Bruce Steinberg is the labor economist who is most focused on staffing issues. If you’re not subscribed to his monthly newsletter about the Employment Situation, now’s the time to sign up. Bruce’s crisp analysis helps see the national underpinnings of the recruiting problems you face.
It’s not that knowing what’s causing the problem makes it any easier to solve. It’s that knowing that the problem is real allows you to adjust your tactics.
Take this month’s newsletter.
It features a graph that compares job postings (vacancies) and the unemployment rate. For the past decade, the two have had an inverse relationship. (When the unemployment rate falls, vacancies increase and vice versa).
That appears to have stopped.
(For a full sized image, click here)
Notice how the inverse relationship was maintained until the recession. Coming out, vacancies are now at pre-recession levels. Yet, the unemployment rate stays high.
It’s worth underlining that last bit. The number of job openings is now at pre-recession levels. Historically, the unemployment rate would be at pre-recession levels as well.
This is why talk of a “War For Talent” has begun again.
One explanation for the chart is that the people who are unemployed do not have the skills required to fill the positions available. The jobs that are being created (social media pros, data analysts, bio technicians, health care in general) are for people who have other than the skills available.
Yesterday, I went to an amazing conference in San Francisco. It was by and for Recruiters in Silicon Valley. Times are tough for Recruiters in the Valley. The jobs available don’t match up to the skills in the market.
It’s happening in lots of other parts of the country.
The competition for scarce workers is coming to a head, again.