Covid-19 and Employment Outcomes
If someone had predicted in 2019 there would be a global pandemic that would usher in a world-wide recession, most would not have taken it seriously. Fast-forwarding to the present, and the world is reeling from the impact of a novel virus–Covid-19–that has derailed global economies and brought communities to a standstill. While many communities like those here in Oregon are entering phased reopening, we collectively grapple with establishing normalcy during the pandemic.
Many of us have searched online (and offline) for insight from medical experts as well as business and political leaders for perspective as to when we can expect the economy to recover. While there is no magic eight ball that predicts the future, there are subject matter experts, such as Ramona Mathany, who have a point of view worth considering. These experts have weathered past economic storms and can lend valuable insight.
Ramona has been a leader in alternative employment (PEO) and the staffing industry for over 25 years. She founded All Star Labor and Staffing in 2009 during one of the worst recessions in the history of the United States. The following interview is a reflection of her assessments about the pandemic.
You founded a successful PEO company (AmericanAdmin) 25 years ago. What made you decide to start a staffing agency?
I started a staffing company because we were in the middle of the recession of 2010, and I wanted to find people jobs. My vision was to launch a company that would enhance the lives of its employees. I tried to help remove barriers to employment during a time that was very difficult for vulnerable populations.
If your PEO company provides staffing for companies as well, are your companies competing for clients? What is the advantage of having both a PEO and a staffing agency?
No, the companies never compete. Our PEO agency provides permanent employees to an organization, and our staffing agency is for companies that need a temporary employee, direct hire, or a temp-to-hire. All Star Labor and Staffing typically provides a temporary remedy rather than a permanent solution.
You’ve weathered some significant economic crises over the past several years, including the 2008 market crash. Are there similarities between the recession of 2008 and the 2020 pandemic?
There is something very similar about the recession of 2008 – 2010 and the COVID-19 crisis. And there’s also a significant difference that I have seen. The similarity is it all came on very fast and felt like it was out of nowhere. The difference is that many people were allowed to keep employment from home or be designated essential workers, such as construction on the job. Because COVID-19 did not adversely affect the construction industry, I believe we will have a fast bounce back. And the pandemic certainly has not negatively affected our PEO because construction was allowed to continue as an essential service.
Can you give us an idea of the challenges prospective clients are sharing with you regarding recruiting and retaining staff during the pandemic?
During the pandemic, the recruiting industry has changed dramatically because of the massive increase in unemployment and the stimulus package checks that are reaching people in their homes. People are making more money staying home on unemployment rather than working at their previous jobs. That leaves employees reluctant to return to work. Also, companies are still cautious about hiring new employees and having to lay them off if there is a resurgence of the virus in the fall.
What are some of the lasting impacts (positive and negative) you believe the pandemic will have on the staffing industry?
Companies now have to figure out how to work with fewer employees. That is what is coming out of the pandemic. Which means there will be fewer jobs for Oregonians if this continues. Additionally, employees have to work at a higher capacity because there are fewer people on the payroll.
As the economy begins to recover, the positive impact is that the job market will eventually become an employers’ market again, and there will be a higher demand for jobs and a larger pool of candidates from which to choose.
