COVID-19 and Implications for Supply and Demand Analysis This report and supplementary materials identify in-demand occupations in Tennessee and across Tennessee’s nine Local Workforce Development Areas (LWDAs). The unprecedented impact of the COVID-19 pandemic on social behavior and the workforce is critical to acknowledge in these data and analyses. In March 2020, the United States economy underwent substantial changes as the COVID-19 pandemic moved through the nation. Many employers pivoted to working remotely, businesses closed, and people lost jobs, were laid off, or had their hours reduced. In response, the U.S. Census Bureau and Bureau of Labor Statistics’ Current Population Survey (CPS) added questions to better understand the impact of the COVID-19 pandemic on the labor market, including working from home, employer closures, and difficulty seeking new employment. As of December 2021, 12.2 percent of employed persons teleworked at some point over the previous four weeks. Approximately 2.7 million individuals reported not working or working fewer hours due to their employers’ closing or lost business over the previous four weeks.96, 97 Nationally, as of December 2021, various measures of economic health have continued to improve—including unemployment rates, permanent job losses, and the number of longterm unemployed individuals. These measures show continuing progress in the labor market, though have not rebounded to February 2020 levels.98 As of December 2021, Tennessee’s statewide preliminary unemployment rate was reported at 3.8 percent, returning to pre-pandemic levels (down from a peak of 15.8 percent in April 2020).99 Employment continues to rebound but remains below pre-pandemic levels. Average employment growth is at its highest over the past four quarters, though still trails pre-pandemic employment growth in the first quarter of 2020.100 Industries and occupational groups have been differently impacted by the pandemic—with some industries rebounding from spring 2020 and others continuing to see higher unemployment claims. Goods-producing sectors, like administrative and support and waste management, have recovered to previous levels, while retail trade has experienced a
Bureau of Labor Statistics, Labor Force Statistics from the Current Population Survey, Table 1, Total, 25 years and over (01/24/2022), https://www.bls.gov/cps/effects-of-the-coronavirus-covid-19-pandemic.htm. 97 As a comparison, in June 2020, 33.6 million individuals reported being unable to work or working reduced hours because their employer closed or lost business due to the COVID-19 pandemic. More information can be found here. 98 Bureau of Labor Statistics, Economic News Release, Employment Situation Summary (01/07/2022), https://www.bls.gov/news.release/empsit.nr0.htm# 99 Bureau of Labor Statistics, Local Area Unemployment Statistics, https://www.bls.gov/lau/ 100 Tennessee Department of Labor and Workforce Development, Industry Dashboard. Informed by Bureau of Labor Statistics Quarterly Census of Employment and Wages (QCEW). 96
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