Beyond the Numbers: May Jobs Report

How is the unemployment rate 5.5%?  From the inside (i.e. the staffing industry which grants me exposure to every industry, company size, etc.) companies are investing in employees (current and additional), new technology and massive initiatives; all of which were non-existent during the downturn.  Essentially they are spending money in order to make money, which is a sign of a very healthy economy. The number of job openings in May reached 5.4 million, the most openings ever recorded since these stats were first tracked. So how do you explain the unemployment rate not just remaining the same, but increasing (even if it’s only by .1%) from April to May? 

It’s not all about that rate, ‘bout that rate:  there are so many other factors that go into evaluating the health of an economy, and the unemployment rate is only one of them.  When you take into consideration the increase in compensation, the number of jobs added, the amount of time positions are left vacant, the unemployment rate for the short term unemployed versus the long term, it tells a different story.  It tells the story of an economy changing right before our very eyes; and any delay in adapting to the new norm will inevitability hurt your business.

One would think that with the unemployment rate where it is and more employed candidates looking to change roles that filling positions would be easier than ever.  Yet, the reality is exactly the opposite, leaving companies with nearly 500,000 vacancies in May.  To sum it up, there are more opportunities for candidates than there has been in over a decade, but it’s taking longer and longer for those openings to get filled.

So what’s the reason for this tale of dual realities?

1. Companies are searching for skill sets that don’t exist. Period. Not just on the unemployed market, but anywhere. Advances in technology have created a need for niche skill sets that were never before needed. We live in a world where being a master of getting attention on social media can be leveraged into a career. Where you are more likely to encounter the work of a good programmer than you are that of an actual human being in your daily routine.
2. Advanced technologies are making certain positions obsolete. If you think about how much of your day to day tasks have been taken over by technology, it will astound you. Then remember that those skills used to be performed by a person; in other words, someone who was employed. Remember when people used to book their vacations through a travel agent? Now we have a plethora of different sites that can be used to schedule your dream vacation.
3. The turnover is among the currently employed. And the currently employed aren’t applying blindly on company websites only to hear 6 months later that they weren’t selected for the role. They are leveraging their network to find opportunities, which enables them to get the inside scoop, and to ensure that the interviewing process is smooth and hopefully expedited on account of their connections.
4. Recruiting professionals and hiring managers are not trained for this market. In a down market, you are more of a gatherer. The bounty is plentiful and most of the time you can’t possibly wrap your arms around it all in one trip. However, in this market, you need well trained hunters. I’m talking sniper level to find what you are looking for. And there is no limit to the creativity and resources that will be utilized in order to achieve your goal. It’s either hunt or… well, you won’t be hunted because you don’t get results.   

Bottom line: don’t let the stagnant unemployment rate fool you.  The talent is certainly out there, but they have the upper hand and they aren’t just going to fall into your lap via an applicant tracking system.  Tap into every resource and get creative!  And remember, for every target you see, there are several other hunters eyeing him or her too…

Happy Hunting!