Manufacturing Sees Unprecedented Workforce Shortfall
The Numbers: The hiring crisis facing the manufacturing industry could get worse per a 2018 skills gap study from Deloitte and The Manufacturing Institute. The skills gap impacting the manufacturing industry is forecasted to increase from about 488,000 open jobs today to around 2.4 million jobs in 2028.
Turnover is at an All-Time High
The Numbers: Turnover in the U.S. was at 19.3% so far this year, which is a full percentage point up from 2017 and more than 3.5 percentage points since 2014 per a report from Compdata. The industries with the highest turnover were hospitality, healthcare, and manufacturing and distribution. Those with the lowest turnover were utilities, insurance, and banking and finance.
U.S. Hiring Growth Flat
The Numbers: Per LinkedIn’s November Workforce Report, U.S. hiring growth has leveled out. “Gross hiring in the US rose 3.8% year over year in September; seasonally adjusted national hiring remained steady, edging down just 0.3% from September to October 2018.”
Economists Raise Forecast for U.S. Job Growth
The Numbers: “Economists raised their estimates for job gains this year and in 2019 but kept their outlook for the unemployment rate mostly unchanged, according to the fourth-quarter Survey of Professional Forecasters released today by the Federal Reserve Bank of Philadelphia.
The economists expect the unemployment rate to average 3.7% in this quarter as well as the first quarter of next year, unchanged from the previous forecast.
The jobless rate forecasts for the second and third quarters of next year are also unchanged at 3.6%; the new report forecasts the 3.6% unemployment rate to remain through the fourth quarter of 2019 as well.”
Job Seekers Not Clear On if Employers Are Using AI
The Numbers: A study by Clutch found that more than 60% of those looking for a job aren’t sure if employers are using AI to screen resumes. 32% of those applying don’t think they are using AI as a screener and another 32% believe it’s a possibility but they’re not sure.
Recruiters Review Resumes for Under 10 Seconds
The Numbers: Recruiters today take a look at resumes for about 7.4 seconds, up from 6 seconds in 2012 per the 2018 Eye-Tracking Study from Ladders. Resumes with simple layouts as well as clear sections and heading titles caught the eye of recruiters most.
Stress at Work is Increasing
The Numbers: 65% of respondents stated that their stress level of today is higher than it was five years ago per a survey from Korn Ferry International. 76% of those responding found that stress from work has impacted their personal relationships negatively while another 16 % left a job due to stress.
Jobless Claims Average Decreases, Continuing Claims Hit 45-Year Low
The Numbers: “The US four-week moving average of initial claims for unemployment insurance edged down to 213,750 last week, down 250 from the previous week’s average, the US Department of Labor reported. However, the previous week’s average was revised upward by 250.
The four-week moving average smooths the volatility of the week-to-week numbers. Total initial claims for unemployment insurance for the week ended Nov. 3 fell to 214,000, down 1,000 from the previous week’s level, which was revised upward by 1,000.”
Amazon HQ2: A Tale of Two Cities
The Numbers: The upcoming Amazon HQ2 will be split between New York City and Northern Virginia, creating 50,000 jobs. An Operations Center of Excellence will also open in Nashville, TN, bringing more than 5,000 jobs to that area.
Underemployed Grads Equal a Hiring Advantage
The Numbers: 43% of new graduates are underemployed in their first job post-college, but depends upon the major, per research from Burning Glass Technologies. Engineering graduates the rate of underemployment is as low as 29% but in others such as Culinary/Personal services, it can be as high as 80%.
Only a Quarter of Americans Have Their Dream Job
The Numbers: About 25% of Americans have their dream job per a survey from MidAmerica Nazarene University. The majority of the respondents cited the entertainment industry as one they would like to work in – many were content in their current professions such as HR, IT, accounting, government, and healthcare. Those that felt they are currently in their dream job were more likely to have a higher salary, hold a doctoral degree and many were living in the Southwest and of the baby-boom generation.
Career Development and Meaningful Work Key for Employee Value Proposition
The Numbers: Per a Mercer study, career development and meaningful work were found as top drivers to increase employee value proposition (EVP). 50% of the HR leaders polled cited talent scarcity as a concern and 90% of C-Suite executives expect talent competition to increase even more in the next few years. Turnover costs were estimated at 90%-200% of that employee’s salary per Mercer.
Majority of Tech Professionals in NY Area Plan to Switch Jobs
The Numbers: The tri-state area of Metro New York, Connecticut, and New Jersey are a continuous challenge for recruiters per the ‘Candidate Perspective Survey’ from Benchmark IT. 58% of respondents stated they expect to switch jobs within the next year, which is five times more than the national average. Per the survey, salary is not always the top reason for switching jobs – 41% selected ‘skills growth and opportunity’ whereas only 12% chose ‘salary’.
Tight Labor Market Impacts Cities Requiring Specific Skills
The Numbers: The city with the biggest ‘skills gap’ is San Francisco, per LinkedIn’s November Workforce Report. The most in-demand skillsets there are oral communication, business management, and leadership. New York City was second with oral communication, leadership, and digital literacy as skills most in-demand.
New Report on Lack of Women’s Advancement in the Workplace
The Numbers: In their report, the Canada-U.S. Council for Advancement of Women found that a ‘lack of clear goals and objectives, accountability, and metrics’ have been obstacles in closing the gap between men and women in the workplace. About 36% of Canadian companies and 40% of U.S. companies have a plan and only 52% and 59% respectively, even have data as to the percentage of women in their organizations.
1 in 3 Managers Can’t Manage High-Stress
The Numbers: Per research from VitalSmarts, one in three managers find it hard to handle high-pressure situations calmly. 53% of managers that are under stress are more ‘controlling and close-minded than open-minded and curious’. This can increase turnover and budgets, as well as decrease quality of output.