3 minute read
Don’t cover an extension cord
COVID-19 … and after
By Cleve Poole
Job opportunity
For folks who have read my past columns, you will remember that they focus mostly on two things: economic develop ment and workforce development.
When I wrote my last column several months ago, the economy was great. At the beginning of 2020, the unemployment rate in Pioneer Electric’s service territory aver aged around 4.5%. That’s a bit higher than other areas of the state but historically low for South Central Alabama and the Black Belt areas. Industries were searching in nontraditional areas for labor, as pretty much everyone who wanted a job had a job. Entry-level jobs were plentiful and opportunities to move up abundant for anyone who showed work ethic and desire.
Often, companies were looking to expand and relocate. The problem they had where they were was a shortage of labor — and the same was true for every where they looked to expand!
In the past month, a decade of job growth was wiped out as a result of the COVID-19 shutdown. According to the Federal Reserve, 40% of the workers making less than $40,000 a year find themselves out of work. The unemploy ment rates are moving into territories rivaling the Great Depression, infection rates of the virus are still climbing, and the national debt is mounting as Washington makes attempts to ease the burden of the economic shutdown.
Here is what I think will happen as we reopen our economy:
1. Industries will rethink their supply chains.
The worldwide market shut down due to the virus, and each country, even each state within the U.S., has different rules about when and how businesses can reopen. When a local company uses a “widget” that is only produced in China, and that particular province in China is shut down, the local business can’t complete the process needing that widget. I think you’ll see industries rethink their dependence on suppliers so far away and look to find suppliers closer — maybe in the same state.
2. New opportunities will arise as a result of the COVID-19 pandemic.
Entrepreneurs always see opportunities when others see gloom. One possibility is retooling existing industries to make different products that supply local industry needs. Other opportunities lie in the production of Personal Protective Equipment. This virus will continue to spread for some time, and more PPE will be needed, as will sanitization products. Finally, as the public continues to embrace social distancing, new ways of shopping, eating out and attending events will bring about opportunities for new products and processes.
3. Workers will get more training.
A lot of folks were laid off, furloughed or worse as a result of the pandemic. Many of these people, fearing a similar occurrence in the not-too-distant future, will want to be “less dispensable” the next time a pandemic occurs. I think many of these workers will take advantage of after-work training for skills that will make them more valuable to their employers or get them better jobs.
4. Basic work skills will become more important.
With high unemployment rates, businesses and industries will have the pick of the crop when they look to hire additional workers. Basic skills like being at work on time every day, working all day, working well with co-workers, putting up cellphones, dressing appropriately and passing drug tests — all of which I call “work ethic” — will be minimum requirements for a job. Employers will be less likely to be lenient, and they will certainly be pickier than when it was hard to find workers three months ago.
Of course, predictions are like elbows — everybody has them. So, we’ll see what happens. In any event, times are sure to get better. n
