Houston expert: Here's how the pandemic affected the workforce

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Whether it's the “Great Resignation” or the “Great Reallocation,” here's what you need to know about the pandemic's lasting effects on the workforce. Photo via Getty Images

The pandemic has altered many aspects of American life, but perhaps none as much as the way Americans work – or, if they work at all. One startling phenomenon resulting from the pandemic is a massive exodus of people leaving the workforce. On average, around 4 million employees quit their jobs each month in 2021, with resignations accelerating toward the end of last year and hitting a record 4.5 million in November.

These mass departures have created an imbalance in the labor market. As of December 2021, there were 10.9 million job openings in the United States, but only 6.3 million unemployed workers. This imbalance has contributed to the supply chain issues that have plagued many industries, as well as to some of the wage and price inflation we are seeing. Inflation has been rising while our labor force participation rate has plummeted to 61.9 percent, back to around where we were in the mid-1970s. In other words, only about 3 out of 5 working-age adults are actually working.

Embedded in the resignation data are really two types of people: those who are leaving the workforce permanently, and those who are leaving their current jobs for better, or more flexible, work. If the former group refers to a trend dubbed the “Great Resignation,” the latter is more aptly described as the “Great Reallocation.” Although fundamentally different, both trends tell us something important about the ways in which American work life has changed in the wake of the pandemic.

Workers permanently leaving the workforce may be doing so for a variety of reasons. Pre-pandemic, America was already in the Baby Boomer retirement cycle. So, for many people who might have been a year or two away from retirement before the pandemic, the fear and uncertainty resulting from COVID-19 simply delayed those plans. But with 2021’s stock market gains, and retirement accounts flush with cash, many people felt secure enough to pursue the retirement they put off during 2020’s uncertainty.

Another subset of people leaving the workforce likely did so out of a legitimate fear of COVID-19 or, on the flip side, because of burgeoning vaccine mandates. As Americans learn to live with COVID-19, and with many vaccine mandates being struck down or withdrawn, some of these workers will return to the workforce, while others will opt for retirement to avoid these issues. Additionally, with the advent of virtual school across much of the United States, many parents felt pressure to either quit working and stay home with their kids or quit an in-person job to find a work-from-home job.

Still another subset of workers—primarily those in lower-wage jobs—chose to stay home because government subsidies stemming from the pandemic equaled or, in some cases, exceeded their expected earnings from work. Since those subsidies largely ended, many of these workers have been looking to reenter the workforce. However, with the rise of artificial intelligence algorithms pruning resumes for “fit” with certain jobs, a significant employment gap on a worker’s resume could create problems for many who are now seeking work. In any event, many workers looking to get back in the game could benefit from having an expert optimize their resumes so they are attractive to the gatekeeper’s new electronic eye.

Another group of workers resigned to start their own businesses. From January to November 2021, nearly 5 million new businesses were created in the United States. This represents a 55 percent increase over the same period in 2019, which was a boom year right before the pandemic.

The workforce gap stemming from the “Great Resignation” has substantially increased employee bargaining power. In an effort to bridge that gap, employers have been engaged in a war for talent that will continue or, absent a market disruption, even intensify in 2022. In this tight labor market, employers have been realizing that there is a competitive advantage to recruiting talent away from competitors. Wages are up, with no downturn in sight. In November of 2021 alone, pay was up 3.2 percent for employees remaining in their existing jobs. But, for those employees who switched jobs, pay increased 4.3 percent, revealing an advantage to employees looking to “upgrade” their positions. To attract employees, employers are not only offering higher wages, but also, other enticements like signing bonuses, retention bonuses, private offices, and hybrid or fully remote working arrangements.

The pandemic also changed employees’ perspective on work. People became introspective and reevaluated their wants and needs. With so many forced to work from home at the onset of the pandemic, and the overall success of working from home, the flexibility that accompanies working from home has now become ingrained in people’s psyches. Many now prefer or demand jobs with greater flexibility. The success of the work from home phenomenon has also caused several employers to embrace nationwide recruiting of remote workers. These employers greatly benefit from mining a nationwide talent pool and their employees love being able to live where they want, work from home, and still receive great pay. Now, if you want to live in a cabin in Montana or a beach house in Florida, you can do that and still get Silicon Valley pay.

Given the pandemic-driven new market realities, a few things have become clear. First, work from home, to a greater or lesser extent, is here to stay. Second, whether employees work from home or at a business, if we hope to solve supply chain problems, get products back on shelves, and stem the tide of inflation, we need to get Americans back in the workforce. Third, for those considering going back to work, there is no better time than now.

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Scott Nelson is a Houston-based partner at Hunton Andrews Kurth focused on labor and employment.

Two hiring managers weigh in on corporate DEI initiatives amid the pandemic in a guest article for InnovationMap. Photo via Pexels

How Houston companies can use pandemic challenges to foster innovative corporate inclusion efforts

guest column

They say necessity is the mother of invention, and over the last 18 months, that proverb has proven true across the world, from classrooms to boardrooms. Shuttered classrooms and businesses, overflowing hospitals, and social unrest spurred by the killing of George Floyd have forced communities and leaders across the world, and here at home, to find innovative solutions to a myriad of problems.

But even as many people long for a return to normalcy, the truth is that, in many ways, the bell cannot be "unrung." Remote work, which was a necessity for many at the height of the pandemic, has given rise to an explosion of hybrid working environments that show no signs of reversing course. In the midst of this physical separation among colleagues, leaders across industries have been forced to throw out the rulebook and reimagine what it means to collaborate.

Additionally, the disparate impact experienced by communities of color throughout the pandemic has highlighted the importance of programs focused on increasing diversity and promoting inclusion. It is no coincidence, for example, that roughly six months into the pandemic, the general counsels of 12 major financial institutions penned an open letter to the legal community calling for greater inclusivity in the legal community.

So, how can companies transform the struggles presented by the pandemic into a springboard for lasting, innovative inclusion efforts? The answer lies in taking risks, strengthening the fabric of connectivity, and looking to the future.

Crowdsource new ideas

The concept of crowdsourcing is nothing new, but at the corporate level, leaders may overlook its benefits. Hackathons—large, collaborative events originally developed for computer programming or coding—can be implemented across all employment levels to crowdsource innovative ideas.

At Hunton Andrews Kurth, the firm implements the Hackathon concept during the summer associate program, thus harnessing the creativity and progressive ideas of younger talent. When the pandemic forced the firm's 2020 summer program to go entirely virtual, the firm decided to create groups of summer associates across all offices to brainstorm programming ideas aimed at improving and sustaining diversity and inclusion initiatives.

Together with partner leaders, these summer associate teams worked virtually to create truly innovative programming ideas, several of which the firm is currently implementing to recruit diverse talent. The program was successfully replicated in summer 2021, asking participants to hack the problem of associate inclusion. In addition to generating important programming content, these Hackathons increased participant morale, encouraged cross-office collaboration, forged new relationships across various geographic regions, and tackled the timely topics of enhancing law firm diversity and inclusion that will improve client service in the future.

Other industries—from large, global corporations to small businesses—can implement the Hackathon concept to successfully build bridges and harness innovation around inclusion. For example, MIT recently held a successful hackathon to source solutions to the problem of student inclusion during the pandemic, and Microsoft sponsored a hackathon aimed at solving the education and technology gaps of remote learning brought on by the pandemic.

Moreover, experts agree that equity and inclusion initiatives are only successful with buy-in from the c-suite. In other words, fostering an inclusive corporate culture starts at the top. If corporate leadership participates in the Hackathon experience—as a mentor, judge, or coach, perhaps—as opposed to merely sponsoring the event, it sends a message to all employees that the company as a whole values inclusion as a cornerstone of corporate culture.

Embrace virtual connections

The pandemic forced us all to navigate the world of virtual meetings, and with the popularity of hybrid working environments, virtual connectivity is here to stay. Companies must embrace this new virtual frontier and implement programs that engage employees, promote collaboration, and introduce an element of fun.

At Hunton Andrews Kurth, new hires create introductory videos about themselves that are globally shared firm-wide, while veteran lawyers create their own video content introducing themselves and their practices, thus creating an immediate personal connection.

Additionally, virtual events celebrating diversity and inclusion events, such as Black History Month and LGBTQ Pride Month for example, provide opportunities for fellowship across offices and bolster inclusion efforts. Hunton Andrews Kurth hosted a virtual cooking class, based in a Dallas partner's kitchen, celebrating Asian American and Pacific Islander Month in May, which was virtually attended by 132 attorneys firm wide.

Company-wide virtual events such as escape rooms, cocktail-making classes, games and trivia build camaraderie, which deepens the bonds of collegiality and strengthens feelings of inclusion and belonging. Companies should invest in virtual technologies to help facilitate this important new frontier of connectivity, recognizing that increased digital connectivity supports a collaborative and inclusive working environment.

Highlight community outreach

In global companies, high-level, company-wide diversity and inclusion leadership should work in tandem with leadership at the local level. At our firm, for example, in addition to firm-wide diversity leadership, each local office has a specified leader committed to promoting local inclusion initiatives. While virtual events help connect geographically-diverse employees, it is equally important to offer local employees opportunities to connect in person with one another and support diversity programming in the community.

For example, attorneys in Hunton Andrews Kurth's Richmond office recently came together to learn about and pool resources to support a local artist's public art project focused on creating murals to promote open dialogue around racial and social justice. Additionally, employees might select a local DEI educational experience in which to participate as a group outside of the office, then plan to gather informally (in person or virtually) to discuss lessons learned and continue important conversations. When colleagues come together to support local inclusion programs or participate in shared experiences, new connections are forged that help support a diverse and inclusive corporate culture.

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Rudene Mercer Haynes is a partner at Hunton Andrews Kurth, serves as a firmwide hiring partner, and also sits on the executive committee. Alex Gomez is also a partner and serves as a fellow firmwide hiring partner.

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Houston named the No.1 emerging city for biopharma in inaugural report

Biopharma Leader

Houston is ranked No.1 on the first-ever Next 10 U.S. Biopharma Clusters report published by Genetic Engineering & Biotechnology News (GEN).

The report, which ranks the best emerging hubs for life science activities, considered patents, NIH funding, lab space, venture capital investments, and the number of jobs in regions in cities, states and “clusters” across the U.S. GEN touts Houston as the top city for the biopharma industry due to a surge in funding, job creation, medical innovations and startup success.

Here’s how Houston ranked in the report’s different categories;

  • No. 1 for NIH funding with 2,262 awards totaling more than $1.25 billion
  • No. 2 for emerging regions for jobs, with 28,000 jobs
  • No. 2 for lab space, with roughly 8 million square feet in the market
  • No. 6 for patents, with 2,760 patent families

According to BioHouston chairman Jeff Wade, Houston secured half a billion dollars in venture capital funding in 2025 and 2026 to date.

The report called out major biopharm news out of Houston in the last few months, including Bristol Myers Squibb selecting Houston for its $1 billion, 600,000-square-foot manufacturing site and Eli Lily selecting Houston for its $6.5 billion, 236-acre manufacturing site. Both facilities will be located within Generation Park, a 4,300-acre, master-planned commercial district near Lake Houston.

Houston startups like CrossBridge Bio and Duracyte were also mentioned in the report. CrossBridge, which develops antibody-drug conjugates for cancer, was acquired by Eli Lily in April for $300 million. Duracyte, a “living pharmacy” company, was launched out of Rice University’s biotech venture studio RBL LLC this spring and is backed by up to a $45 million Advanced Research Projects Agency for Health (ARPA-H) award.

The startup is working to commercialize its Hybrid Advanced Molecular Manufacturing Regulator (HAMMR) technology, a rechargeable, implantable device that can sense biological signals, monitor tumor environments and adjust therapeutic output in real time.

“There’s a lot of great talent, but the unique advantage that we have is we are able to benefit from a lot of unique clinical infrastructure and clinician insights,” Omid Veiseh, Duracyte co-founder and managing partner of RBL LLC, told GEN. “There are a lot of clinicians here who are eager to partner on investigator-initiated trials.”

The report also touted Houston’s Texas Medical Center, home to the University of Texas MD Anderson Cancer Center and Baylor College of Medicine, and international partnerships like the recently expanded TMC Korea BioBridge.

Other cities to make the list include:

  • No. 2 Minneapolis-St. Paul
  • No. 3 Denver-Boulder
  • No. 4 St. Louis
  • No. 5 Dallas-Fort Worth

States to make the list include:

  • No. 1 Ohio (including Cincinnati, Cleveland, and Columbus)
  • No. 2 Indiana (including Indianapolis)
  • No. 3 Florida (including Jacksonville and Miami-Fort Lauderdale)
  • No. 4 Georgia (including Atlanta and Augusta)
  • No. 5 Wisconsin (including Madison and Kenosha)

Regional state clusters to watch include:

  • Phoenix
  • Pittsburgh
  • Greater Richmond, Virginia
  • South Carolina
  • Utah

See the full report here.

Major Texas-based airlines ground humanoid robots as passengers

In The Air

Two major airlines based in Texas are drawing a hard line between human and humanoid: American Airlines and Southwest Airlines won’t permit human-like or animal-like robots to board flights as passengers.

Fort Worth-based American and Dallas-based Southwest recently adopted bans on robotic passengers after two incidents in which human-like robots joined flesh-and-blood passengers on Southwest flights.

In May, Aaron Mehdizadeh, owner of The Robot Studio rental company in Dallas, was heading from Las Vegas to Dallas Love Field with 3.5-foot-tall Stewie, according to CBS News Texas. Rather than shipping Stewie as cargo, Mehdizadeh bought the robot its own seat using a type of ticket often purchased for fragile items such as wedding dresses and equipment.

But because Stewie was technically a carry-on item, the robot wasn’t supposed to occupy a seat, according to eWeek. Crew members wound up disconnecting Stewie’s battery and relocating the robot to a window seat before takeoff.

Mehdizadeh pushed back on Southwest’s stance regarding the battery, telling CBS News Texas that Stewie’s power supply is a standard battery that’s similar to one for a laptop.

Stewie isn’t the only robot making mischief in the skies. In May, a 70-pound, human-like robot named Bebop caused a stir on a Southwest flight from Oakland, California, to San Diego.

The robot prompted a nearly one-hour flight delay after crew members realized it violated restrictions on large carry-ons and raised concerns about the battery, San Francisco TV station KGO reported. Dallas-based Elite Event Robotics owns Bebop.

Southwest seized Bebop’s lithium-ion battery, but the airline did let Bebop take the San Diego-bound flight.

Southwest’s new robot policy prohibits human-like or animal-like robots from riding in an airplane cabin or as checked baggage, no matter their size or purpose. All other robots, including toys, must fit in a carry-on size bag and comply with battery restrictions, the airline says.

In a statement sent to CultureMap, a Southwest spokeswoman says the airline “has taken a strong stance on this issue and has led the U.S. airline industry with our battery policy.”

“The robot policy is a further evolution of a [safety] journey we have been on for several months. This move was not in response to any single incident,” the spokeswoman adds. “To eliminate confusion, the policy applies to all similar devices, regardless of size.”

Lithium-ion batteries can overheat, catch on fire, or explode on airplanes.

American’s new robot policy, which took effect Monday, August 17, is similar to Southwest’s. The policy prohibits human-like and animal-like robots from sitting in a purchased seat, being stored in an overhead bin or traveling as checked baggage. The ban applies to U.S., international, and regional flights.

“While there have been no known events involving this type of robot on any American flight, this policy was developed following a comprehensive review of safety risks associated with these devices, including the large lithium-ion batteries that power them,” the airline said in an internal memo obtained by the View From the Wing travel blog.

American gate agents have been told not to allow a passenger accompanied by a robot to board a plane or to let a robot travel as a checked item, the memo say.

If a robot is discovered after check-in, American employees are supposed to follow the Federal Aviation Administration’s “undeclared dangerous goods” procedures. These procedures cover hazardous shipments like lithium-ion batteries, explosives, flammable liquids, and compressed gases that lack required warning labels or shipping documents.

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This article originally appeared on CultureMap.com.

Texas A&M, UH rise in global rankings of universities attracting the most attention

visibility report

Houston and Texas universities had a strong showing on the 2026-27 Global University Visibility (GUV) Rankings compiled by D.C.-based higher ed market research firm American Caldwell.

Texas A&M ranked No. 6 on the list—the top rank of any Texas university. Meanwhile, the University of Houston ranked No. 52, a 15-spot jump from its previous ranking.

The GUV rankings rate colleges that garner the most global attention via news coverage, social media influence, website traffic, YouTube views, and general public interest. GUV evaluated over 1,200 universities across 193 United Nations-recognized countries.

Texas A&M, with its No. 6 global ranking, also claimed the No. 5 spot among U.S. institutions. The university climbed 21 spots from its previous rank.

“News mentions were a driver of Texas A&M’s movement in this year’s rankings, and earned media remains one of the strongest signals of relevance,” Tim Doty, associate vice president for earned media at Texas A&M, said in a news release. “Much of that visibility begins with our faculty and research experts, whose work helps explain, solve and give context to issues people care about. When Texas A&M experts appear in news stories about research, discovery, national security, agriculture, health, engineering, service and the future of Texas, audiences see the university not only as large or well known, but as useful, relevant and necessary to the conversations shaping our state and country.”

In the “Public Interest” category, UH also claimed a top 10 global ranking at No.6. UH touts its overall GUV rankings success to Guggenheim Fellowships, MacArthur “Genius” grants, National Academy membership, studies like researchers breaking the superconductivity temperature record, and success on the football field and basketball courts.

“Across the board, there is no question that the University of Houston is a brand on the rise,” Shawn Lindsey, interim vice president for marketing and communications, said in a news release. “People are seeing our story, hearing about the amazing things happening at UH and actively seeking us out to learn more. We are seeing it in record-high student applications, we are seeing increases in trademark licensing revenue, our faculty are earning global accolades. It’s an exciting time to be a Houston Cougar.”

Other Texas institutions to make the top 250 on the list include:

  • No. 22 The University of Texas at Austin
  • No. 104 University of Texas at Dallas
  • No. 159 Texas Tech University
  • No. 178 Rice University
  • No. 191 University of North Texas
  • No. 248 Texas State University

For the fourth year in a row, Harvard University secured the top spot on the list, followed by MIT, Stanford University and Purdue University. The University of Oxford was the top non-U.S. institution at No. 5.

See the full list here.

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