The speed of further improvement in the labor market following the initial rush of reopening is less clear, however. Some employers may be cautious about significantly increasing payrolls before post-COVID consumption patterns are more firmly established. Others may be implementing measures to stay lean and contain costs.
In the December Duke CFO survey, roughly one-half of CFOs from large firms and about one-third of those from small firms reported “using, or planning to use, automation or technology to reduce reliance on labor.” 8 In addition to greater use of technology, there is likely a significant amount of slack on the participation and part-time margins.