Quick Hits - June 9, 2021 - American Society of Employers - ASE Staff

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Quick Hits - June 9, 2021

Do your benefits fail LGBTQ employees? Eleven million Americans identify as lesbian, gay, bisexual, or transgender, 88% of whom are employed, according to the National LGBTQ Workers Center. 56% of the LGBTQ community report experiencing discrimination from a provider and are two to three times more likely to avoid care compared to straight and cisgender populations, according to data from Included Health. For example, Gaurang Choksi, founder and CEO of Violet, a platform dedicated to help the LGBTQ community access culturally competent healthcare, is no stranger to the negative impact a bad consultation can have on an individual. While attempting to refill his PrEP prescription — an antiviral medication most often used as a preventative measure against HIV/AIDS — his network primary care physician in New York City revealed he didn’t know about the market drug, which has been in circulation since 2012. “The thing that disappoints me was that I was there asking for a refill for a medication that I knew I should be on,” Choksi says. “But think about all the other gay men that ended up there or other individuals that never received the guidance they wanted because the provider wasn’t culturally competent for the community.”  Source: ebn.com 6/1/21

Where the manufacturing jobs are – Michigan is not on the list:  The Southwest, comprising Arizona, New Mexico, Texas, and Oklahoma, increased its manufacturing output more than any other region in the U.S. in the four years through 2020, according to an analysis by The Wall Street Journal of data from the Bureau of Economic Analysis. Those states plus Nevada added more than 100,000 manufacturing jobs from January 2017 to January 2020, representing 30% of U.S. job growth in that sector and at roughly triple the national growth rate, according to data from the Bureau of Labor Statistics.  Executives say the region’s growing population makes for plenty of available labor, and its lower cost of living is a draw for new talent.  With an aging workforce, these states have big advantages to this population. Manufacturers in the Southwest have been relatively insulated from pandemic shutdowns and layoffs, and job growth there is expected to continue. More than a year of global supply chain disruptions are nudging more manufacturers to reshore or expand U.S. production, likely benefiting Southwest states the most, said Eric Stavriotis, the head of location incentives for CBRE Group, a Dallas-based real-estate company.  Source:  The Wall Street Journal 6/1/21

Worker shortage is real:  According to the U.S. Chamber of Commerce, there were 8.1 million vacant job openings in the United States—a record high—in March 2021, the latest month for which data is available. That’s up more than 600,000 from February. There are approximately half as many available workers for every open job (1.4 available workers/opening) across the country as there have been on average over the past 20 years (2.8 historical average)—and the ratio continues to fall. In several states and several industries, including hard-hit sectors like education and health services as well as professional and business services, there are currently fewer available workers than the total number of jobs open.  More than 90% of state and local chambers of commerce say worker shortages are holding back their economies, and more than 90% of industry association economists say employers in their sectors are struggling to find qualified workers for open jobs. Source:  US Chamber of Commerce

Training still a high priority for employers:  According to a survey from the U.S. Chamber of Commerce Foundation in partnership with SHRM (Society for Human Resource Management), employers are continuing talent investment despite economic uncertainty. Most employers will either maintain or increase investment in skills training and talent development. 20% of employers plan to increase their investment in skill-based training in 2021, reflecting a growing awareness of the advantages gained by cross-training, upskilling, and reskilling.   Employers noted the major barriers to innovation are money and staff time, while others need guidance on what works best. 40% of employers indicate a lack of time and budget prevents them from adopting innovative changes to their skill-based training offerings. Many employers see government playing some role in providing financing assistance for talent investment. 80% of employers say government grants, loans, or tax incentives would encourage them to further invest or innovate in their skill-based training and development.  Employers also see the need for public-private leadership in in this space. 72% percent of HR professionals say both the public and private sectors have a role to play in facilitating employer collaboration in areas such as skill-based training and development, paid work-based learning (e.g., internships, apprenticeships), and talent recruitment.  Source:  CCH 6/2/21

Healthcare costs decreased in 2020 but will increase 8.4% in 2021:  For the first time in the 16-year history of the Milliman Medical Index (MMI), which measures health care costs for individuals and families receiving coverage from an employer-sponsored preferred provider plan (PPO), costs decreased by 4.2% as a result of the COVID-19 pandemic. Based on restated claims data, health care costs for a hypothetical family of four in 2020 were $26,078, compared to $27,233 in 2019. However, in 2021. the cost of health care for the MMI family of four is projected to be $28,256 and $6,516 for an average individual or about 8.4%. Overall, from 2019 to 2021, employees will see an estimated cumulative 4.0% increase in their total average costs (employee contributions, plus out-of-pocket expenses incurred at point of care), while employers will see a 4.2% bump in their portions of their employee benefit costs.  Source: 2021 Millman Medical Index  5/27/21

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