The labor shortage isn’t getting any better. In fact, if you’re hoping for a recession to loosen up potential employees, experts say guess again. Years ago, many industries would secretly wish for downturns in the economy, because it would mean some employees would statistically get laid off, and be available to work at new companies.
“You see it happen where companies relish a downturn, not because they hope bad things happen to people. Quite the contrary, they want to be able to help people find great jobs in their company, when perhaps they need new employees. Because after all, some companies expand during difficult economic times,” said STOKES|HERZOG co-founder Chris Herzog.
It happened in 1981, in 1990, in 2001, and in 2007.
Every single time.
The bottom drops out of the economy, people get laid off, they line up for jobs and companies have their pick. But something quite different is happening now.
The baby boom generation, those born between 1946 and 1964 are retiring at a faster and faster rate. Now, the generation to replace them, the millennials, can’t compare to the sheer numbers of those exiting.
Older workers are creating what’s known as a “silver tsunami.” Millions of older workers retiring, with not enough younger workers to replace them. Herzog added, “These companies don’t have the luxury of waiting for the next recession or downturn, because many of us agree, it won’t help. There will not be enough workers to fill the existing job openings, no matter what the economy in general does.”
Federal Reserve Secretary Powell told reporters last month, “Participants see unemployment remaining low this year and next. Monthly job gains in May were lower than expected, however, and, in light of recent developments, this bears watching. Still, many labor market indicators remain strong. Community, business, and labor leaders all tell us that the prospects for job seekers have seldom been better, and that this is true even for those who have traditionally struggled to find work.”
That’s why it’s critical companies take a more serious and strategic approach to recruiting, hiring and HR marketing. No longer are CEOs and COOs content to let the HR department be a supporting department in the operation. Today, human resources teams and managers who can show their skill at recruiting and marketing to obtain new employees, get budget increases, raises, and a new place at the table of corporate leadership and management.
Sarah Stokes and her husband Chris Herzog, who are both former WEAU television news anchors, started STOKES|HERZOG, an advertising and public relations agency in 2014. The agency assists both local and global clients with all of their corporate business consulting, advertising, public relations, and marketing needs including video production, website management, graphic design, social media management, and overall marketing.