Businesses competing for workers as LI's jobless rate remains at record low 2.7%

Long Island’s unemployment rate remained at a historically low 2.7% for the second month in a row in May, state data shows.

It marks just the fourth time in 30 years of record keeping that the rate has been that low. The rate was 4.5% a year ago.

May’s report was "positive basically on all fronts,” said Shital Patel, labor market analyst for the Labor Department’s Hicksville office.

Behind the record low unemployment has been an increasing number of Islanders joining the labor force, a term that refers to the total of all employed residents and all those out of work but actively job hunting.

"This hot labor market is obviously bringing people back into the labor force with prospects of higher pay and also more active recruitment by employers,” Patel said.

The Island’s labor force grew by 18,200 workers, from 1.51 million in April to 1.53 million in May.  The number of employed Islanders rose by 17,400, while the number of unemployed grew by just 800, suggesting that nearly all those who stepped off the sidelines and looked for jobs last month found work.  

All told, Long Island’s labor force and number of employed residents was the highest it's been for the month of May since 1990, while the number of unemployed residents is at its lowest for the month, Patel said.  

Although positive incentives, like higher pay, greater job flexibility and remote work arrangements may be luring many Islanders back into the workforce, Patel said that higher costs due to inflation may also be playing a role.

“More people who were on the sidelines may also be feeling the pressure to get back to work as inflation is taking a bigger chunk out of the savings cushion that they had built during the pandemic,” she said.

For Bill Gellert, who co-owns nine Five Guys Burgers & Fries locations in Suffolk County, the tightening labor market has made staffing more challenging and has required the burger chain to be more competitive.

“There is an impact on the quality and depth of the talent pool that’s available,” said Gellert, who also co-owns 44 other Five Guys locations with three of his cousins.

Gellert said while his Island locations have unfilled openings, the burger chain has been able to attract and retain workers by offering higher wages and advancement opportunities.

The stores use specialized software that expedites the interview and hiring process, he said,  so that jobseekers who apply through online job boards like Indeed can immediately schedule an interview with local Five Guys management.  

“While it’s a very challenging environment, it forces us to be better employers,” he said. “We have been fortunate that we have not been forced to shorten hours or reduce services.”