6
August 7, 2020
Proprietary
Unemployment Does not Currently Correlate to Wages
While low unemployment was creating wage pressure pre-Covid due to scarcity of skills, current surge in
unemployment coupled with legislative aid minimizes any wage reversal that was anticipated.
Outside of industries most impacted* by Covid, current unemployment numbers are
fueled predominantly by low-wage jobs
IT Skills, less than 1% unemployment prior to pandemic, have continued to be in
demand and have seen the greatest pressure for wage increases
Recruitment of candidates already employed or those working remotely, often requires
wage increase to recruit successfully
Childcare Gap is ongoing challenge for over 1/3
rd
of workforce, requiring shift flexibility,
increased income, or other incentives
Rather than wages declining over time as pandemic recedes, future compensation is
likely to continue to account for job responsibilities such as onsite work or travel
requirements
*Travel, Leisure, Energy, and Hospitality were
impacted more than all other industries combined
