Low Unemployment? Shortage of Qualified Workers? No Way!!!

The economy has been growing at a slow and steady pace for years. Official unemployment figures have dropped dramatically. Unemployment in many states are in the range of 5% and some economists are stating we are at full employment. Some employers are complaining that they can't find qualified applicants.

1. Ok, ok hold on a minute. If all the above is true why has the labor force participation dropped so dramatically? In 2016 the labor participation rate was the lowest seen in the last decade at 62.8%. The number of workers in their prime working years who are not working and are not actively seeking work has not been this high since the 1970's. Many of these people have given up looking. Many would like to be working and they don't count as being unemployed. We are talking about millions of possible job candidates who don't show up in our unemployment statistics.


2. What about the millions who are working part-time and would like to be working full-time? There are an estimated 6 million part-time workers who work for little to no benefits and are paid low wages who have not been able to make the jump to full time.  They don't count as unemployed either.


3. How about older workers? Every year thousands and thousands of older workers are pushed out of jobs in favor of younger workers. Many of these employees in their 50's and 60's did nothing wrong and contributed daily to business operations. Some trained the people who replaced them and are experts with technology even though not being up to date is often an excuse used for their dismissal. Their departure starts with work being reassigned to new and younger staff and eventually the employer makes them so miserable they quit or retire if they can. Again, we are talking about millions who would like to be working, but are also not counted in those low unemployment statistics. The most dedicated and hard workers end up as part of a low labor participation rate statistic. Thanks for your decades of service. Sadly these same ex-workers apply, apply, and apply for positions and the only response they receive are form letters saying they don't meet the employers current needs or qualifications. Thanks for applying, but we see from your experience that you are not in your 20's or 30's so we won't be pursuing your application. 

News stories claiming full employment based on the unemployment rate are missing the bigger story that millions have given up and have been pushed to the sidelines. Human resource staff and recruiters suggesting they can't find qualified workers are leaving out the bigger story that they don't train new hires anymore. HR is baffled by the concept of a senior engineer training a new college engineering graduate. Apprenticeship programs? Oh my goodness, we don't do that!

Statistics can read anyway you would like them to read. It's not fake news or a fake story. One statistic paints part of the picture. It's really too bad for millions who would like to work that HR professionals, corporations and recruiters don't see the picture at all.