Labor Shortage Impacts of the COVID-19 Pandemic on Entry-Level Employers: Strategies for Hiring Individuals with Disabilities and Justice-Involved Youth

Abstract

Background

Employment is a key protective factor for individuals with disabilities and justice-involved youth, yet hiring outcomes depend not only on job-seeker readiness but also on demand-side employer decisions that were reshaped by pandemic-related labor shortages.

Objective

This study examined how entry-level employers across the United States experienced pandemic-related labor shortages and the strategies they used to fill workforce gaps when hiring individuals with disabilities and justice-involved youth. The study assessed predictors of shortage experience and impact severity and variation in employer strategy use.

Method

Data were drawn from two national employer surveys (N = 2,278). Logistic and linear regression models tested whether demographic, organizational, and industry characteristics predicted shortage experience and impact. A thematic analysis of 1,767 open-ended responses identified six strategy domains. Mixed-methods comparisons examined differences in strategy use by shortage impact level and employer size.

Results

Larger companies had significantly higher odds of experiencing shortages and reported greater levels of impact. Six strategy domains emerged: wage/benefit incentives, flexible work arrangements, inclusive and second-chance hiring, systems and internal workforce development, external partnerships, and expanded recruitment. Employers with moderate or significant impact relied more on recruitment-intensive and incentive-based strategies, while smaller firms emphasized flexibility and low-cost outreach. Survey group did not predict differences after covariate adjustment.

Conclusion

Findings highlight shared demand-side mechanisms across populations and underscore the importance of aligning VR and transition services with employers’ strategy patterns and capacity constraints during labor shortages.