How To Prepare For A Possible Recession By Hiring Smarter

According to economists at Nomura Holdings Inc, the US economy will likely fall into a mild recession by the end of 2022 as the Federal Reserve raises rates to tame prices.  With mounting anxiety about an impending recession in the US, you may be concerned, or at least a little curious, about what this may mean for your business. Pandemic-related factors such as the lower labor force have radically reduced the US labor supply. Therefore, the labor supply is becoming a serious constraint on US economic growth. In this blog, we will discuss the ongoing labor shortage and what firm owners can do to prevent the possible recession from affecting them. As we will see, hiring a virtual assistant can be the smartest way to combat this trend.

Labor Shortage and Recession

The U.S. continues to see major labor shortages in multiple places around the country. In urban and rural areas, we see advertisements for jobs that indicate that many employers are not able to recruit the help they need. Although certain places in the country have seen improvements in the shortage, this is still a major problem in many parts of the nation.

One of the causes of the labor shortage is the federal unemployment money which came about to combat the effects of the COVID shutdown. Many workers, particularly in the service sector, began receiving more money from the State and federal unemployment assistance than from their regular paychecks. In response, many workers opted to remain unemployed and continue receiving unemployment benefits. Now, a new trend has supplemented this problem and contributed to the labor shortage: the so-called “great resignation.”