Business

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

Published

10 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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Libby Schaaf, Associates Stiff Penalties for ‘Serious’ Campaign Violations in 2018, 2020 City Elections

According to the proposed settlement agreements, which are on the agenda for the Monday, Sept. 16 Public Ethics Commission (PEC), Schaaf and many of those with whom she was working, have cooperated with the investigation and have accepted the commission’s findings and penalties. “Respondents knowingly and voluntarily waive all procedural rights under the Oakland City Charter, Oakland Municipal Code, the Public Ethics Commission Complaint Procedures, and all other sources of (applicable) procedural rights,” the settlement agreement said.

Published

4 days ago

September 13, 2024

Oakland Post

Libby Schaaf served as Oakland’s mayor from 2012 to 2020. Courtesy Photo.

Ex-Mayor, Metropolitan Chamber of Commerce Are Not Disputing Findings of Violations

By Ken Epstein

Former Oakland Mayor Libby Schaaf, currently a candidate for state treasurer, faces thousands of dollars in penalties from the City of Oakland Public Ethics Commission for a “pattern” of serious campaign violations in 2018 and 2020 city elections

“Respondents knowingly and voluntarily waive all procedural rights under the Oakland City Charter, Oakland Municipal Code, the Public Ethics Commission Complaint Procedures, and all other sources of (applicable) procedural rights,” the settlement agreement said.

“If respondents fail to comply with the terms of this stipulation, then the commission may reopen this matter and prosecute respondents to the full extent permitted by law,” according to the agreement.

Schaff and co-respondents were involved in three related cases investigated by the PEC:

In the first case, Schaaf in 2018, without publicly revealing her involvement as required by law, working with the Oakland Metropolitan Chamber of Commerce and others, created, lead, and raised funds for a campaign committee called “Oaklanders for Responsible Leadership, Opposing Desley Brooks for Oakland City Council.”

The “respondents,” who were responsible for the violations in this case were: the campaign committee called Oaklanders for Responsible Leadership; Mayor Schaaf; the Oakland Metropolitan Chamber of Commerce; OAKPAC; which is the chamber’s political action committee; Barbara Leslie and Robert Zachary Wasserman, both leaders of the Oakland chamber; and Doug Linney, a campaign consultant who was brought on by Schaaf to organize and lead the campaign to defeat Desley Brooks in her 2018 campaign for reelection.

Linney reported in his interview with the PEC that Schaaf had approached him and said, “Let’s do an Independent Expenditure (IE) campaign against Desley and let me see if I can get some other folks involved to make it happen.”

Linney developed a plan, which hired staff to organize field canvassing and phone banking. He said Schaaf told him the budget should be more than $200,000 because “I think raising $200K shouldn’t be hard and could shoot for more.”

None of the original group, which met weekly, included anyone who lived in District 6, the section of the city that Brooks represented. They waited to start the committee until they could find a District 6 resident willing to be the face of their campaign.

During her tenure, Brooks was instrumental in establishing the city’s Department of Race and Equity.

Among the violations reported by the PEC:

Respondents reported contributions as being received from the chamber’s political action committee, OAKPAC, “rather than the true source of the contributions,” in order to hide the identities of contributors.
Failure to disclose “controlling candidate,” Libby Schaaf, on a mass mailer.
Failing to disclose the controlling candidate, Libby Schaaf, on official campaign filings.
Receiving contributions in amounts over the legal limit. For example, the State Building and Construction Trade Council of California PAC donated $10,000, which is $8,400 over the limit; and Libby Schaaf donated $999, which is $199 over the limit.

Total contributions were $108,435, of which $82,035 was over the limit.

“In this case, Mayor Schaaf and her associates’ action were negligent. All of them were fully aware that Mayor Schaaf and significant participation in the IE campaign against Brooks, including its creation, strategy, and budgeting decisions, and selection of personnel.”

Further, the PEC said, “The respondents’ violations in this case are serious. The strict rules applying to candidate-controlled committees go directly to the very purpose of campaign finance law.”

In her interview with the PEC, Schaaf, who is an attorney, had received incorrect legal advice from Linney, her campaign consultant, that her activities were legally permissible, because she was not the “final decision-maker.”

Total recommended penalties for all those involved in this case were $148,523.

The PEC also found violations and is recommending penalties in two other cases.

The second case involves the Oakland Fund for Measure AA in 2018, which established a parcel tax to fund early childhood initiatives in Oakland. Looking into this case, PEC investigators found that Schaaf used her position as mayor to benefit the campaign, though without revealing her involvement.

A contractor who made a large contribution was Julian Orton of Orton Development, which was in negotiations with the city to redevelop the Henry J. Kaiser Convention Center. Orton donated $100,000

Schaaf, for failing to disclose that the campaign committee was “candidate controlled,” may face a $4,500 penalty. For violating the rule against contractor contributions, the campaign committee and Schaaf face a possible $5,000 penalty.

Orton has agreed to pay a $5,000 penalty.

The third case involved a campaign in 2020, the Committee for an Affordable East Bay, which raised thousands of dollars to support Derrick Johnson’s campaign for Councilmember-at-Large position and to attack the incumbent, Councilmember-at-Large Rebecca Kaplan.

Investigators found that Schaaf was extensively and secretly involved in the work of this committee.

She received a $100,000 donation from Lyft, which had a contract with the city at the time and was therefore legally prohibited. Lyft recently agreed to pay a $50,000 fine.

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Oakland Post: Week of September 11 -17, 2024

The printed Weekly Edition of the Oakland Post: Week of September 11 – 17, 2024

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4 days ago

September 13, 2024

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Google’s New Deal with California Lawmakers and Publishers Will Fund Newsrooms, Explore AI

Gov. Gavin Newsom, California lawmakers and some newspaper publishers last week finalized a $172 million deal with tech giant Google to support local news outlets and artificial intelligence innovation. This deal, the first of its kind in the nation, aims to invest in local journalism statewide over the next five years. However, the initiative is different from a bill proposed by two legislators, news publishers and media employee unions requiring tech giants Google and Meta to split a percentage of ad revenue generated from news stories with publishers and media outlets.

Published

7 days ago

September 11, 2024

Oakland Post

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By Bo Tefu, California Black Media

This deal, the first of its kind in the nation, aims to invest in local journalism statewide over the next five years. However, the initiative is different from a bill proposed by two legislators, news publishers and media employee unions requiring tech giants Google and Meta to split a percentage of ad revenue generated from news stories with publishers and media outlets. Under this new deal, Google will commit $55 million over five years into a new fund administered by the University of California, Berkeley to distribute to local newsrooms. In this partnership, the State is expected to provide $70 over five years toward this initiative. Google also has to pay a lump sum of $10 million annually toward existing grant programs that fund local newsrooms.

The State Legislature and the governor will have to approve the state funds each year. Google has agreed to invest an additional $12.5 million each year in an artificial intelligence program. However, labor advocates are concerned about the threat of job losses as a result of AI being used in newsrooms.

Julie Makinen, board chairperson of the California News Publishers Association, acknowledged that the deal is a sign of progress.

“This is a first step toward what we hope will become a comprehensive program to sustain local news in the long term, and we will push to see it grow in future years,” said Makinen.

However, the deal is “not what we had hoped for when set out, but it is a start and it will begin to provide some help to newsrooms across the state,” she said.

Regina Brown Wilson, Executive Director of California Black Media, said the deal is a commendable first step that beats the alternative: litigation, legislation or Google walking from the deal altogether or getting nothing.

“This kind of public-private partnership is unprecedented. California is leading the way by investing in protecting the press and sustaining quality journalism in our state,” said Brown Wilson. “This fund will help news outlets adapt to a changing landscape and provide some relief. This is especially true for ethnic and community media journalists who have strong connections to their communities.”

Although the state partnered with media outlets and publishers to secure the multi-year deal, unions advocating for media workers argued that the news companies and lawmakers were settling for too little.

Sen. Mike McGuire (D-Healdsburg) proposed a bill earlier this year that aimed to hold tech companies accountable for money they made off news articles. But big tech companies pushed back on bills that tried to force them to share profits with media companies.

McGuire continues to back efforts that require tech companies to pay media outlets to help save jobs in the news industry. He argued that this new deal, “lacks sufficient funding for newspapers and local media, and doesn’t fully address the inequities facing the industry.”