How Will the Post-COVID Bounce Affect You?
Decision making on whether to hire for accounting jobs is now very delicate, and will be dictated by industry trends. The COVID-19 pandemic has blown a hole in economic growth. It is hard to know how your industry and business will be affected as we continue to navigate the pandemic.
The jobs numbers from the Bureau of Labor Statistics in the first half of 2021 have done little to boost confidence. However, there are some trends developing that could make the picture clearer. In this article we highlight how different sectors have been affected by the worst of the pandemic, and what the future may hold.
Some Sectors Grew During the Pandemic – and Will Continue to Grow
Despite the huge hit to the economy, some sectors grew. Here are four of the main beneficiaries and how they may evolve now.
The demand on healthcare services rocketed as the pandemic gripped the nation. Despite millions of healthcare procedures and treatments being canceled or postponed, to enable our healthcare system to treat the huge numbers of COVID patients, the entire system struggled to cope.
In the COVID environment, we especially saw telehealth servicers and the use of travel nurses explode. As COVID recedes, it is likely that hospitals will try to catch up with the procedures and treatments that were put on hold in 2020. We should expect telehealth, travel nursing, and the health sector in general to have several busy years to come as it plays catch-up.
Another of the big winners, tech also looks set to continue its growth path. Almost overnight, companies were forced to move people out of the office and into their homes to work. From broadband to networking to hardware and software, the tech sector has boomed.
Should we expect more of the same in 2021 and beyond? Many people want to spend at least part of their time working from home. We are becoming used to interacting with people online. Games and streaming services are hot news. As our online lives mature more rapidly than many had previously thought possible, the tech sector should do well – including cybersecurity.
Stores closed during the pandemic. People turned to online shopping portals, and exponential growth followed. Consumers have now found that they like the experience of shopping from home. While some retail sectors may benefit from the opening of the economy (for example, clothes and groceries), many will see a lot of their sales retained in cyberspace.
4. Warehousing and Distribution
Many people were not allowed to leave their homes. Others were scared to. Shopping online caused a boom in delivery services to homes. Some of this will stick. As the consumer industry recovers and saved money starts to get spent, warehousing and distribution is likely to have another busy year.
Some Sectors Receded During the Pandemic – and Will Bounce
Of course, there were some sectors that crashed in 2020. Should you expect a bounce this year and next? Here are four sectors that look likely to outperform.
The hospitality sector mostly closed. As it opens and returns to normal, the growth in the sector could be spectacular. However, this could be problematic for some businesses. Employees who were let go may have found jobs elsewhere, or decided to switch to a sector that is less likely to be affected should another COVID wave hit us.
2. Travel and Tourism
Before COVID halted travel, the tourism sector was growing. As we return to growth and people return to work, disposable incomes and higher savings ratios will encourage people to travel. They have been locked up too long. Expect sectors of the travel and transport industry such as travel agencies, tour operators, and domestic and international airlines to do well – and expect demand for talented employees to increase.
3. Sports and Fitness
People are eager to return to watch live sports and to resume their previous fitness regimes in gyms and fitness centers.
4. Manufacturing, Construction, and Energy
As consumers start spending, we should expect manufacturing to return to growth. It is also likely that manufacturers will seek to produce more within the U.S. for consumers here.
More travel and more people at work will lead to increases in demand for energy, as will the increase in economic activity.
We should also expect homebuilding to make a strong recovery, and the construction industry will be further supported by federal and state spending on infrastructure.
Is Your Finance Department Ready to Handle the Bounce?
It’s still an uncertain world, as the pandemic and its effect haven’t been eradicated. Businesses will need to remain agile in their hiring strategies.
The next 12 months are likely to benefit from the strongest economic growth in history. It’s essential to balance the bounce with talented staff to maximize the benefit from the recovery. The quality of your accounting and finance employees will be key to manage cashflow, wages, and taxes as we bounce back strongly.
Contact 6 Degrees today for the best accounting talent in today’s volatile market.