The job market in the United States is dynamic and ever-evolving, with certain states facing more significant challenges than others when it comes to hiring.
A recent study by WalletHub sheds light on the states where employers are struggling the most to fill positions. These rankings are determined based on the job openings rate, both for the latest month and averaged over the last 12 months. Here’s a detailed look at the top states grappling with hiring difficulties based on the study.
Alaska
Alaska stands at the top of the list with the highest job openings rate. The remote location, coupled with extreme weather conditions, limits the pool of potential applicants. The state’s economy relies heavily on industries like oil, fishing, and tourism, which have seasonal employment patterns that further exacerbate the hiring challenges. With a job openings rate of 7.20% in the latest month and 7.41% over the last 12 months, employers in Alaska face significant hurdles in attracting and retaining qualified workers.
Montana
Montana’s rural landscape and low population density make it difficult for employers to find skilled workers. The state’s economy is heavily reliant on agriculture and mining, which require specialized skills not readily available in the local labor market. This contributes to Montana’s job openings rate of 6.70% in the latest month and 6.54% over the last 12 months, highlighting the persistent hiring difficulties faced by employers.
South Carolina
South Carolina faces significant hiring challenges, particularly in the manufacturing and healthcare sectors. Despite economic growth, the gap between job openings and available workforce remains substantial. The state has a job openings rate of 6.40% in the latest month and 6.82% over the past year, indicating a consistent struggle to fill positions across various industries.
New Mexico
New Mexico struggles with a high job openings rate due to a combination of economic factors and workforce availability. The state’s diverse economy, which includes energy production and technology, often requires specific skill sets that are in short supply locally. With a job openings rate of 6.40% in the latest month and 6.47% over the last 12 months, the hiring difficulties in New Mexico are evident and ongoing.
Colorado
Colorado’s booming tech and recreational industries contribute to a high demand for skilled labor. However, the rapid population growth has not kept pace with the needs of the job market, leading to hiring difficulties. The state’s job openings rate stands at 6.30% for the latest month and 6.60% over the past year, reflecting the challenges employers face in attracting and retaining talent.
Maryland
Maryland’s proximity to the nation’s capital means a significant number of government-related jobs, which often have stringent requirements and clearance levels. This, combined with a competitive private sector, makes hiring a challenge. The state has a job openings rate of 6.40% in the latest month and 6.38% over the last 12 months, indicating a persistent issue in filling positions.
Delaware
Delaware, known for its corporate-friendly laws and financial sector, faces hiring issues partly due to its small size and limited labor market. Specialized industries struggle to find the necessary workforce, resulting in a job opening rate of 6.30% in the latest month and 6.38% over the past year.
Louisiana
Louisiana’s economy, heavily influenced by the oil and gas industry, faces cyclical hiring challenges. Natural disasters and economic fluctuations also impact the job market, making it hard to maintain a stable workforce. With a job openings rate of 6.10% in the latest month and 6.43% over the last 12 months, the state’s hiring difficulties are pronounced.
Oklahoma
Oklahoma’s job market, driven by energy, agriculture, and manufacturing, faces hiring difficulties due to the cyclical nature of these industries and a shortage of skilled labor. The state’s job openings rate is 6.20% in the latest month and 6.21% over the past year, reflecting the ongoing challenges in attracting qualified candidates.
Mississippi
Mississippi struggles with high job openings rates, particularly in healthcare and manufacturing. The state’s relatively low educational attainment levels contribute to a smaller pool of qualified candidates. With a job openings rate of 5.90% in the latest month and 6.53% over the last 12 months, employers in Mississippi face significant hurdles in filling positions.
West Virginia
West Virginia faces hiring challenges, especially in industries like coal mining and healthcare. Economic transitions and population decline also play significant roles. The state’s job openings rate stands at 5.70% for the latest month and 6.88% over the past year, highlighting the difficulties employers encounter in recruiting and retaining workers.
Virginia
Virginia’s diverse economy, encompassing government, defense, and technology sectors, leads to a competitive job market where employers often struggle to fill positions quickly. The state has a job openings rate of 6.00% in the latest month and 6.23% over the last 12 months, indicating a sustained challenge in the hiring process.
Rhode Island
Rhode Island, with its focus on healthcare, education, and manufacturing, faces a tight labor market. The state’s small geographic size further limits the labor pool available to employers. With a job openings rate of 6.10% in the latest month and 5.76% over the past year, the hiring difficulties in Rhode Island are significant.
Wyoming
Wyoming’s economy, driven by energy and agriculture, sees hiring challenges due to the specialized skills required and the rural nature of the state, which limits the available workforce. The state has a job openings rate of 5.80% in the latest month and 6.11% over the last 12 months, reflecting the ongoing struggle to find qualified candidates.
Illinois
Despite being a major economic hub, Illinois struggles with hiring in manufacturing and healthcare sectors. The high cost of living in urban areas like Chicago also affects the job market. With a job openings rate of 5.90% in the latest month and 5.90% over the past year, employers in Illinois face significant challenges in attracting and retaining skilled workers.
North Dakota
North Dakota’s energy boom has led to a high demand for skilled labor, but the state’s small population and remote location pose significant hiring challenges. The state has a job openings rate of 5.80% in the latest month and 6.01% over the last 12 months, highlighting the persistent difficulties in the job market.
South Dakota
South Dakota’s economy, heavily reliant on agriculture and manufacturing, faces hiring issues due to the rural nature of the state and the specialized skills required for many jobs. The state’s job openings rate stands at 5.80% for the latest month and 5.78% over the past year, reflecting the challenges employers face in recruiting qualified candidates.
Massachusetts
Massachusetts, known for its strong education and healthcare sectors, has a competitive job market that makes hiring difficult, especially for highly skilled positions. The state has a job openings rate of 5.60% in the latest month and 6.16% over the last 12 months, indicating the persistent challenges in filling positions.
Maine
Maine’s aging population and rural nature contribute to hiring challenges, particularly in healthcare and manufacturing sectors that require a steady influx of skilled labor. The state’s job openings rate is 5.60% in the latest month and 6.15% over the past year, reflecting the ongoing difficulties in attracting workers.
Pennsylvania
Pennsylvania’s diverse economy faces hiring difficulties across various sectors, including healthcare, education, and manufacturing, due to a mismatch between job requirements and the available workforce. The state’s job openings rate stands at 5.80% for the latest month and 5.74% over the past year, highlighting employers’ persistent issues in filling positions.
