Companies have cut their head-count to the bare bone to survive The Great Recession. This has actually improved their productivity - nationally rising by 6.2% in the fourth quarter. So when will they begin to hire again? Many, after squeezing more output from their existing workforce, are downright paranoid about adding new positions because of a lack of confidence in the sustainability of the recovery.
Let's face it, American businesses have gone through a painful experience, just to weather the economic downturn, and are understandably reluctant to add new employees. Especially when they discovered they could do more with less - less employees that is. What does this do to the current job market?
The Labor Department released the latest (estimated) unemployment number of 9.7% - a slight decrease from 10% at the end of last year. But, at the same time, they revised the number of jobs lost last year upward by 930,000. Since the beginning of the recession, the number of jobs lost has also been revised from 7.2 to 8.4 million. The Labor Dept. unemployment percentage doesn't take into account the 6.3 million long-term unemployed who have expended benefits nor the discouraged workers who have given up looking. Labor experts believe the "true" rate of unemployment is now 16.5%. Most don't expect the problem to get better any time soon. It is estimated that there are an average of 6 people searching for each available job opening.
We are in a classic Catch 22 situation: with 70% of our economy driven by consumer spending, we must see the demand for goods and services increase where businesses will be stretched beyond existing capacities. They will have to hire additional employees to keep up with the new demand. But that could be a slow process with almost 1 in 5 workers unemployed - most likely eliminating any discretionary consumer spending, which our system is so dependent upon.
Workers can only be pushed so far before the added stress of more hours and higher production rates takes a toll. It has been argued that the left-behind workers, who have been forced to take on added workloads of the workers laid off, have it the roughest. They are forced to work longer and harder causing stress - leading to depression and even physical illness. Not only are they stretched near the limit, the "unknowns" of their jobs possibly being cut next adds to the stress, and can be debilitating.
If employed in a company pushing you to the limit, you must begin a dialog with your manager that you are giving your all - but it cannot go on forever. The company has kept you around for a reason - perhaps you have become the "go to" person, as well as performing your job well. This certainly will help solidify your position, but should also give you the respect to yell "uncle" when the workload becomes too heavy.
Unemployed and looking at a company from the outside, first do your research on the company and determine it is a good fit for you. Use your network to connect with someone (or someone who knows someone) inside the company that interests you. Find out if they are stretching their employees to the limit or preparing to hire from the outside. You might even suggest doing some contract work for them, so they can keep up with their demand without the long-term risk of adding full-time employees in this time of uncertainty. This will give them exposure to you and your set of skills - and gives you a peek into their culture, management style, and the long term viability of the company. It can be a win-win situation.
Richard S. Pearson is the Author of 5 Necessary Skills to Keep Your Career on Track. He has held vice-president positions with four multibillion dollar travel industry companies and three Internet early stage companies. He has a BA degree from Regis University in Organizational Development. His experience has given him a unique perspective on how to navigate the organizational structures of both large and small companies. He has hired and trained hundreds of employees from frontline salespeople to vice presidents, and coached many through their careers. He is currently working on facilitating the large increase of travel between the US and China, which is taking place. http://www.5necessaryskills.com |
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