, Sept 4, and is expected to show slow but steady job gains.
The Glassdoor data indicates a very slow climb upward for August, but also “some momentum behind the recovery.” The report further stated, “But, being so far below pre-crisis economic activity, there’s a long runway to pick up those furloughed or laid off and get them back into the job market before the economy can take off again.”