What is Stalling the Job Market? | DCR Workforce Blog

What is Stalling the Job Market?

In April of this year, the International Monetary Fund (IMF) predicted that America would grow by 3.6% in 2014 and lead economic recovery at a global level. The off-shoring trend is now being replaced by a commitment to in-shoring. But, the recovery has so far remained uneven and weak though signs of recovery are there in the housing sector, stock market, consumer spending and even the job market.

But, a real recovery in the job market is eluding us, for a variety of reasons.

  • Foremost among them is the cautiousness of employers, who are unwilling to be too optimistic about the economic recovery. According to a survey by CareerBuilder, one in four employers are delaying plans for headcount expansion.
  • A recovering economy tends to demand resources to fill high-skilled and specialized roles. To illustrate, 26% of employers are currently attempting to fill jobs in Science, Technology, Engineering and Mathematics (STEM). A higher percentage of respondents are planning to hire STEM personnel to achieve technological innovations, design new products and to discover new frontiers of science to conquer. Many recruiters today have positions for which they are unable to find candidates with the required qualifications/skills.
  • The lack of required talent is inciting employers to grow the talent through training and development programs as well as association with institutes which impart such training. While some are training individuals with no prior experience, others are sending their own employees back to school to be trained in the required skills. The job market’s recovery is thus impacted by the time needed to complete the training.
  • Employers find it extremely difficult to juggle the need to keep costs down, overcome the skills gap and meet rising compensation expectations from eligible candidates. These pressures operate to keep positions open longer as employers try various options and reject them, and look for others.
  • The high levels of unemployment in the market create a huge pressure on open positions, with innumerable, over-qualified candidates willingly applying for lower-paying jobs, for which they may not have any specific skills. Choosing an applicant becomes more confusing and stressful, considering the wide choice and huge volumes of applications which need to be processed.
  • Cost control measures being adopted by companies are leaving some positions unfilled when they fall vacant for any reason.
  • Last but not the least, a recent study has found that the use of highly specialized resume evaluation software may require such a precise match to keywords that it becomes more or less impossible to match open positions against job seeker profiles.

To find needed talent, and onboard required resources in a shorter period of time, more and more employers are turning to the highly efficacious use of temporary workers. They are also beefing up their abilities to effectively and efficiently manage their contingent workforce. In response, an increasing number of workers are opting for a temporary assignment that may transition to full time work. The questions that can only be answered with time are whether the economy will ever return to prior levels of employment, and whether full-time, permanent positions will remain as the norm.


Disclaimer:
The content on this blog is for informational purposes only and cannot be construed as specific legal advice or as a substitute for competent legal advice. They reflect the opinions of DCR Workforce and may not reflect the opinions of any individual attorney. Do contact an attorney for advice specific to your issue or problem.
Lalita is a people/project manager with extensive experience in operations, HCM and training and development across industries like banking, education, business consulting, BPO and information technology. She believes in a dynamic approach to life and learning as change is the only constant.