Job Seekers AND Employers Losing the Battle: Square-Pegged Workers in a Round-Holed Workplace
"...it's evidence of an emerging structural shift in the U.S. economy that has created serious mismatches between workers and employers. People thrown out of shrinking sectors such as construction, finance, and retail lack the skills and training for openings in growing fields including education, accounting, health care, and government."
But wait, there's more:
"As bad as it is now, the mismatch will create bigger problems when the economy begins to expand again. First, the unemployment rate is likely to remain distressingly high because many people who want jobs will lack the appropriate qualifications. Second inflation could pick up sooner than expected if employers are forced into bidding wars to recruit the few people who are qualified for the work..."The article goes on to explain a new index to measure the challenges in the labor market. Referred to as the 'Jobs Misery Index' (I'm not kidding!), it is the sum of the unemployment rate and the jobs openings rate. Why should you care? Well, historically, this number has hung at 8%. But last spring, it started a steep ascent and is now over 10% and some suggest it could stay there, even when the economy starts to recover. One potential reason for it to stay high is the fact that many Americans won't take jobs they feel are beneath them. Another is the inability (or desire) for talent to relocate i.e. job seekers with homes they can't (or won't) sell keep them stuck in a certain place. Yet, while the pride of workers and the immobility of talent hurts job placement rates for sure, the overwhelming factor remains that we've got a large pool of square-pegged job seekers who can't fit into a round-holed workplace. Here's an example: Graduation season is approaching and soon millions of diploma-holding job seekers will start looking for work. Yet, without any practical
"A mismatch of work and workers is never a good thing. But smart policy - combined with realism on the part of the employers and job seekers - can minimize the disruption."Agreed. BOTH sides have to proactively step it up. But, will they? So, let me ask you job seekers: What are you doing to make yourself employable long-term? And, employers: How are you changing your approach to talent selection and development? Share what you are doing to battle the Jobs Misery Index below.