Here’s the job market obviously means a great deal for the
means a great deal for the
health of Southeast Texas.
The challenge and curiosity is
what the post-pandemic
environment means for us now.
And in the future. In December,
the Greater Houston Partnership forecast at Metropolitan
forecast at Metropolitan
Houston would create 75,000
jobs this year. The 8th time
their forecast is reached that
level and they say each time
it’s coincided with rising oil
prices. With me this morning, the talk about what is actually
the talk about what is actually
happening and what’s happening
now might impact our future.
Kimberly Pilcher, the Executive Council of Labor Employment for
Council of Labor Employment for
Exxon Mobil Corp, the Scott
Nelson Labor employment
partner, Hutton Andrews Kurth
that has 21 offices across the
country in the world. Good
morning to you both morning.
Good morning. So this is we’ve been hearing this a lot.
been hearing this a lot.
The ghp forecast came out in us
that many jobs that many jobs
are created. That initially
mean that those that many jobs being correct? Right.
being correct? Right.
Absolutely. Go ahead. Can talk
about the energy industry and
how you’re trying to fill
positions. But having a hard
time you are well aware we’re advertising for jobs and we are
advertising for jobs and we are
getting some applications.
But
>> it’s been difficult to fill
a lot of the jobs because we
are losing people as well as
other big companies. >> Have you seen it like this
>> Have you seen it like this
before? Have you ever seen it
like this? Is it? Is it
cyclical like the gas prices
for camp?
>> It is. I think somewhat
cyclical. This is a little bit
nuanced because of the
pandemic. And, you know, we
have employees that are, you
know, moving to different
companies, not just ExxonMobil,
but in general to, you know,
sort of get a better deal for
for themselves either in terms
of pay or, you know, other
benefits.
>> Or this just shut back a
little bit, though, during the
pandemic did not. I mean, terms of setting some jobs and that
of setting some jobs and that
sort of thing. So the quickness
of the population that want to
come back and I’m an oil, for
example, has it?
So out paced your ability to be
able to bring people back into the flow.
the flow.
>> I think so. I mean,
everything lags, of course,
when you know, we have things
coming back online, whether
it’s, you know, our production or whether it’s filling roles.
or whether it’s filling roles.
I think the you know, the key
is getting the right people in
the right job at the right
time.
>> And so it takes a while to
get that, you know, up and
running, not only for ExxonMobil but other companies
ExxonMobil but other companies
as well Sky. You’re telling me
earlier that that there’s a
real challenge right now with
the number of jobs that are
available and compared to the
number of people who are
available to work. That’s
absolutely right. There’s a labor shortage right now.
labor shortage right now.
>> Now in the country, we have
3 and a half percent
unemployment, which is very low
in Houston. It’s 4.7% a little bit higher, but still really
bit higher, but still really
good by historic standards.
But the labor shortage is
really the big news behind all
that as of the end of June, the Bureau of Labor Statistics
the Bureau of Labor Statistics
put out the last numbers.
We have 10.7 million job
openings United States right
now, there’s only 5.9 million unemployed people looking for
unemployed people looking for
work. And so what do we
attribute that to my obviously
the pandemic has to take some
responsibility for this.
I think. But what do we attribute the these numbers
attribute the these numbers
too? Well, you’re absolutely
right. The pandemic was the
start of it. But that actually
spawn a very interesting
phenomenon that a lot of people talked about the great
talked about the great
resignation. A lot of people
quit their jobs in 2021.
Over 47 million people quit
their jobs and this is
continuing. This is an amazing pace. Last month we had 4.2
pace. Last month we had 4.2
million people quitting their
jobs. Now were all these people
going? I mean, to be sure
number of them are coming back
in the workforce are getting
better jobs, making more money,
things like that. But lot of folks are retiring. We’re still
folks are retiring. We’re still
in the baby boomer retirement
phase right now, some people
decided to start a business
we had over 5 million new businesses created last year,
businesses created last year,
which that’s a 55% increase
over 2019, which is a huge boom
year right before the COVID
bust or so people are doing all sorts of things. So Kim,
all sorts of things. So Kim,
what do you do to entice to
people to come back to work and
come work for companies like
ExxonMobil? Well, there that
the you know, to fold question the the current employees that
the the current employees that
we have
>> we’ve been back at work and
in the office actually since
May of 2020, we have a big campus in The Woodlands and
campus in The Woodlands and
then to entice them. We
advertise and put Tino job
postings on our Web site and
then they they can apply for
those jobs.
>> And do you think do you sense that across the board,
sense that across the board,
all kind of different companies
are doing similar kinds of
things that they got to really
so out that line and get these
people coming into work.
That’s exactly right. It’s an employees market right now.
employees market right now.
It’s a great time. By the way,
if anyone is thinking about
getting a job, it’s a great
time to do it.
Some employers are being
treated a bit like professional
athletes. Right now we’re seeing signing bonuses,
seeing signing bonuses,
retention bonuses. People are
getting private offices, all
sorts of things to lure a man.
So with the economy as hot as
it is, it doesn’t make sense
that we have that we’re doing
so well. I mean, the numbers say the economy is really
say the economy is really
humming along, but yet we have
all these people not what would
happen if they get into the
workforce? Do you have any calculations on what that would
calculations on what that would
change? Because would how hot
can we Well, we need to get
people back in the workforce
that will help all of us.
It. It will actually help take
down a bit of this inflation that we’re seeing because one
that we’re seeing because one
of the big statistics is our
labor force participation rate
is down to 62%. What does that mean? That means of only about
mean? That means of only about
3 in 5 working age adults, 18
to 65 are actually working
right now. That’s a really low
number. That’s back to like
the Mid 1970’s. So when you
have that, that’s this worker shortage. They’re not enough
shortage. They’re not enough
people to produce the goods
and services. We need and that
create shortages, which is one
of the drivers of inflation.
Is there a trend now that you
see in terms of in your
industry and generally free
both finish the question of
that going forward, what are
the trends going for that would
entice people to get back and
to work? I think leveraging
workplace flexibility has been
a key.
>> I think that many companies
are rewriting
their policies or route leveraging their crent
leveraging their crent
policies for workplace
flexibility. I think many
companies offered as it in the
base case before the pandemic.
But now it’s become a big issue for employees. And I think to
for employees. And I think to
your earlier question about,
you know, why we have such a
shortage. Part of it is when
people working from home the
expenses that they had to get to work were greatly reduced.
to work were greatly reduced.
And so they’re out of the
workforce because they didn’t
have those expenses before.
>> Trend for you in 20 seconds.
Absolutely. Flexibilities. Number one thing employees want
Number one thing employees want
employers are definitely paying
more money, but it isn’t all
about the money have to
pandemic. People got
introspective thought about
what they wanted to do. Their work. Life was disrupted a bit.
work. Life was disrupted a bit.
So people are making different
choices these days. Good
advice. Good information.
Hope everybody is taking notes
on this because they’re not
going to come back
for you. >> Just to Scott Nelson, thank