The Unemployment Paradox

The Consumer Confidence Index is rising and surveyssupply. To solve this dilemma, employers and
report optimism among business leaders despitegovernments must fund new training programs. The
gloomy labor statistics. Unemployment claims rosestimulus act, unfortunately, provided little funding to
only 365,000 in May and nearly 14 million people wereretrain workers. So, in the mean time, employers will
unemployed. Projections are that unemployment willbe forced to accept imperfect fits to fill vacancies,
peak at 15 million before the recession ends in earlyand the unemployed will have to accept lower pay to
2010. Paradoxically, the labor report also said therestart new careers that lead to grater success.
were roughly three million vacant jobs that employersThese broad shifts in the economy arouse the
want to fill. Sounds like promising news - but it's not.dragons of change - the emotional resistance we feel
Instead, it indicates a basic shift in the economy andwhen we're forced to change. Change is the process
a widening gap between employer needs and workerof letting go of the old and embracing the new. The
skills. People who have lost jobs in shrinking industrieschasm between the old and the new is a chaotic but
like manufacturing, construction, and retail generallycreative period. We struggle to accept that the old is
lack the skills required for open positions in growinggone, but at the same time we're not sure what the
industries like health care, education, greennew will be like. The uncertainty causes some to run
technologies, and government. At the same time, theaway from risky new beginnings and cling to the slim
worst fall in 50 years in real estate values has frozenhope that things could be like they were. To stay on
unemployed workers in place - they can't afford totop in such times, you can't just react to changes.
sell their homes and move to where new jobs areYou must anticipate changes, embrace the realities of
located.the changes you see, and use them to advance your
So far, the unemployed cling to a desperate hopesuccess.
that things will return to "normal." It's hard to acceptToday is the ideal time to hire talent that positions
that the old jobs aren't coming back, and it will takeyour organization for the economic rebound, but you
years to rebuild their savings. For example, many ofmay want to use alternative hiring techniques. For
the 27,000 people laid off when Chrysler enteredexample, hire future employees as part time
bankruptcy won't be rehired when it emerges. Peopleconsultants to minimize compensation costs and
in severely impacted states like Indiana and Michiganverify that they fit your organization. A second idea
are ignoring well-paying jobs in southern states thatis to hire employees with deferred start dates and
are recovering because they are reluctant to movepay them a salary retainer. This technique is
and retrain themselves. Similarly, laid-off Wall Streetparticularly effective with new graduates. A third
workers are grappling with the stark reality that theypossibility is hiring baby-boomers. Many of them have
must change their lifestyle and accept a job thatlong experience and are looking for part time work
pays less. It will probably take several years for thesince their retirement funds have been affected by
realization to sink in that there is an entirely differentthe stock market crash and drop in real estate
"normal."values. Companies that put a hiring freeze in effect
Employers need to change their thinking as well,"until things turn around" run the risk of being forced
recognizing that the "perfect" candidate may notto hire leftovers with weaker qualifications than they
exist. Some jobs in emerging industries require skillswould like. The skills reservoir is as full as it will ever
that salary, no matter how high, will not be sufficientbe - now is the time to get the sweetest water! If
to attract enough qualified candidates until a newyou're unemployed, now is the time to jump into a
generation of workers can be trained. For example,new pool - start a new career, possibly your own
the financial crisis has produced a demand forcompany.
accounting specialties that far exceeds the labor