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With So Many Job Openings, Why So Little Hiring?
Washington Monthly ^ | 08/14/2013 | Peter Orzag

Posted on 08/14/2013 6:37:24 AM PDT by SeekAndFind

An odd puzzle is taking shape in the labor market: Over the past three years, the number of job openings has risen almost 50 percent, but actual hiring has gone up by less than 5 percent. Companies are advertising a lot more jobs, in other words, but not filling them.

To get some sense of how significant this is, consider that if, since June 2010, hiring had risen a third as much as advertised jobs have (rather than only a 10th), and nothing else were different, job creation would be roughly 500,000 higher each month, and the unemployment rate would already be back to normal levels.

So what explains the yawning gap between jobs open and jobs filled?

One possibility is that there is a mismatch between the work that companies need done and the skills that workers have. As Peter Newland of Barclays Plc has said, “We believe that this divergence between openings and hiring is consistent with our view that some of the loss of employment during the recession was structural, rather than purely cyclical, in nature.”

Such a structural mismatch may well explain part of the gap, yet it seems unlikely that it explains most of it. After all, job openings in the retail trade have doubled over the past three years, while hiring has been flat. Is it really plausible that we lack qualified workers for these jobs?

(Excerpt) Read more at washingtonmonthly.com ...


TOPICS: Business/Economy; Culture/Society; News/Current Events
KEYWORDS: hiring; jobs; unemployment
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To: Perdogg

Maybe it reflects a situation of dumbed-down bachelor degrees? So they know the person who went on for a masters was at least somewhat serious?


51 posted on 08/14/2013 8:27:12 AM PDT by HiTech RedNeck (The Lion of Judah will roar again if you give him a big hug and mean it. See my page.)
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To: dfwgator

How right you are....unfortunately employers have convinced themselves that they can obtain first world employees and results while paying third world wages.


52 posted on 08/14/2013 8:28:22 AM PDT by relictele (A community vigilant in enforcing economic, racial and social equality. It was called Jonestown.)
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To: discostu

There is no shortage of labor. If there was, wages would be going up, not down.


53 posted on 08/14/2013 8:28:28 AM PDT by kabar
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To: redgolum

What is “training”? That must be something from a before-time.


54 posted on 08/14/2013 8:29:45 AM PDT by wally_bert (There are no winners in a game of losers. I'm Tommy Joyce, welcome to the Oriental Lounge.)
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To: wbill

True... the “plus experience” matters with school solidity being more and more an enigma today. And it doesn’t need much to get the creds; an internship with a known famous firm can open a lot more doors.


55 posted on 08/14/2013 8:30:01 AM PDT by HiTech RedNeck (The Lion of Judah will roar again if you give him a big hug and mean it. See my page.)
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To: SeekAndFind

being a C++ programmer and a C# programmer is not the same skill. C++ has a much steeper learning curve. Finding skilled C++ workers is not easy, even foreign born ones. I do agree, though, that competition does play a significant role for salaries.


56 posted on 08/14/2013 8:30:05 AM PDT by JohnnyM
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To: SeekAndFind

The companies with the open positions have competition; government handouts are more lucrative than jobs in many cases.

The open positions do not pay what the available workers want for pay. The workers get by on government redistribution. The businesses get a double whammy — they get taxed, then the distribution of the taxes to the workers competes with the businesses for employees.

“Parasitism is a part of every free market.”


57 posted on 08/14/2013 8:34:22 AM PDT by Born to Conserve
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To: central_va
I *do* have a degree, it has nothing to do with my work, however. That's fairly common in IT, my current team is made up people without degrees, one guy is a music major, there are a couple of accountants, and one guy has a BS in sociology, of all things.

Speaking for myself, a degree is little more than a check box. Shows that you can stick with something for four years and have a positive outcome, that's all. What's more important are your capabilities. For instance, I come across guys in IT all the time who got their experience in the military, but don't have a college diploma.

Most of the time, I'd hire them over some instant genius with a four year degree.

58 posted on 08/14/2013 8:41:06 AM PDT by wbill
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To: dfwgator
They post the openings so they can go and whine to Congress about letting in more H1-Bs because they can’t find any “qualified” candidates.

Bingo.

59 posted on 08/14/2013 8:43:10 AM PDT by pierrem15 (Claudius: "Let all the poisons that lurk in the mud hatch out.")
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To: wbill

I’d also suggest the intern try for contract jobs first. With less risk to the employer, a shallower resume can suffice.


60 posted on 08/14/2013 8:45:34 AM PDT by HiTech RedNeck (The Lion of Judah will roar again if you give him a big hug and mean it. See my page.)
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To: SeekAndFind
It's Totally Awesome Dude!
61 posted on 08/14/2013 8:59:53 AM PDT by Oatka (This is America. Assimilate or evaporate.)
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To: wbill

I think I told this story before but we have a “questionnaire” where the applicants fill in the blanks. In order to weed out the libtards, the last question is “President Obama is __________”. If they start writing a PHD-level thesis on why they wanna stick their heads up Obama’a ass, then step 2 which is the interview is a no-go.

I always recommend this step for Freepers business owners.


62 posted on 08/14/2013 9:50:58 AM PDT by max americana (fired liberals in our company after the election, & laughed while they cried (true story))
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To: Resolute Conservative

You are hiring for Developers, what did you expect? Plus, the market is sky-high right now for anyone with some IT experience and under 40 years old. 100K is middle-level pay in some markets now.


63 posted on 08/14/2013 10:44:23 AM PDT by ClayinVA ("Those who don't remember history are doomed to repeat it")
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To: SeekAndFind

My BIL has hired and fired for cause three new graduates in agribusiness in the last year. There were root causes. One couldn’t show up for work on time and lied about other things. One’s mom didn’t like where he was living near the work location and so subsidized him and moved him to more posh digs 30 miles away and he could not show up for work on time. The third didn’t realize he was going to have to go out in the heat and cold to go to the production facilities.

The BIL says that it took more time to manage them than the time it took to do their job without them.


64 posted on 08/14/2013 10:49:15 AM PDT by Sequoyah101
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To: HiTech RedNeck
Well, there are such levels in power EE and it might even make sense to need one.

All the ones I work with are PhD.

65 posted on 08/14/2013 10:52:35 AM PDT by Cyber Liberty (Justice for Trayvon: Dig up his body and shoot him again.)
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To: Hulka
The answer is simple: They are looking for the perfect candidate. Thing is, the “perfect” candidate does not exist.

Government has meddled in personnel decisions to the extent that "hiring wrong" imposes huge penalties on employers. They've become gun-shy. If the government would keep its nose out of things like independent contractor status, straight salary/no benefits compensation, trial-period employment, and flexible part-time/full-time scheduling, America would have millions more people working.

But government does the unions' bidding on these issues, and thus the private hiring process remains highly convoluted and cautious.

66 posted on 08/14/2013 10:55:21 AM PDT by Mr. Jeeves (CTRL-GALT-DELETE)
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To: SeekAndFind

It’s a real problem. I was suckered into one of these, did 2 long interviews in person and a phone interview. Then after the 3rd interview they said ‘The CFO changed his mind and we’re not going to have this position at all’.

Really pissed me off for wasting so much time and gas.


67 posted on 08/14/2013 10:55:34 AM PDT by Monty22002
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To: ClayinVA

$100,000+ is senior or lead in our market.


68 posted on 08/14/2013 11:05:25 AM PDT by Resolute Conservative
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To: Resolute Conservative

and that is why you are having problems, all of your talent is moving to a bigger city that pays a lot more vs a small increase in cost of living.


69 posted on 08/14/2013 11:46:09 AM PDT by ClayinVA ("Those who don't remember history are doomed to repeat it")
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To: ClayinVA

I argue that outside California central Texas has become a major tech hub and pays the appropriate rate. The cost of living in Austin area is not cheap and rising every day.


70 posted on 08/14/2013 12:15:27 PM PDT by Resolute Conservative
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To: HiTech RedNeck
I’d also suggest the intern try for contract jobs first

Good idea, I'll file that one away. Lots of 6-month help desk jobs out there.

With this particular intern, I didn't want to waste a lot of time with him. "Over-entitled" and "not very bright" make for a bad combination.

A couple of years worth of stocking shelves, or pouring coffee, will do him some good. Make him a little hungrier for the next opportunity, and will give him an appreciation for what success looks like, and what it takes to get there.

Or not. :-)

71 posted on 08/15/2013 7:23:21 AM PDT by wbill
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To: Monty22002
Then after the 3rd interview....red flag.

Typically, I start with (and have gone through, myself)

Phone Interview. Screens out the real bad ones....usually.

On site Interview.

Then the decision is made.

For high-level jobs (Director or higher), or if a key person wasn't available, there might be a "final round".

A request for a 3rd interview would set off some warning bells.

72 posted on 08/15/2013 7:28:36 AM PDT by wbill
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To: wbill

Well, I believe it was supposed to be only 2. They were a total mess. I sent them a nasty email after, damn the consequences. The 2nd times I was supposed to go and get SQL tested (I have a degree in MIS, and really think that’s lame but a lot of places want testing now). When I went for the 2nd one they testing guy wasn’t in at all, so they had me talk to the CFO instead.

So I was totally thrown off. I was ready for a technical interview and had one with a guy that literally didn’t know what the reporting system I’d be working on is called.

Then they scheduled an interview to do the technical test online from home and they stood me up on that. Then I got the ‘we’re not going this direction and we’re not doing this job at all’.

After that I told them they are pathetic. The recruiter I was using left me a nasty voicemail. Was the worst interviewing experience of my life and I’m not a noob at them. And each time I went was a pretty far drive. Companies these days know they can do whatever they want and they care less than ever about treating people professionally so screw them.


73 posted on 08/15/2013 10:14:49 AM PDT by Monty22002
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To: Vigilanteman
Then someone attended a seminar at a swank hotel not far from CMU, secretly recorded it and posted it on You-Tube. The title of the seminar (I kid you not) was "How Not to Hire an American." Between the timing of an H1-B bill up for renewal and the embarrassment caused by the viral video clip, one of the IT companies in the Pittsburgh area finally hired the young man.

https://www.youtube.com/watch?v=TCbFEgFajGU

74 posted on 08/15/2013 10:26:23 AM PDT by gaijin
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To: Monty22002
Yick. I suppose everyone has a few good horror stories.

Once, I took a phone interview with a company for (what I thought was) a Windows / VMware position. First thing out of the interviewer's mouth - not "Hi.", not "How are you.", no pleasantries whatsoever - was "How well do you know Unix?"

"I don't, but I'm willing to learn." was my response, approximately.

"OK, thanks for taking our call." (Click)

The interview was at 11:00. I called the recruiter who set it up at 11:00:25, and the first thing he said was "Jeez, this can't be good news." :-)

I later found out that I'd not have wanted to work at this place anyway, it was a real meat grinder. So these things tend to work out.

75 posted on 08/15/2013 10:35:59 AM PDT by wbill
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To: Monty22002
Yep. I have gone on interviews where I was told, "We will be hiring at some point in the future..." There was no job and there never was one.

I have talked to HR people who tell me that they advertise and interview for job openings that do not exist because it makes it look like they are doing something.

76 posted on 08/15/2013 10:46:31 AM PDT by Harmless Teddy Bear (Revenge is a dish best served with pinto beans and muffins)
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To: gaijin

The original clip was about 15 minutes long, but your clip shows the meat. What gets me the most is these obviously American looking speakers in nice suits and skirts talking so matter-of-factly about how to deny opportunities to their fellow Americans.


77 posted on 08/15/2013 12:48:47 PM PDT by Vigilanteman (Obama: Fake black man. Fake Messiah. Fake American. How many fakes can you fit in one Zer0?)
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To: wbill

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78 posted on 08/16/2013 10:33:01 PM PDT by Monty22002
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