Easing into the post-pandemic environment has not been so easy on the jobs front -- the labor force has withered in Arkansas and across the U.S.
Jobs are plentiful across Arkansas and the nation, so that's not the issue. Complications from covid appear to continue to hinder the rebuilding of a full labor pool to fill those jobs.
During covid's peak, workers were thrown off the job primarily out of health concerns. Businesses reopened, and a great majority are either encouraging or mandating that employees return to the office to keep their jobs. Many potential workers, however, remain on the sidelines.
Businesses raised wages, offered incentive pay and bonuses -- all in an effort to fill open jobs. Many workers still stayed away, creating huge gaps in the available labor pool.
Though Arkansas' labor force remains below pre-pandemic levels, participation has shown a gradual increase throughout this year. Nevertheless, state officials estimate upwards of 100,000 jobs remain unfilled.
Now, a new study from the National Bureau of Economic Research reveals that the U.S. labor force, still recovering from the pandemic, remains down by 500,000 workers who became ill with a covid-related sicknesses that kept them out of work. That will likely persist if the virus continues to sideline workers at current rates. Moreover, the study finds that the per-year value of the lost labor supply is about $62 billion -- roughly half of estimated losses caused by cancer or diabetes.
Economists Gopi Shah Goda of Stanford University and Evan J. Soltas, at the Massachusetts Institute of Technology, said in the study that "Covid-19 illnesses persistently reduce labor supply."
They noted "workers with weeklong covid-19 work absences are 7 percentage points less likely to be in the workforce one year later compared to otherwise similar workers who do not miss a week of work for health reasons."
That is a 0.2 percentage-point decrease in the labor-force participation rate, which reflects the number of adults holding or seeking jobs.
Researchers pointed out that the estimate is conservative and the number could be a decrease of 750,000, or about a 0.3-point decline.
The study tracked more than 300,000 workers over 14 months -- ending in June this year.
SPARK IN CENTRAL ARKANSAS
Seven small businesses in Central Arkansas will participate in the 5th Spark! accelerator program, a 10-week initiative that helps entrepreneurs scale their companies through a sales, marketing and finance curriculum.
This session's cohort participants provide an array of services, including mental health care, travel consulting, software for builders and contractors. The program, sponsored by the Little Rock Venture Center and the Little Rock Regional Chamber of Commerce, began last week and ends Dec. 7.
Pamela Reed, managing director of community programs for the Venture Center, says working with this new 2022 cohort is an opportunity to support small business ventures in central Arkansas.
"They've put in the hard work to get them where they are today, and we're thrilled to leverage our network of partners and supporters to provide these entrepreneurs with the resources needed to grow and succeed," Reed said.
Spark! supports businesses that have been operating longer than two years and are seeking technical support to thrive.
Companies participating in the fall session are Sprinkles and Spice, Candy Butta, Builder Bid, SpeakUPZee, Kenitra's Travel, The Vision Project and Cahill Exterior Design.
"We continue to be impressed by local small business leaders who are committed to learning and growing, and this year's cohort is no different," said Jay Chesshir, the chamber's president and chief executive officer.
More information about Spark! is available at venturecenter.co/spark.
GOVERNOR'S AWARDS
The Governor's Quality Awards were handed out recently to seven businesses and organizations: a higher education institution, an information technology company, an architect firm, a makeup manufacturer, a dental insurance provider and two timber mills.
The 27th annual celebration was held at the Governor's Mansion to recognize Arkansas organizations that encourage continuous quality improvement and performance excellence.
The highest-level award for performance excellence went to Black River Technical College of Pocahontas for demonstrating effective processes and delivering favorable results.
Mainstream Technologies Inc. and Cromwell Architects Engineers, both of Little Rock, also were recognized for high-level achievements. Four other organization were recognized at the ceremony: Delta Dental of Arkansas in Sherwood; L'Oreal USA of North Little Rock; PotlatchDeltic Corp. of Waldo; and PotlatchDeltic Corp. of Warren.
The Governor's Quality Award program is coordinated by the Arkansas Institute for Performance Excellence, a nonprofit organization affiliated with the Arkansas State Chamber of Commerce.
DISASTER LOANS AVAILABLE
Small nonfarm businesses in 75 Arkansas counties are now eligible to apply for low interest federal disaster loans from the U.S. Small Business Administration.
The loans offset economic losses because of reduced revenues caused by excessive heat and drought that began May 30.
Arkansas counties are: Arkansas, Benton, Boone, Carroll, Chicot, Clay, Cleburne, Cleveland, Columbia, Conway, Craighead, Crawford, Crittenden, Cross, Dallas, Desha, Faulkner, Franklin, Fulton, Garland, Grant, Hot Spring, Howard, Independence, Izard, Jackson, Jefferson, Johnson, Lafayette, Lawrence, Logan, Lonoke, Madison, Miller, Newton, Ouachita, Perry, Pike, Poinsett, Pope, Prairie, Pulaski, Randolph, Saint Francis, Saline, Scott, Sebastian, Sharp, Stone, Union, Washington, White, Woodruff and Yell.
"SBA eligibility covers both the economic impacts on businesses dependent on farmers and ranchers that have suffered agricultural production losses caused by the disaster and businesses directly impacted by the disaster," said agency Director Tanya N. Garfield.
Loans of up to $2 million are available. More information can be found at disasterloanassistance.sba.gov.
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