Business

Even as U.S. Job Market Picks Up, Unemployed Face Frustration

Published

9 years ago

February 7, 2015

In this Friday, Jan. 23, 2015 photo, Debbie Ramsawak, Director of Operations at the Hilton Bentley Miami Beach hotel, center, seated, talks with job applicant Zikey Cook, 24, left, during a job fair at the Hospitality Institute, in Miami. (AP Photo/Lynne Sladky)

Christopher S. Rugaber, ASSOCIATED PRESS

WASHINGTON (AP) — The job market remains a frustrating place for America’s 9 million unemployed — perhaps more so as hiring has accelerated along with job postings.

The pace of job growth over the past three months was the fastest in 17 years. The gains spanned nearly every industry, and some employers have finally had to dangle higher pay to attract or retain top talent.

And yet millions of job seekers still can’t find work. Some businesses remain slow to fill their openings, awaiting the ideal candidate. Many job seekers lack the skills employers require.

The plight of the unemployed also reflects an economic reality: Even in the best times, the number of job seekers is typically twice the number of job openings.

The January jobs report that the government issued Friday pointed to another factor, too: As hiring strengthens, more people typically start looking for jobs. As the number of job seekers grows, so does competition for work.

The number of openings has reached nearly 5 million, the most since 2001. Yet that’s barely more than half the number of people the government counts as unemployed.

“There’s always going to be a set of job vacancies, and there are always going to be a set of people transitioning from unemployment to work,” said Tara Sinclair, an economics professor at George Washington University. “The transition isn’t instantaneous.”

For many, the transition can be maddeningly slow. Complaints abound about online job sites that seem to function more as black holes than as gateways to employment. Applicants can’t get past online portals to explain gaps in their resumes. Multiple interviews and other steps — even for low-paying jobs — can prolong the process.

Carlie Kozlowich, 23, had three interviews last year with a marketing company for a job she was told would involve “travel” and “events.” Only after accepting the job did she learn it involved selling goods at a booth in a Costco. Having amassed roughly $50,000 in debt to earn a college degree, she felt she had to turn it down.

“Three interviews just to say, ‘Would you like to try a pierogi today?'” she said.

Steven Davis, an economist at the University of Chicago, calculates that it took employers an average of 25.6 working days to fill a job in November, the latest period for which data are available. That nearly matched July’s figure of 26, the longest in the 14 years that the government has gathered the data Davis uses.

An extended hiring period can in some ways be a positive sign: It suggests that companies are having a harder time finding workers because the economy has strengthened. The number of unemployed peaked at 15.4 million in October 2009, just after the recession ended.

Still, the fact that it takes companies so long to fill vacancies, even with 9 million people unemployed, suggests that more discouraging factors may be at play.

Some companies that are seeking high-skilled workers in fields like information technology and advanced manufacturing complain about a shortage of qualified candidates. Some recruiters and online job sites describe “skills mismatches.”

Paul D’Arcy, senior vice president at the job listings website Indeed.com, says lower-skilled jobs generally receive a flood of resumes, while higher-skilled positions attract far fewer.

Jobs in management, computers and math and architecture and engineering far outnumber job seekers in those fields, according to Indeed’s data.

That doesn’t sit well with Bill Gahan, 51, who has sought work for nearly a year after moving to Salt Lake City. Gahan worked in manufacturing and logistics for 29 years, including as a vice president for logistics at a manufacturer of hardware and software for visually impaired people.

Told that some experts think many of the unemployed lack the right skills, Gahan says, “I want to have a conversation with whoever is saying that.”

Increasingly, many economists agree with Gahan. Though skill shortages exist in some highly technical positions, if shortages of qualified workers were pervasive, employers would likely be offering higher pay. Despite a sharp gain in January, average pay still hasn’t risen much.

Many employers also remain highly selective, perhaps assuming there are still legions of unemployed to choose from. They may be right: There are 6.8 million part-time workers who would prefer full-time jobs — 50 percent more than in 2007, before the recession began.

The recession also left some companies reluctant to make permanent hires. They have turned instead to temporary and contract workers.

All that has left job seekers like Stephen Jones in a bind. A lawyer, Jones hasn’t found work since moving to Windermere, Florida, more than a year ago. Besides applying for positions as a lawyer, Jones has lowered his sights and sought legal assistant and paralegal jobs. Having sent out 200-300 resumes, he’s heard back once or twice.

“What do I do?” asked Jones, 32. “I’m overqualified for some jobs, and I’m underqualified for the jobs that I want to have.”

Many companies that want to hire don’t see the hurry.

Explorys, a health care data provider in Cleveland, plans to add 80 people to its 142-person staff this year, mostly in data analysis. The company uses a database to help hospitals manage and anticipate patients’ needs.

Cleveland is home to several major health care employers and research universities, so Explorys typically has “lots of good candidates” for jobs, says CEO Steve McHale, and tries to identify those who fit its culture and values.

“We probably say ‘no’ more than other companies,” he said.

Geography can pose a hurdle for some companies that want to hire.

Digi-Key, an online seller of electrical components, added 521 jobs last year as sales grew, raising its workforce to 3,300. Yet it’s located in Thief River Falls, Minnesota, a town of 8,500 an hour from the Canadian border.

It has offered relocation bonuses and arranged bus service to nearby cities to find applicants. But Rick Trontvet, vice president for human resources, worries that those measures won’t be enough as the company grows.

“We have so many jobs and so few people to fill them,” Trontvet says.

____

Contact Chris Rugaber on Twitter at http://Twitter.com/ChrisRugaber.

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Oakland Post: Week of April 24 – 30, 2024

The printed Weekly Edition of the Oakland Post: Week of April 24 – 30, 2024

Published

6 days ago

April 26, 2024

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State Controller Malia Cohen Keynote Speaker at S.F. Wealth Conference

California State Controller Malia Cohen delivered the keynote speech to over 50 business women at the Black Wealth Brunch held on March 28 at the War Memorial and Performing Arts Center at 301 Van Ness Ave. in San Francisco. The Enterprising Women Networking SF Chapter of the American Business Women’s Association (ABWA) hosted the Green Room event to launch its platform designed to close the racial wealth gap in Black and Brown communities.

Published

2 weeks ago

April 20, 2024

Oakland Post

American Business Women’s Association Vice President Velma Landers, left, with California State Controller Malia Cohen (center), and ABWA President LaRonda Smith at the Enterprising Women Networking SF Chapter of the ABWA at the Black Wealth Brunch.

By Carla Thomas

The Enterprising Women Networking SF Chapter of the American Business Women’s Association (ABWA) hosted the Green Room event to launch its platform designed to close the racial wealth gap in Black and Brown communities.

“Our goal is to educate Black and Brown families in the masses about financial wellness, wealth building, and how to protect and preserve wealth,” said ABWA San Francisco Chapter President LaRonda Smith.

ABWA’s mission is to bring together businesswomen of diverse occupations and provide opportunities for them to help themselves and others grow personally and professionally through leadership, education, networking support, and national recognition.

“This day is about recognizing influential women, hearing from an accomplished woman as our keynote speaker and allowing women to come together as powerful people,” said ABWA SF Chapter Vice President Velma Landers.

More than 60 attendees dined on the culinary delights of Chef Sharon Lee of The Spot catering, which included a full soul food brunch of skewered shrimp, chicken, blackened salmon, and mac and cheese.

Cohen discussed the many economic disparities women and people of color face. From pay equity to financial literacy, Cohen shared not only statistics, but was excited about a new solution in motion which entailed partnering with Californians for Financial Education.

“I want everyone to reach their full potential,” she said. “Just a few weeks ago in Sacramento, I partnered with an organization, Californians for Financial Education.

“We gathered 990 signatures and submitted it to the [California] Secretary of State to get an initiative on the ballot that guarantees personal finance courses for every public school kid in the state of California.

“Every California student deserves an equal opportunity to learn about filing taxes, interest rates, budgets, and understanding the impact of credit scores. The way we begin to do that is to teach it,” Cohen said.

By equipping students with information, Cohen hopes to close the financial wealth gap, and give everyone an opportunity to reach their full financial potential. “They have to first be equipped with the information and education is the key. Then all we need are opportunities to step into spaces and places of power.”

Cohen went on to share that in her own upbringing, she was not guided on financial principles that could jump start her finances. “Communities of color don’t have the same information and I don’t know about you, but I did not grow up listening to my parents discussing their assets, their investments, and diversifying their portfolio. This is the kind of nomenclature and language we are trying to introduce to our future generations so we can pivot from a life of poverty so we can pivot away and never return to poverty.”

Cohen urged audience members to pass the initiative on the November 2024 ballot.

“When we come together as women, uplift women, and support women, we all win. By networking and learning together, we can continue to build generational wealth,” said Landers. “Passing a powerful initiative will ensure the next generation of California students will be empowered to make more informed financial decisions, decisions that will last them a lifetime.”

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Business

Black Business Summit Focuses on Equity, Access and Data

The California African American Chamber of Commerce hosted its second annual “State of the California African American Economy Summit,” with the aim of bolstering Black economic influence through education and fellowship. Held Jan. 24 to Jan. 25 at the Westin Los Angeles Airport Hotel, the convention brought together some of the most influential Black business leaders, policy makers and economic thinkers in the state. The discussions focused on a wide range of economic topics pertinent to California’s African American business community, including policy, government contracts, and equity, and more.

Published

2 weeks ago

April 20, 2024

Oakland Post

Toks Omishakin, Secretary of the California State Transportation Agency (CALSTA), answers questions from concerned entrepreneurs frustrated with a lack of follow-up from the state. January 24, 2024 at the Westin Los Angeles Airport Hotel, Lost Angeles, Calif. Photo by Solomon O. Smith

By Solomon O. Smith, California Black Media

The California African American Chamber of Commerce hosted its second annual “State of the California African American Economy Summit,” with the aim of bolstering Black economic influence through education and fellowship.

Held Jan. 24 to Jan. 25 at the Westin Los Angeles Airport Hotel, the convention brought together some of the most influential Black business leaders, policy makers and economic thinkers in the state. The discussions focused on a wide range of economic topics pertinent to California’s African American business community, including policy, government contracts, and equity, and more.

Toks Omishakin, Secretary of the California State Transportation Agency (CALSTA) was a guest at the event. He told attendees about his department’s efforts to increase access for Black business owners.

“One thing I’m taking away from this for sure is we’re going to have to do a better job of connecting through your chambers of all these opportunities of billions of dollars that are coming down the pike. I’m honestly disappointed that people don’t know, so we’ll do better,” said Omishakin.

Lueathel Seawood, the president of the African American Chamber of Commerce of San Joaquin County, expressed frustration with obtaining federal contracts for small businesses, and completing the process. She observed that once a small business was certified as DBE, a Disadvantaged Business Enterprises, there was little help getting to the next step.

Omishakin admitted there is more work to be done to help them complete the process and include them in upcoming projects. However, the high-speed rail system expansion by the California High-Speed Rail Authority has set a goal of 30% participation from small businesses — only 10 percent is set aside for DBE.

The importance of Diversity, Equity and Inclusion (DEI) in economics was reinforced during the “State of the California Economy” talk led by author and economist Julianne Malveaux, and Anthony Asadullah Samad, Executive Director of the Mervyn Dymally African American Political and Economic Institute (MDAAPEI) at California State University, Dominguez Hills.

Assaults on DEI disproportionately affect women of color and Black women, according to Malveaux. When asked what role the loss of DEI might serve in economics, she suggested a more sinister purpose.

“The genesis of all this is anti-blackness. So, your question about how this fits into the economy is economic exclusion, that essentially has been promoted as public policy,” said Malveaux.

The most anticipated speaker at the event was Janice Bryant Howroyd known affectionately to her peers as “JBH.” She is one of the first Black women to run and own a multi-billion-dollar company. Her company ActOne Group, is one of the largest, and most recognized, hiring, staffing and human resources firms in the world. She is the author of “Acting Up” and has a profile on Forbes.

Chairman of the board of directors of the California African American Chamber of Commerce, Timothy Alan Simon, a lawyer and the first Black Appointments Secretary in the Office of the Governor of California, moderated. They discussed the state of Black entrepreneurship in the country and Howroyd gave advice to other business owners.

“We look to inspire and educate,” said Howroyd. “Inspiration is great but when I’ve got people’s attention, I want to teach them something.”