Understanding Factors Contributing to a Labor Force Downturn

By Teri Drew

In a continuing effort to attract, retain and identify workers for Yavapai County, the Workforce Development Board wanted to share a few updates. As we look back to the record historical benefits received by Americans during the pandemic economic shutdown and beyond, we recall that workers were offered $21 per hour for unemployment, rental assistance, house payment protection, daycare, TANF benefits, etc. While those services and programs were not new, some of the requirements were changed.

Namely, the work requirement was lifted because of the shutdown of many industries during the pandemic. For example, individuals who are receiving unemployment benefits are generally required to actively search for work and meet certain job search requirements to remain eligible for benefits. Claimants must register with the Arizona Department of Economic Security’s (DES) Arizona Job Connection website or visit a local DES Employment Service office to create a job seeker account. Claimants are required to seek suitable employment and report their job search activities on a weekly basis to maintain benefits. The specific number of job search activities may vary, but complying with the reporting requirements is essential.

Temporary Assistance for Needy Families (TANF) is a federal assistance program that provides temporary financial assistance to low-income families with children. Work search requirements for TANF recipients in Arizona vary but recipients are generally required to participate in employment, job search, job training, education or community service to continue eligibility for benefits.

I am pleased to inform you that the Senate and House recently passed a bill earlier this month reinstating the work search requirement for recipients receiving assistance. This legislative action acknowledges the importance of fostering self-sufficiency and reintegration into the workforce.

Since these work search requirements have been reinstated, we have witnessed a significant increase in the number of individuals actively seeking employment, compared to the previous few years at our NACOG and DES work centers. Currently, the Yavapai

County labor force is averaging 109,373 individuals, which is a rate of 48.8% labor force participation; 81.4% of these individuals are between 35 and 54 years of age. Employment projections continue to increase by 1.9% for the next several years.

The labor force participation can be affected by a range of factors, such as changes in the economy, technological advancements, job availability, education and skills, retirement rates, and personal circumstances. For example, during periods of economic turndown or recession, some workers may experience job loss or choose to leave the workforce because of difficulties in finding employment. Additionally, changes in industries, automation or shifts in market demands can also impact the distribution of the workforce. Arizona has experienced varying employee retention rates across different industries. Employee retention refers to the ability of employers to retain their workforce over a certain period of time. Several factors can influence employee retention rates such as economic conditions, industry-specific dynamics, job satisfaction, compensation and benefits, work-life balance, career growth