Great News For Job Seekers!
According to a recent market report available from Staffing Talk, statistics from 2014 show promise for job opportunities at higher wages. Here are some of the more favorable excerpts as well as the impact these job openings will have:
· Unfilled positions at U.S. companies climbed in December to a nearly 14-year high, while the number of Americans actually hired advanced to a seven-year high. Economists say a pickup in wage growth might be next.
· BloombergBusiness reported job openings rose 181,000 in December to 5.03 million, the most since January of 2001.
· The feds say an increase in the number of people who quit jobs on their own shows greater optimism about finding work elsewhere as stronger demand prompts a pickup in job listings.
· One aspect “that really sticks out here is the very large number of people who found new jobs in the month,” said Lou Crandall to Bloomberg. Crandall is the chief economist at Wrightson ICAP in Jersey City, New Jersey. “Having the confidence to leave a job and look for another one is an important contributor to that.”
· The ratio of unemployed job seekers to openings fell to 1.7 with this last report. That is the lowest level since November of 2007, a month before the last recession began.
· Bloomberg reports that not only are unfilled job openings up at recent-record levels, the number of people actually hired climbed to 5.15 million in December, the most in seven years.
· Economists say that even with that gain though, the increase in the number of unfilled openings indicates companies are having trouble finding qualified help.
· Some 2.72 million people quit their jobs at the end of 2014. That is the highest rate in four months.
· Bloomberg quotes: “This is another straw in the wind consistent with my view that wage growth will have to pick up this year, as firmer growth means that businesses have a more urgent need to fill those openings and a diminishing pool of available workers means that it will take more pay to entice remaining candidates.”
Along with the positive report of unfulfilled job openings, statistics provided by the BloombergBusiness report also demonstrate some unfavorable news:
· Approximately 1.73 million workers were fired from their jobs at the end of last year, up from 1.66 million the month before.
· The unemployment rate also rose from 5.6% to 5.7% as more than a million Americans came into the labor force looking for work.
Economic Cost Variables of Vacant Job Openings
Senior Vice President, Paul D’Arcy, from Indeed.com performed a study on the economic effect unfilled jobs have on the U.S. economy. According to a report by Fortune, the Unites States loses more than $13 billion dollars a month or approximately $160 billion a year due to vacant job openings, especially those jobs that remained unfilled because of gaps in skills.
In a 2014 survey by CareerBuilder of 1,025 employers, 1,524 job seekers and 205 academics nationwide, the skills gap is affecting the U.S. labor market. Here are some of the findings:
· 60% of employers are concerned about the costs associated with delays in filling open positions
· 1 in 4 employers have experienced losses in revenue as a result of not being able to fill open positions.
· Morale can go down due to employees shouldering heavier workloads,
· Unfinished work can cause delays in delivery times and declines in customer service.
· When asked what is driving the skills gap, employers identified gaps in education (the educated labor supply in the U.S. is not keeping up with demand); gaps in expectations around wages (employers can’t or aren’t willing to pay market value); job requirements that are above entry requirements (roles are more complex); and new or shifting technologies that make it difficult for educational institutions to keep up. (Source: StaffingTalk)
Matt Ferguson, CEO of CareerBuilder commented, “There is a growing disconnect between the skills employers need and the skills that are being cultivated in the labor market today. This causes workers and companies to miss out on realizing their full potential and, in turn, causes the economy to fall short of its potential. The onus is on businesses and the public sector to work side by side to identify where there is a deficit of talent and re-skill workers to close the gaps within their communities. This is not a problem that can be solved overnight, but it can be solved.”
At Dynamic Office and Accounting Solutions, we are always looking for news to share with our candidates and clients to keep them informed of employment conditions. We are so excited to pass on information that will inspire our candidates to know there are job opportunities available to them in the Greater Bay Area and to help them in their endeavor to secure employment. Should you need assistance with a skills assessment, building a resume, prepping for an interview, or looking for a job, please do not hesitate to contact us. We are here to help and fill those job openings!