According to the May numbers released by the BLS Job Openings and Labor Turnover Survey (JOLTS), there were 5.43 million job openings in the United States as of May 2015. The report tracks of the number and rate of job openings, hires, and separations for the nonfarm sector by industry and geographic region. The graph below, based on the latest JOLTS report, is illustrative of the open job positions which are dogging the job market as a whole and particularly troubling some of the industry sectors like:
A bleak job market inevitably encourages self-employment and results in the development of the small business sector. According to the Bureau of Labor Statistics, 15 million (or 1 in every 8) Americans are currently self-employed, whether incorporated (BLS Series Id: LNU02048984) or unincorporated (BLS Series Id: LNU02027714).
As the unemployment rate continues to decrease and more join the ranks of people not looking for work, the open positions in the job market are faced with progressively less hope of being filled with high quality workers. There is no doubt that a wide range of businesses are having trouble attracting high-quality workers, but the problem is particularly difficult for small businesses. Small businesses face unique difficulties when faced with the need to recruit high caliber workers, as they:
The July 2015 survey of small businesses by the NFIB Research Foundation shows that job creation was flat, with 48% of the respondents reporting that they found few or no qualified applicants for the positions they were trying to fill while 16% used contingent workforces. There is no doubt that contingent workforces are well suited to the needs of small businesses. The reasons could be found in the way the whole industry is structured and operates:
Any company, regardless of size, can benefit from a blended workforce of permanent and temporary employees. Small and mid-tier businesses would benefit from adopting contingent workforce programs, not only because they bring in the needed talent but also they provide a source of highly competent workers who can also be converted to permanent employees without establishing expensive recruitment programs.
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