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Old 06-12-2014, 11:29 AM  
Direckshun Direckshun is offline
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Jobs are opening up like crazy, but companies aren't really hiring.

This is a super interesting trend that I'd like your guys thoughts on.

Right now, we've reached a seemingly positive development, where there are now just 2.2 unemployed folks for every job opening. This is a really good spike over the past couple years -- yet companies are extremely hesitant to hire.

The question is, why?

My theory is two-fold, and perhaps you guys can offer your own theories.

1. Companies have jacked up the expected productivity of their workers to such a ridiculous extent that even though job openings are technically presenting themselves, companies aren't feeling the need to fill them. The ridiculous rise in productivity without a subsequent rise in wages has allowed companies to get more out of each employee for less.

2. Companies have trillions of dollars sitting in their coffers that they simply haven't invested since the recession hit. Companies cut tons of workers, went into extreme austerity, and now that the economy has come out of the recession and their sheets show them deep in the black, they simply haven't invested it like they normally would have prior to the recession. And this can be borne out in the (non-)hiring trends.

Thoughts?

http://fivethirtyeight.com/datalab/f...g-a-job-hasnt/

Finding a Job Opening Has Gotten Easier, But Getting a Job Hasn’t
By Ben Casselman
1:27 PMJun 10



Companies posted more job openings in April. Now if only they’d fill them.

There were 4.5 million jobs available in the U.S. at the end of April, the most since August 2007, the Bureau of Labor Statistics (BLS) reported Tuesday. Job postings are up 16.5 percent over the past year and have more than doubled since their 2009 low.

Actual hiring, however, is a different story. Hires were essentially flat in April and are up less than 6 percent over the past year. This has been a persistent pattern in the recovery, as the above chart shows.

One reason for the faster rebound in openings is that they fell further during the recession; companies pulled back on posting jobs even more than they did on hiring. But that isn’t the whole story. The ratio of hires to openings, which spiked during the recession, has fallen steadily through the recovery and is now below normal levels. That suggests companies aren’t filling available jobs at their usual pace.



(An important note on this chart: The BLS reports hires and openings differently. Openings are counted at a moment in time — the number of jobs available at the end of the month — while hires are a total for the whole month. So a one-to-one hires-to-openings ratio doesn’t mean every job was filled, because some jobs get posted and filled within a month, and therefore never show up in the data. So pay attention to the trend, not the absolute numbers.)

It isn’t clear what’s behind that reluctance to hire. Many employers, particularly in industries such as construction, blame a shortage of workers with the necessary skills. Some economists, meanwhile, argue that companies are struggling to fill jobs because there are fewer available workers than the 6.3 percent unemployment rate might suggest. But there’s reason for skepticism about both claims: Wage growth remains anemic (though that may, at last, be changing), which suggests employers aren’t being forced to pay more to attract workers.

The most likely explanation remains the simplest: the weak recovery. Companies are seeing more demand for their products, so they’re posting job openings, but that demand isn’t yet strong enough for them to fill those positions quickly. They’re content to wait for the perfect candidate to show up. (In economics jargon, companies’ “recruiting intensity” remains low, as it has been throughout the recovery.)

The good news for the unemployed is that more openings means more chances to land a job. There were 2.2 jobseekers for every available position in April, the best ratio since before the recession began. But those openings don’t mean much if companies won’t fill them.

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Old 06-13-2014, 07:12 AM   #46
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Originally Posted by KC native View Post
Unions weren't the ones making the assumptions or inadequate contributions to the plans.

Color me not surprised that you don't understand that.
KCN- SOME companies and SOME unions are responsible for inadequate contributions.
This is a list of unions in 2013 that were not adequately funded. These are the pension plans that the unions control.
http://www.dol.gov/ebsa/criticalstatusnotices.html

I realize that union and company pensions were hit hard due to poor investments during the down turn in the economy causing part of the under funding problem.
It is a shame that companies and unions have left some to worry about their retirement future.

My only point in all of this is that the union is not the cure that some think they are.
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Old 06-13-2014, 07:40 AM   #47
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IMO, collective bargaining does play a role (that can be beneficial) in the marketplace.
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Old 06-13-2014, 07:45 AM   #48
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Quote:
Originally Posted by Loneiguana View Post
collective bargaining equaling out the two different sides of negotiation, so it isn't a lone worker versus the company. This leads to better pay, benefits, and worker protection.

I don't understand why people don't want a say in their workplace. Why do you hate representation?
For companies that don't have great employee relations efforts, aren't paying and providing competitive benefits, they may well deserve the 3rd party interference.

I would argue that unions have not been successful in all cases to provide better anything or protection.....concessions are happening and the unions are not protecting employees. They only thing they are protecting is the union revenue stream through union dues.
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Old 06-13-2014, 11:05 AM   #49
Direckshun Direckshun is offline
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Originally Posted by WhiteWhale View Post
Does Direkshun think that Wal Mart employs everyone in the country?

Geezus. This seems to be a liberal thing where every business owner is is viewed as sitting on a few trillion dollars. Thats, you know, not how it actually is.
That's a pretty obvious strawman of my position.
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Old 06-13-2014, 03:04 PM   #50
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One more tid bit, for young executives going through their first market cycle many will learn the value of downsizing. After letting your weakest go the next cycle of cuts are usually to those who never truly fit the culture. Something amazing happens next, the productivity goes way up and the enviroment improves leaving those executives wondering why they didn't do this earlier. When it comes time to fill those seats again they are much more likely to leave them empty than fill them with people they do not fill are perfect matches. Even veterans relearn this process. You simply cannot overestimate the importance of culture in business, period.
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Old 06-13-2014, 06:29 PM   #51
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I remember back after 9/11 my company cut a bunch of jobs in response to "terrorism". This was of course a way to eliminate jobs while making the newly unemployed not feel so badly. It wasn't them, of course. It was the dudes hijacking planes that did them in. We cool bro? (fist bumps them on the way out the door)
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Old 06-13-2014, 06:40 PM   #52
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Quote:
Originally Posted by BIG_DADDY View Post
One more tid bit, for young executives going through their first market cycle many will learn the value of downsizing. After letting your weakest go the next cycle of cuts are usually to those who never truly fit the culture. Something amazing happens next, the productivity goes way up and the enviroment improves leaving those executives wondering why they didn't do this earlier. When it comes time to fill those seats again they are much more likely to leave them empty than fill them with people they do not fill are perfect matches. Even veterans relearn this process. You simply cannot overestimate the importance of culture in business, period.
This X eleventy billion!
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Old 06-13-2014, 06:43 PM   #53
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Originally Posted by Prison Bitch View Post
I remember back after 9/11 my company cut a bunch of jobs in response to "terrorism". This was of course a way to eliminate jobs while making the newly unemployed not feel so badly. It wasn't them, of course. It was the dudes hijacking planes that did them in. We cool bro? (fist bumps them on the way out the door)
How convenient right?
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Old 06-13-2014, 07:40 PM   #54
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well look out ....they government should probably make you get a job first
I've been at my current job for four years. I know this is DC, but you can do a lot better job trolling.
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Old 06-14-2014, 06:57 PM   #55
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I've been at my current job for four years. I know this is DC, but you can do a lot better job trolling.
Excellent
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Old 06-14-2014, 07:39 PM   #56
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Quote:
Originally Posted by BIG_DADDY View Post
One more tid bit, for young executives going through their first market cycle many will learn the value of downsizing. After letting your weakest go the next cycle of cuts are usually to those who never truly fit the culture. Something amazing happens next, the productivity goes way up and the enviroment improves leaving those executives wondering why they didn't do this earlier. When it comes time to fill those seats again they are much more likely to leave them empty than fill them with people they do not fill are perfect matches. Even veterans relearn this process. You simply cannot overestimate the importance of culture in business, period.
That right there was a masterful post. You never miss the bottom 20% of your performers. Culture , when its good, breeds success.
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Old 06-14-2014, 09:56 PM   #57
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Hiring people is what I do for a living. Lack of qualified candidates is #1 for sure. Companies aren't going to train people these days. You need to have this, that and the other just to get a phone screen.

Pay is another issue but not usually at the level I deal with. For some reason people come out of college expecting $60k. I'm not sure who's telling them this but those expectations need to be adjusted earlier in the process. I'm guessing that it's the schools that are selling them on the idea of getting a degree. Only 10% of the position I work on (Fortune 100 company) require a degree and it's usually because the hiring manager spent a fortune on an MBA and only wants people like them.
Same. Candidates are brutal right now in 2 of my 3 markets.
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Old 06-15-2014, 06:45 AM   #58
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If you're looking at it from two sides:
-Regulatory requirements are outrageous. Small businesses should be the growth engine of this economy; instead, they are saddled with bullshit regulations that strap them down. They are afraid to innovate because there is an increased risk of failure and they have to do so on tighter margins.
-From a corporate standpoint, regulations continue to saddle. Do you realize how many people have to be hired just to get their business in compliance with Dodd Frank, and how difficult that is if you're a small regional bank who can't afford to hire a bunch of lawyers? I've worked in financial services. You wouldn't believe the amount of time wasted just making sure something is in compliance. Also, as risk goes up, so do risk management requirements. Corporations either have to buy more insurance or hold more money back in reserve as a rainy day fund in case they get sued
-Lots of technical jobs available, but our education has moved away from that kind of training
-Because the safety net has disappeared, lots of boomers working past retirement. In unionized environments, lots of high salaried workers with tenure being protected. In many cases, one tenured salary = two entry level salaries
-Executive pay is too high. When the economy slumps yet executive comp goes up. Huge problem. Boards and executives have responsibility to the shareholders. Justifying more pay when a company is losing money is flat out irresponsible, as are the ridiculous golden parachute payouts. That money should be invested back into growing the company, which creates jobs. I will never understand an executive that claims to put the company at their best interest, yet wastes millions of dollars on themselves
-Of course, a lot of the reason behind these regulations is stupidity by private sector employees gaming the system. They can't be held blameless either
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Old 06-15-2014, 11:09 AM   #59
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This economy is fraudulent, and the gig is almost up.

A country that doesn't make anything anymore can only sell itself so many manicures and cheeseburgers before the money runs out.
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Old 06-15-2014, 11:10 AM   #60
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This economy is fraudulent, and the gig is almost up.

A country that doesn't make anything anymore can only sell itself so many manicures and cheeseburgers before the money runs out.
Uhyup.
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