In a competitive labor market, companies turn to benefit packages to recruit hourly workers

At 4.9 percent, Pittsburgh’s December 2017 unemployment rate is approaching a level the Federal Reserve considers nearing “full employment.” This follows a trend of low unemployment rates at the state (4.7 percent) and national levels (4.1 percent). A tightening labor market has generated more competition among businesses for workers, with some of the country’s biggest employers offering more attractive benefits packages, according to a recent New York Times article. While these benefit packages typically have been used to attract salaried workers, employers are using them to recruit hourly workers, too.

Research from Pew suggests these are measures most Americans support. Eighty-five percent of Americans surveyed said workers should receive paid leave for their own medical reasons and 82 percent said mothers should receive paid leave following the birth or adoption of their child. Those surveyed also said access to paid leave for medical or family reasons would have a positive impact on families (94 percent) and the economy (65 percent).

However, access to employee benefits varies greatly across industries, union vs. non-union jobs, full-time vs. part-time positions, and types of benefits. Only 13 percent of private-sector employees have access to paid family leave, ranging from 37 percent of employees in Finance and Insurance to just 5 percent of workers in Construction. Larger proportions of private-sector workers have access to other benefits, including retirement (66 percent), medical care (67 percent) and life insurance (55 percent). However, access to these benefits can vary significantly. For example, 82 percent of workers in Management and Professional occupations have access to retirement benefits, compared to just 42 percent of workers in Service Occupations.

In the Pittsburgh metro area, employers posted nearly 12,000 jobs online in December 2017. Often the challenge for employers to fill positions is attributed to a skills gap between job seekers and hiring businesses. However, as the Pittsburgh region nears the threshold of full employment, a greater need may exist for employers to further incentivize their job offerings to compete for skilled and educated candidates. Further insights from Partner4Work’s focus groups of Pittsburgh’s out-of-work population suggests job seekers take into account additional criteria beyond wages and benefits too, including commutes, work hours, and stress-levels of positions, when considering to accept or remain in a job. Understanding these and other criteria job seekers consider when choosing a job is important when trying to make those connections between employers and qualified talent.

Author: Dillon Moore, MPA, Partner4Work’s director of policy