According to a recent Labor Department report, the negative economic outlook many have reported may not be quite so accurate.
In a recent historic turn, the gap between unemployed workers and job openings is wider than ever.
Interestingly, it favors job seekers, with a significantly higher number of job openings than unemployed workers. This is the largest gap of its kind.
Rather than the standard employment issue– in which workers have difficulty finding employment– this change indicates that, instead, employers are having difficulty hiring sufficient employees.
And the difference is huge.
Between the end of March and the end of April, the number of Americans seeking work dropped from 6.211 million to 5.824 million.
However, we can’t say the same for the number of unfilled jobs.
By the end of April, this number remained close to the March figure, at about 7.449 million.
Broken down, the difference is quite significant: there are 1.625 million more job openings than there are unemployed Americans. This record-breaking figure is higher than any other recorded stat, since the department began logging this data in 2000.
The massive difference between these two figures speaks volumes about the implication on the American economy. While paying fewer salaries decreases overhead costs, it can also limit the amount of work that employers can handle, and the quality, too.
While the number of available job openings is still high, these numbers may taper off in the near future. In fact, they already have. Over the past few months, job openings reached a peak in November, at 7.626 million.
While this growth has to an extent, reached a plateau, some experts continue to have a generally positive outlook regarding the future. Nick Bunker, an economist at Indeed Hiring Lab, is one of them.
“Labor demand is still strong,” Bunker said in an interview with The Wall Street Journal,”but it’s not just as strong or as fast as it was in a hot 2018.”
Employee quit rates in April were the highest they have been since the recession, at 2.3%. Many of the employees considered “unemployed” fall into this category– which is a strong indication of their confidence in future job prospects.
This labor shortage problem isn’t just affecting Wall Street and in Silicon valley, though.
According to MarketWatch, 86% of small business owners have tried, many unsuccessfully, to hire new employees too. The unique problem that these employers are facing, though, is finding people qualified to help.
According to the National Federation of Independent Business, 24% of small business owners claim that finding the right talent to propel their organization to the next level is their biggest challenge.
Without the ability to find qualified applicants, small businesses cannot provide the same coveted quality work that many of their customers came to appreciate.
With the market booming, people are more eager than ever to have much-needed work done on their homes. Between bathroom renovations, kitchen redesigns and patio construction, business is better than ever for construction companies.
But many construction company owners are having difficulty meeting this demand head-on. According to a survey taken by the Associated General Contractors of America, 79% of construction firms are planning to hire new employees in 2019. While this bodes well for growth potential, nearly the same amount are facing difficulty in finding the qualified workers they need.
In April of this year, there were 404,000 vacancies in the construction industry– a massive year-over-year increase from 2018, during which there were 150,000 open positions.
In a time when finding the right permanent replacement– who could conceivably be sitting in the office for the next 20 years– is difficult, many business owners are considering alternatives.
One popular option is hiring remote workers. Whether these workers are hired on a full- or part-time basis to work in a remote location, or on an as-needed freelance capacity, hiring remote workers is common. By removing the geographical limitations and expanding the pool of candidates, employers are more likely to find a suitable candidate.
Thanks to innovations in the services industry, business owners can already run a successful operation without relying on a full team. Fully automated payroll solutions keep costs and time at bay by providing a simple, user-friendly and web-based portal. The best part: utilizing this software costs significantly less than yearly bookkeeper salaries.
As a business owner, you should never make the mistake of hiring candidates who aren’t a good fit for your team. To take the next leap, you need employees with the right skill sets, experience and perspective. Higher expenses should never be the factor that holds you back from realizing the potential for growth. At National, we live to help business owners realize their potential for growth by providing the right financing options.
A working capital loan can cover the discrepancy between the cash you have on hand to pay employees, and what you need to finance more experienced workers. You won’t have to wait around, either; with alternative financing, you can access these funds in days, rather than weeks or months.
To get started, simply give us a call at (888) 488-GROW, or fill out a 60-second application!
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