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Surveys

Special Questions

Texas Business Outlook Surveys
January 30, 2023

Special Questions

For this month’s survey, Texas business executives were asked supplemental questions on labor market conditions. Results below include responses from participants of all three surveys: Texas Manufacturing Outlook Survey, Texas Service Sector Outlook Survey and Texas Retail Outlook Survey.

Texas Business Outlook Surveys

Data were collected January 17–25, and 417 Texas business executives responded to the surveys.

1. Are you currently trying to hire or recall workers?

Jul. '21
(percent)
Oct. '21
(percent)
Jan. '22
(percent)
Apr. '22
(percent)
Jul. '22
(percent)
Oct. '22
(percent)
Jan. '23
(percent)
Yes 68.7 67.9 68.4 65.9 61.6 56.2 49.9
No 31.3 32.1 31.6 34.1 38.4 43.8 50.1

NOTE: 415 responses.

2. What is your assessment of your firm’s current employment situation in light of your six-month outlook?

Oct. '22
(percent)
Jan. '23
(percent)
We are understaffed and looking to hire for new positions  30.8 27.8
We are understaffed and looking to hire for replacement only 19.7 18.6
We are understaffed but opting not to hire at this time 12.3 14.0
We are at our ideal staffing level   21.2 23.0
We are overstaffed but opting not to lay off workers at this time  4.8 6.8
We are overstaffed and laying off workers  3.6 3.9
Other 7.7 5.8

NOTE: 413 responses.

3. Are there any impediments to hiring or recalling workers? Please select all that apply.

Jul. '21
(percent)
Oct. '21
(percent)
Jan. '22
(percent)
Apr. '22
(percent)
Jul. '22
(percent)
Oct. '22
(percent)
Jan. '23
(percent)
Lack of available applicants/no applicants 75.9 75.5 73.3 76.0 74.1 69.4 69.9
Workers looking for more pay than is offered 40.8 50.6 53.4 51.9 52.3 54.9 51.0
Lack of technical competencies (hard skills) 35.1 44.6 43.0 40.8 41.4 44.7 50.5
Lack of experience 32.2 36.1 32.7 38.6 36.8 37.0 42.7
Lack of workplace competencies (soft skills) 25.7 34.1 30.7 33.9 26.4 29.4 34.0
Inability to pass drug test and/or background check 22.9 22.1 17.5 16.3 21.8 18.3 22.3
Lack of child care, including school interruption 11.4 9.2 15.9 7.7 9.1 7.2 6.8
Fear of COVID-19 infection  6.5 11.2 15.5 3.4 4.1 0.9 1.9
COVID-19 exposure or infection  13.5 1.3 1.8 1.3 1.0
Other 7.8 7.2 4.8 7.3 3.6 7.2 4.9
None 0.0 4.8 2.4 5.2 7.3 3.8 3.9

NOTES: 206 responses. This question was only posed to those currently trying to hire or recall workers.

3a. How has the availability of applicants changed over the past month?

Jul. '21
(percent)
Oct. '21
(percent)
Jan. '22
(percent)
Apr. '22
(percent)
Jul. '22
(percent)
Oct. '22
(percent)
Jan. '23
(percent)
Improved significantly 0.5 0.5 1.6 0.6 1.2 0.0 0.7
Improved slightly 24.9 18.2 12.5 20.5 23.3 23.3 28.7
No change 47.6 46.0 40.8 48.9 44.2 54.0 55.2
Worsened slightly 16.8 26.7 35.9 25.6 25.2 17.2 11.2
Worsened significantly 10.3 8.6 9.2 4.5 6.1 5.5 4.2

NOTES: 143 responses. This question was only posed to those noting a lack of available applicants/no applicants.

Survey respondents were given the opportunity to provide comments. These comments can be found on the Comments tab above.

Texas Manufacturing Outlook Survey

Data were collected January 17–25, and 100 Texas manufacturers responded to the survey.

1. Are you currently trying to hire or recall workers?

Jul. '21
(percent)
Oct. '21
(percent)
Jan. '22
(percent)
Apr. '22
(percent)
Jul. '22
(percent)
Oct. '22
(percent)
Jan. '23
(percent)
Yes 80.2 78.0 83.0 73.9 65.5 56.4 52.0
No 19.8 22.0 17.0 26.1 34.5 43.6 48.0

NOTE: 100 responses.

2. What is your assessment of your firm’s current employment situation in light of your six-month outlook?

Oct. '22
(percent)
Jan. '23
(percent)
We are understaffed and looking to hire for new positions  29.8 29.0
We are understaffed and looking to hire for replacement only 21.3 19.0
We are understaffed but opting not to hire at this time 13.8 17.0
We are at our ideal staffing level   14.9 17.0
We are overstaffed but opting not to lay off workers at this time  8.5 9.0
We are overstaffed and laying off workers  4.3 3.0
Other 7.4 6.0

NOTE: 100 responses.

3. Are there any impediments to hiring or recalling workers? Please select all that apply.

Jul. '21
(percent)
Oct. '21
(percent)
Jan. '22
(percent)
Apr. '22
(percent)
Jul. '22
(percent)
Oct. '22
(percent)
Jan. '23
(percent)
Lack of available applicants/no applicants 84.4 82.1 71.8 83.8 83.6 64.2 69.2
Lack of technical competencies (hard skills) 40.3 52.6 52.6 60.3 56.4 52.8 69.2
Lack of experience 37.7 42.3 32.1 44.1 43.6 41.5 50.0
Lack of workplace competencies (soft skills) 24.7 41.0 38.5 45.6 40.0 32.1 46.2
Workers looking for more pay than is offered 44.2 52.6 57.7 44.1 58.2 60.4 44.2
Inability to pass drug test and/or background check 29.9 29.5 26.9 20.6 27.3 24.5 40.4
Lack of child care, including school interruption 9.1 6.4 9.0 8.8 5.5 1.9 3.8
Fear of COVID-19 infection  3.9 7.7 14.1 2.9 0.0 0.0 0.0
COVID-19 exposure or infection  10.3 2.9 0.0 0.0 0.0
Other 5.2 6.4 2.6 4.4 0.0 3.8 1.9
None 0.0 2.6 2.6 5.9 5.5 3.8 1.9

NOTES: 52 responses. This question was only posed to those currently trying to hire or recall workers.

3a. How has the availability of applicants changed over the past month?

Jul. '21
(percent)
Oct. '21
(percent)
Jan. '22
(percent)
Apr. '22
(percent)
Jul. '22
(percent)
Oct. '22
(percent)
Jan. '23
(percent)
Improved significantly 1.5 0.0 1.8 1.8 0.0 0.0 0.0
Improved slightly 20.0 18.8 12.5 15.8 21.7 29.4 22.9
No change 50.8 43.8 44.6 45.6 41.3 50.0 60.0
Worsened slightly 15.4 26.6 28.6 35.1 28.3 17.6 11.4
Worsened significantly 12.3 10.9 12.5 1.8 8.7 2.9 5.7

NOTES: 35 responses. This question was only posed to those noting a lack of available applicants/no applicants.

Texas Service Sector Outlook Survey

Data were collected January 17–25, and 317 Texas business executives responded to the survey.

1. Are you currently trying to hire or recall workers?

Jul. '21
(percent)
Oct. '21
(percent)
Jan. '22
(percent)
Apr. '22
(percent)
Jul. '22
(percent)
Oct. '22
(percent)
Jan. '23
(percent)
Yes 64.5 64.2 63.4 63.1 60.4 56.2 49.2
No 35.5 35.8 36.6 36.9 39.6 43.8 50.8

NOTE: 315 responses.

2. What is your assessment of your firm’s current employment situation in light of your six-month outlook?

Oct. '22
(percent)
Jan. '23
(percent)
We are understaffed and looking to hire for new positions  31.1 27.5
We are understaffed and looking to hire for replacement only 19.3 18.5
We are understaffed but opting not to hire at this time 11.8 13.1
We are at our ideal staffing level   23.0 24.9
We are overstaffed but opting not to lay off workers at this time  3.7 6.1
We are overstaffed and laying off workers  3.4 4.2
Other 7.8 5.8

NOTE: 313 responses.

3. Are there any impediments to hiring or recalling workers? Please select all that apply.

Jul. '21
(percent)
Oct. '21
(percent)
Jan. '22
(percent)
Apr. '22
(percent)
Jul. '22
(percent)
Oct. '22
(percent)
Jan. '23
(percent)
Lack of available applicants/no applicants 72.0 72.5 74.0 72.7 70.9 70.9 70.1
Workers looking for more pay than is offered 39.3 49.7 51.4 55.2 50.3 53.3 53.2
Lack of technical competencies (hard skills) 32.7 40.9 38.7 32.7 36.4 42.3 44.2
Lack of experience 29.8 33.3 32.9 36.4 34.5 35.7 40.3
Lack of workplace competencies (soft skills) 26.2 31.0 27.2 29.1 21.8 28.6 29.9
Inability to pass drug test and/or background check 19.6 18.7 13.3 14.5 20.0 16.5 16.2
Lack of child care, including school interruption 12.5 10.5 19.1 7.3 10.3 8.8 7.8
Fear of COVID-19 infection  7.7 12.9 16.2 3.6 5.5 1.1 2.6
COVID-19 exposure or infection  15.0 0.6 2.4 1.6 1.3
Other 8.9 7.6 5.8 8.5 4.8 8.2 5.8
None 0.0 5.8 2.3 4.8 7.9 3.8 4.5

NOTES: 154 responses. This question was only posed to those currently trying to hire or recall workers.

3a. How has the availability of applicants changed over the past month?

Jul. '21
(percent)
Oct. '21
(percent)
Jan. '22
(percent)
Apr. '22
(percent)
Jul. '22
(percent)
Oct. '22
(percent)
Jan. '23
(percent)
Improved significantly 0.0 0.8 1.6 0.0 1.7 0.0 0.9
Improved slightly 27.5 17.9 12.5 22.7 23.9 21.7 30.6
No change 45.8 47.2 39.1 50.4 45.3 55.0 53.7
Worsened slightly 17.5 26.8 39.1 21.0 23.9 17.1 11.1
Worsened significantly 9.2 7.3 7.8 5.9 5.1 6.2 3.7

NOTES: 108 responses. This question was only posed to those noting a lack of available applicants/no applicants.

Texas Retail Outlook Survey

Data were collected January 17–25, and 70 Texas retailers responded to the survey.

1. Are you currently trying to hire or recall workers?

Jul. '21
(percent)
Oct. '21
(percent)
Jan. '22
(percent)
Apr. '22
(percent)
Jul. '22
(percent)
Oct. '22
(percent)
Jan. '23
(percent)
Yes 71.1 69.6 68.2 68.9 64.3 57.6 48.6
No 28.9 30.4 31.8 31.1 35.7 42.4 51.4

NOTE: 70 responses.

2. What is your assessment of your firm’s current employment situation in light of your six-month outlook?

Oct. '22
(percent)
Jan. '23
(percent)
We are understaffed and looking to hire for new positions  31.8 24.3
We are understaffed and looking to hire for replacement only 19.7 24.3
We are understaffed but opting not to hire at this time 9.1 11.4
We are at our ideal staffing level   22.7 31.4
We are overstaffed but opting not to lay off workers at this time  7.6 8.6
We are overstaffed and laying off workers  3.0 0.0
Other 6.1 0.0

NOTE: 70 responses.

3. Are there any impediments to hiring or recalling workers? Please select all that apply.

Jul. '21
(percent)
Oct. '21
(percent)
Jan. '22
(percent)
Apr. '22
(percent)
Jul. '22
(percent)
Oct. '22
(percent)
Jan. '23
(percent)
Lack of available applicants/no applicants 84.4 75.0 80.0 77.4 86.1 78.9 79.4
Lack of technical competencies (hard skills) 40.6 53.1 50.0 41.9 50.0 36.8 55.9
Workers looking for more pay than is offered 43.8 43.8 40.0 45.2 38.9 42.1 50.0
Lack of experience 31.3 28.1 36.7 29.0 27.8 23.7 41.2
Lack of workplace competencies (soft skills) 31.3 34.4 40.0 25.8 25.0 21.1 32.4
Inability to pass drug test and/or background check 40.6 34.4 30.0 16.1 27.8 28.9 26.5
Lack of child care, including school interruption 12.5 6.3 13.3 3.2 0.0 5.3 5.9
Fear of COVID-19 infection  9.4 9.4 16.7 3.2 2.8 0.0 2.9
COVID-19 exposure or infection  20.0 0.0 2.8 0.0 2.9
Other 9.4 3.1 0.0 3.2 2.8 2.6 2.9
None 0.0 6.3 0.0 6.5 0.0 2.6 0.0

NOTES: 34 responses. This question was only posed to those currently trying to hire or recall workers.

3a. How has the availability of applicants changed over the past month?

Jul. '21
(percent)
Oct. '21
(percent)
Jan. '22
(percent)
Apr. '22
(percent)
Jul. '22
(percent)
Oct. '22
(percent)
Jan. '23
(percent)
Improved significantly 0.0 0.0 8.3 0.0 0.0 0.0 0.0
Improved slightly 37.0 4.2 16.7 16.7 19.4 23.3 25.9
No change 40.7 50.0 37.5 75.0 48.4 53.3 51.9
Worsened slightly 18.5 37.5 37.5 8.3 25.8 16.7 18.5
Worsened significantly 3.7 8.3 0.0 0.0 6.5 6.7 3.7

NOTES: 27 responses. This question was only posed to those noting a lack of available applicants/no applicants.

Special Questions Comments

These comments have been edited for publication.

Texas Manufacturing Outlook Survey

Food manufacturing
  • Labor is available at the higher overall wage structure that occurred during COVID. Our average wage is up from $12 per hour pre-COVID to $19–20 per hour today.
  • After implementing a minimum wage of $15 per hour, we assumed that our applicant pool would increase. That hasn’t been the case. We are still trying to fill open positions that have been open for months. We routinely have interviews set, only to have no-shows from applicants.
Textile product mills
  • We are likely overstaffed by about 15 percent right now but are not willing to lay off or cut hours as we’re unsure if things will pick up. Again, uncertainty is high!
Printing and related support activities
  • It’s really hard to be adding new employees when you can’t get the ones on the payroll a full 40 hours of work.
Chemical manufacturing
  • We are only hiring for key open positions and allowing attrition to reduce the overall head count.
Plastics and rubber products manufacturing
  • Supply-chain issues/delays continue to impact production and delivery times. When one supplier starts to see some daylight and starts getting caught up, another declares force majeure or has some sort of delay that significantly impacts our production. There is no end in sight.
Nonmetallic mineral product manufacturing
  • The skilled labor market is tight.
Fabricated metal product manufacturing
  • We are not seeing the normal applications that we usually see after the first of the year.
Machinery manufacturing
  • It’s just plain hard to find quality people who want to work. The government money has really spoiled young people from wanting to learn and work for future goals. They think that they don’t have to work to be satisfied.
Computer and electronic product manufacturing
  • We do not need to recall workers, as we did not downsize in areas we are growing. We did decrease labor forces that are no longer required due to a business model change. We have a hard time finding qualified talent in the areas of need.
  • We are investing in automation and better tools to improve production efficiency rather than hiring one or two more people.
Furniture and related product manufacturing
  • The preemployment drug screen requirement turns away more candidates than I’d like to say. We have employee safety issues on our workplace property due to an increase in the homeless population in our area of Dallas and little effective response from city of Dallas police, aside from wanting to fine us for the litter and the encampments left on our property. This is getting to be a very big issue in Dallas.
Miscellaneous manufacturing
  • Availability of applicants has improved because we’re paying $4 per hour more than we were just six months ago, and we’re hiring more from alternative sources (first jobs, out-of-prison programs, etc.). We’re now paying just shy of triple minimum wage for jobs that require no skills. It's hard to be competitive when wages grow that fast, but you can’t increase prices.

Texas Service Sector Outlook Survey

Utilities
  • We are OK in terms of staffing.

Social assistance
  • We have recently seen an influx of candidates who are finishing seasonal positions.

Ambulatory health care services
  • The employment pool has improved in both quantity and quality of applicants. Also, the phenomenon of "ghosting" the employer after an interview has been scheduled, conducted or an offer made has reduced.

Administrative and support services
  • Currently, it is taking more time to find the right person to hire and add to our team.
  • If you don't offer a fully remote work environment, it’s unlikely you are going to get experienced staff under the age of 40. We think virtual and online training (which is critical to new hires) is weak and does not meet our standard for an acceptable user experience.
  • Customers are slow to pay, which has caused us to cover some of the work. In the past, we had enough staff to cover, which allowed us to seek out more business.
Professional, scientific and technical services
  • We have a strong team of recruiters, part-time researchers (offshore) and two to three interns (college age). Currently, we are at a perfect level of employees to increase our workload by about 20 percent without needing to bring on more staff.
  • We are on a hiring freeze to jack up profits, which the market has pushed us to do.
  • As a small business owner, I struggle to be competitive with wages and benefits.
  • We are having more difficulty hiring accounting staff (nondegreed) than engineers.
  • At this point, [there are] no work assignments on the six-month horizon.
  • There is a lack of qualified and experienced applicants. We are looking for in-office hires. Remote work is showing signs of inefficiency and loss of productivity.
  • We are looking at eliminating positions.
Truck transportation
  • Increases are planned near term as orders occur.
Publishing industries (except internet)
  • We were forced to increase wages and benefits in 2022 to attract and retain employees. We were forced to increase selling prices in 2022 as a result of increases in supplies and labor expenses. We have seen a decrease in business in 2022. In late November, we were forced to lower employee wages as a result of the decrease in business. We cannot raise prices anymore.

Credit intermediation and related activities
  • Rural markets are tough environments to find competent employees to fill positions. Compensation is an effective tool to entice people currently employed to consider migrating to another job.
  • We are understaffed but having to cut costs by laying off employees because we are currently not profitable.
Repair and maintenance
  • Costs are increasing as sales prices and product demand decline.
Securities, commodity contracts, and other financial investments and related activities
  • The slowdown in applicants may be a function of the time of year.
  • [There are] slight improvements in candidate quality and volume. We attribute that to post-holiday job searchers beginning their search as well as some of the layoffs, especially in the tech sector for information services workers.
Real estate
  • Who’s left to hire is increasingly not worth what they want [for a salary].

Texas Retail Outlook Survey

Nonstore retailers
  • It is discouraging looking for new workers. I see a lot of resumes of possibly qualified people, but often many of those resumes show more than one job per year. Since our jobs require some training, we can't hire anyone who we suspect may leave in a short time. Problems are primarily with younger people. For example, we see them take the whole day off for an appointment and other reliability issues. It is concerning for the future.
  • A few months ago, hiring was more difficult, but it seems to have eased a bit. It's a balancing act to hire new employees in the same position as existing [ones] and have to pay the new person a higher wage. It is causing us to reassess pay strategies.
Motor vehicle and parts dealers
  • We are understaffed primarily in our service center. We need qualified, productive technicians. There is a shortage of qualified employees in the area.
  • We are seeing more applications for employment—not sure what's driving the increase.
Merchant wholesalers, durable goods
  • [We have] no plans to cut back but are not moving as quickly to fill open positions. [We] anticipate a hiring uptick once we have a better line of sight into the year.
Food services and drinking places
  • We are having substantial difficulty recruiting new hires at the entry level/barista [position]. We are essentially still competing with ongoing generous government transfer payments, and although wages have increased materially in the past year, many workers are simply demanding more. We have insufficient [numbers of] applicants and fewer qualified applicants.
  • We have been cutting jobs for the past several months little by little.
  • We can't afford to be fully staffed due to the unprecedented increases in the cost of food and other inputs.

Questions regarding the Texas Business Outlook Surveys can be addressed to Emily Kerr at emily.kerr@dal.frb.org.

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