There's more bad news for your company if you are short of workers. Not only are you competing with more and more organizations to fill those jobs, but also there are a lot fewer people out there looking. The result: a double whammy for employers that is not likely to end soon.
Three categories shrinking
Figures from the Bureau of Labor Statistics show that the number of people in three critical categories has shrunk by at least 25% in the last five years:
- Number of people looking for work
- Part-timers who would like to be full time
- People who want to work, but are not looking
In fact Alan Greenspan, the Federal Reserve Chairman, estimates that the total number of potential workers has declined from 13 million in January 1996 to only 10 million now. Since that includes people who have given up looking for work, as well as the hard core unemployed, pickings are slim for most companies.
So what are companies doing?
The New York Times recently reported a range of new tools used by companies increasingly desperate to hire employees. Some of the more interesting: Using agencies to recruit immigrants from specific countries, hiring college students who weren't looking for jobs, raising starting pay, flexible schedules, hiring from inner city neighborhoods, and more and more creative benefits, like fancy softball fields.
Situation getting desperate
The "Times" reported that the U.S. economy is now in uncharted territory. Lawrence Katz, a Harvard economist, was quoted as saying: "The last time we had such tight labor markets, in the 1960's, the baby boomers were beginning to take jobs, and they fed the labor pool. We don't have them today, and we really don't know how many people we can draw." According to some experts, the key to the problem is the 36 million people between 16- 64 who are not working, not looking, and not interested in working. If they can be lured into the workforce, the problem may be alleviated.
