With 15 million unemployed, thousands of middle class jobs go unfilled
Filed under: Economy
Times are tough for the 15.1 million people looking for work. Many are likely to see their benefits end before they find another job. And yet there are lots of $60,000-a-year jobs that employers can't fill. What gives? Unfortunately people who got thrown out of jobs like assembling cars and trucks can't get new ones because they often don't have the right skills.
It is not exactly clear how many of those $60,000 jobs are out there. According to the latest Job Openings and Labor Turnover Summary from the Bureau of Labor Statistics, there were 2.4 million open jobs in July. Of those, 422,000 were in professional and business services and another 534,000 were in the education and health services categories. My guess is that most of those jobs pay at least $60,000 representing about 40 percent of the unfilled positions.
What kinds of unfilled jobs pay $60,000? There's a long list: nurses, pharmacists, MRI technicians, energy researchers, accountants, health care workers, software sales representatives, actuaries, data analysts, physical therapists, electrical engineers, plant scientists and geotechnical engineers.
With the ratio of unemployed to open jobs topping 6:1 (as I wrote back in July, when there were 14.5 million unemployed and 2.4 million open jobs), the need for work is great. But then you have the problem of an unemployed quality control (QC) engineer for auto supplier Dura Automotive Systems Inc. in Mancelona, MI who told the AP he made about $75,000. When he applies for QC jobs in windmill blade or solar panel factories, he never hears back.
There is no easy answer. It's obvious that the people who lose their jobs ought to get training for the ones that go begging, but when you have no job, eating and paying the rent come first. Where will such unemployed workers find the extra money to get the training they need to take those open positions?
And then there's the problem of figuring out what kind of work they really like doing and have a talent to perform. For instance, while a person who turned a wrench on an auto assembly line might enjoy the pay that comes from nursing, it is unclear how many of those workers would have a knack for nursing.
With companies taking their time to hire just the right person, the odds that an employer will take a chance on a person who did well in a different industry are pretty low. Right now, it looks like there's no private sector solution.
The U.S. may need to step in to provide funding for the kind of retraining that's needed to fill those empty jobs. But with 15.1 million out of work, even that would not be enough.
Peter Cohan is a management consultant, Babson professor and author of eight books including, You Can't Order Change. Follow him on Twitter.
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Reader Comments (Page 1 of 2)
10-05-2009 @ 4:36PM
Robert Bennett said...
What happened to all those government job retraining projects we seem to hear so much of just before each election?
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10-07-2009 @ 8:53AM
TEvil said...
BUT the recession is ENDING YEAHHHHHHHHHHHH!
I hope americans are in store for some VERY bad times ahead for all. None of these people can afford any kind of training and as one of the ONLY industrial nations without free college for citizens were F-U-C-.... well you get my point.
TURNIP PICKING GLOVES!
get your turnip pickin gloves hea!
and watch as GM falls flat on its face again takin gour tax dollars and more employees with it.
We will be owned by another country very soon.
www.brokintongue.com
10-05-2009 @ 4:51PM
Doug Meyer said...
Interesting... Both my son and daughter-in-law are unemployed professionals. Oddly, many on line resume' submissions are "rejected" within hours of submission. Obviously, they had never been read by a human.
Another "show stopper" has been the immediate request for a social security number. If a number is not provided, the application is not accepted. There is an extreme reluctance to provide that information when one is uncertain of the legitimacy of the employer website. How is one to know if someone isn't simply 'phishing' ?
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10-19-2009 @ 1:33AM
Will Stambaugh said...
Your son and daughter-in-law aren't the only ones in that boat. I am, too. Read this: http://iamthewill.wordpress.com/2009/10/18/19/
10-05-2009 @ 5:38PM
Mark said...
We have offered jobs to qualified personnel ranging from $10/hr to $50k a year, comparable to what the applicants had previously worked for, and are having difficult time filling positions. The dominant excuse for not accepting the job is they make nearly as much on unemployment and don't have to work. With unemployment benefits extended to 53 weeks the unemployment rate will not come down real soon.
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10-05-2009 @ 5:46PM
kevin said...
There's a lot of song and dance that goes along with employment. But, it all boils down to supply an demand. If they needed someone bad enough, they'd train them. And if someone needs a job bad enough, they'll work for less. Not complicated.
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10-07-2009 @ 1:20PM
Rob said...
It's not only a person willing to work for less... I have applied for several jobs knowing that the pay would be less than I have previously had. But prospective employers see my resume and think I am going to want more money. I am willing to work for what the job is paying, they just don't call back - too much experience. Some of us just have too much training and experience.
10-05-2009 @ 7:42PM
bob said...
Some of the nation's best have lost there jobs. Formal education doesn't mean productivity. " Don't let school interfere with your education", Mark Twain. K Mart , when it was at the top of its game, didn't have one college grad. on its board of directors. Once the "educated" came the company went down. Find a good personel manager and he'll separate the" chaff from the wheat".
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10-06-2009 @ 3:28AM
Jim Jones said...
Sounds more like the economy is just trimming out the jobs that weren't needed..
Jim -- Love on the go.
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10-06-2009 @ 7:19AM
timothy said...
The Industrial age jobs are gone for good. The country that makes a product most efficiently will always 'corner' the market. American production workers did not see the tsunami coming. Most do not see it until their plant closes due to 'foreign competition'. A few of the 'planners' had a little money set aside for retraining while drawing unemployment. Its a free country...you can retrain or go on welfare...take your pick !!!!!
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10-06-2009 @ 1:22PM
Harry said...
Dear Timothy,
Please see my comment further down the list. I am the Chief Engineer here of a heavy industry fabricator. We cannot find enough welders! I have developed new patents in energy technologies as well. There's some hope on the horizon! We have orders straight through 2010 for mining equipment. The Soda Ash (Wyoming) business is still growing well.
10-06-2009 @ 10:20AM
Glenn said...
There is NO SHORTAGE of nurses. I know numerous nurse friends that can not find jobs unless they want to work 24 hours per week or 2 12 hour shifts ! This way the hospitals don't have to pay benefits at the same rate if at all ! The reported lack of nurses is a PR ploy by the health insurers in an attempt to import foreign workers who will work for lower wages. Enough already our nurses should not have to work for third world wages !
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10-06-2009 @ 1:02PM
Rob said...
My wife has 10 years experience as a respiratory therapist working in the CTICU at one of the most well respected Children's Hospitals in the world.
She is trying to re-enter the workforce after 3 years sabbatical and hasn't been able to find work ANYWHERE, for months. This is in Los Angeles.
It's bad when you have a skillset in the medical field and can't find a job at the beginning of flu season.
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10-06-2009 @ 1:11PM
Justin said...
We are having a hard time finding sales reps that have average between $65K-$95K the first year.
http://www.paycomonline.com/Career_Opportunities.asp
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10-06-2009 @ 1:22PM
Harry said...
Isn't what you're offering very misleading?
10-06-2009 @ 1:13PM
Harry said...
We are having a lot of trouble finding welders. We are booked right through 2010 with orders for processing and overland conveying equipment for mining applications. I am the Chief Engineer here, we are in Utah, Tooele I don't know if I can give the name of our company her though. Utah's unemployment is still very low. We need you folks out here!
Of course out of those jobs in big corporations they say they can't fill one factor is that those corporations use computer pre-screening that eliminates anybody with a poor credit rating. Since everybody out of a job, a mortgage and with everything else would not even get past the first blush so there's less chance every day of finding people who will be hired by those big corporate HR clowns.
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10-06-2009 @ 1:18PM
Jeff said...
I'm a creative professional that's been searching for a job since January. I've had almost zero response to my applications sent out between several cities. Now I've decided to return to school so that I can retrain myself for management positions that seem to be a bit more available. Due to budget cutbacks, California's state universities are not currently accepting second baccalaureate candidates. With that option seemingly impossible, I find myself up that famous off-colored creek without any way of escape.
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10-06-2009 @ 1:22PM
Harry said...
It may seem silly but go to a community college and become a welder.
10-06-2009 @ 6:44PM
dave said...
I hate to sound like a cynic...but have you ever CALLED the HR department or the hiring manager?
I ask only because I have posted recently on moster for 60-100k+ jobs and i got 80-90 resumes in for the positions.
My first issue is there are so many you must setup basic criteria to reject.
1) are their career objectives defined, are they in alignment to my company?
2) is their resume complete, does it meet my posted minimum criteria - aka experience and/or degree history
3) have they had previous experience that is relevant to my industry.
you would be surprised how often a career objective was left generic, or worse completely off base.
it is also very apparent in intro letters when people did not research my firm properly before applying.
most shockingly of all, i received maybe 3 phone calls from desperate prospects, but none from extremely qualified prospects.
I guess my point is, if you are applying, laziness and a lack of attention to detail is apparent. If you are 1 of 100, try and help me bring that ratio down?
10-06-2009 @ 1:23PM
Matt said...
It is good to see that there are actually open jobs out there. Unfortunately, as always is the case, employers with open jobs are not willing to take risks on people that can potentially fill the roles. This is the same case when the unemployment rate is 5%. Corporate America does not know how to hire. On a market like today's they even feel they will find the PERFECT person, but don't want to put in the effort. Sounds like a Catch 22 for me.
Yes it would be great if the government could provide training. Why doesn't the private sector? A company will spend two months looking for the PERFECT candidate and still be unsuccessful. Why not hire a potentially perfect candidate and train that person. That candidate at the end of the day will be much more loyal to their employer in the long run as well. Risk is what this country needs. What have we got to lose?
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