Tags: International | Business | Employers | Jobs

International Business Times: Employers in No Rush to Fill Jobs

By    |   Monday, 16 Jun 2014 09:59 PM

Getting a job can be difficult even when positions are available because employers are not hiring as quickly as they did before the Great Recession.

Some 8.7 million jobs were lost after the downturn in 2007 through 2009. All of those jobs have now been recovered. But consider, it took six years to surpass the nation's prior peak of 138.25 million workers, notes MarketWatch.

That's the slowest labor market recovery since the Great Depression of the 1930s, it added.

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The slow pace of growth we've seen in the labor market is partly due to employers' slow-paced hiring decisions, the International Business Times explains.

Since the financial crisis, companies have learned to operate with fewer people. Now, when they hire, they try to be extremely prudent in their decision-making.

“Companies are taking a lot longer to hire. If they hire someone, they want to be sure that person is right on target,” said Faith Casler, founder of staffing and placement agency Faith Casler Associates.

“Before the recession, we would pick up the phone and get someone placed in a day or two. Now it can take four to eight weeks. We’ve had positions open for six months,” she told the IB Times.

Companies do not want to invest too much in training, so they're looking for the candidates who can walk on the job ready to work. And with so many people hunting for jobs, employers have the advantage, and the luxury to scrutinize applicants more carefully.

Kip Wright, senior vice president of ManpowerGroup told the IB Times that employers' behavior is part of a push toward efficiency.

“The recession forced companies to look at their work model in a very different way,” he said. “It’s not that businesses don’t want to hire. It’s that businesses have to be hyper-efficient to provide returns that shareholders are asking for,” he added.

While economists and the media applaud the fact that at least the labor market has recovered, they tend to downplay the fact that job quality has deteriorated.

Last month, average hourly wages rose 0.2% to $24.38. Over the past year, wages have only increased 2.1%, similar to the gains seen each year since the end of the recession.

That's well below what is necessary to kick the economy into overdrive, writes MarketWatch reporter Jeffry Bartash.

The difficulty of getting a job and weak wages are aggravated by declining labor participation rate—fewer people are working or even looking for a job.

Labor participation is at the lowest rate seen in decades. Add that to the unemployment rate, which stood at 6.3% in May, and you get another bleak picture. It could take seven more years to get both metrics back to pre-recession levels, according to the Federal Reserve Bank of Atlanta’s Jobs Calculator, says the IB Times.

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The slow pace of growth we've seen in the labor market is partly due to employers' slow-paced hiring decisions, the International Business Times explains.
International, Business, Employers, Jobs
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2014-59-16
Monday, 16 Jun 2014 09:59 PM
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