How will the pandemic impact the job market?

TAMPA, Fla. - When this is all over, how will things be? That's a question to ask about so many things, post-pandemic. 

In terms of jobs and employment, we are starting to get a better idea. In January, the Bureau of Labor reported the unemployment rate fell to 6.3%, with the overall unemployed number decreasing to 10.1 million. 

Even though this is a decrease, this is still well above the pre-pandemic level, where the unemployment rate was at 3.5% with 5.7 million Americans unemployed.  Even though unemployment numbers are approaching their pre-pandemic figures, there's a lot of concern on what the U.S. job market is going to look like when this is all said and done.

According to a new report by the McKinsey Global Institute, it estimates that one in 10 U.S. workers may have to switch jobs by 2030, due to the impact of COVID-19. Let's take a look at what the study means and how that may impact you. 

Who is likely to be impacted the most?

McKinsey's research finds that U.S. workers that will be the most impacted are those without a college degree, minorities, women, and young people. Those without a college degree are 1.3 times more likely to make a transition that they want to make ends meet. 

Black and Hispanic workers will most likely also be impacted, with the research suggesting that, they are 1.1 times more likely to have to make a transition.

The biggest factors on this transition are because of the increase in hybrid remote work, the growth in e-commerce, the delivery economy and businesses increasing their adoption of automation and artificial intelligence. 

With so many businesses having to adapt their traditional workflows to more video conferencing and working remote, it's estimated that 20% to 25% of workers could work from home for three to five days a week, which is a four to five times increase from where we saw, before the pandemic.
    
This has also resulted in a decline in the demand for restaurants. Think of the last time that you actually went out to eat and sat in a restaurant? A decline in retail shopping in downtown areas, this has also impacted public transportation and how many miles commuters are on the roadways.

This is also played a factor in why more people are looking for more remote jobs or working online.

Biggest changes in the post-pandemic economy 

According to a Gallup poll taken in April 2020, the percentage of workers reporting that their employer is offering the ability to work from home, increased to 57%.

If you're looking for a job that allows you to work remote, you can check out my blog, where I list some of the best online jobs, with the highest salaries. 

In the survey, McKinsey reported that 278 executives, plan on a reduction of office space by 30%. This is one of the big factors that also affects public transportation. With more people working remote, we've also seen an exodus from people moving from big cities to smaller ones.

The state of California reported that over 135,000 people left the state and one of the recipients of this migration is Florida.

According to the U.S. Census Bureau, Florida gained an estimated 241,256 residents between July 2019 to July 2020. Only the state of Texas saw a larger growth. 

Tampa Bay has been one of the largest benefactors of the increased population. According to WalletHub, Tampa ranks 9th, in terms of largest city growth.

Biggest predictions from the survey

If you feel that you are going to be impacted, you might be wondering what you can do now? 

McKinsey predicts that the demand for workers in healthcare and STEM -- Science, Technology, Engineering and Mathematics -- could grow much greater than we saw before the pandemic. The population will continue to age and incomes will rise, so there'll always be a need to create and maintain new technologies.

If you think you may be impacted and are looking for financial relief, you can check out a list of federal relief program extensions for 2021. And with remote learning on the rise, in time, to improve your education, there are several online colleges where you can get a degree from anywhere. If this is something that you are considering, check out our list of the best online colleges. 

Now is not the time to be reactive. So, if you are more likely to be impacted, start implementing steps today, so that you're not caught in a situation that puts you in an economic bind.

Jeff Rose is a combat veteran, certified financial planner and founder of GoodFinancialCents.com