Wages and Hiring Out of Deep Freeze
US companies that implemented hiring and wage freezes during the recession are finally starting to thaw, according to a survey by HR consulting firm Watson Wyatt. Of the employers surveyed, 54 percent that froze salaries plan to reinstate them within the next six months, and 49 percent that implemented hiring freezes plan to start recruiting again in the next six months. While employers’ confidence is bolstered by the economic recovery seen so far, almost 20 percent of those surveyed anticipate more layoffs over the next year.
Despite Record Unemployment, Jobs Hard to Fill
Fifteen million jobseekers outnumber available openings by six to one, but employers are still unable to find qualified people for high-paying careers. Jobs such as accountants, healthcare workers, software sales reps, actuaries, data analysts, physical therapists and electrical engineers are proving hard to fill. More specialized fields such as biotech plant specialists and geotechnical engineers are an even bigger struggle. According to economists, the growing disparity between available work and qualified applicants is likely to persist even as the economy strengthens and adds more jobs. The widening gap between the unemployed and the requirements of current job openings has been aggravated by the speed of the job market decline: A net 7.6 million jobs have vanished nationwide since the recession began nearly two years ago. Also contributing to the problem is the longer amount of time employers are taking to assess applicants and make hiring decisions, due in part to the growing number of applications from unqualified workers. Many jobseekers are trying to transition into new industries to fill the vacuum, but it can take a year or more to gain the education and training needed to make a switch. As a result, many jobs paying $100,000 or more have gone begging.
Small Business Sees Hiring on Horizon
With three out of five small businesses anticipating growth in 2010, many expect to resume hiring next year. According to a recent survey by finance/tax software company Intuit Inc, 44 percent of small business owners anticipate adding staff over the next 12 months. The majority of owners also believe that benefits are integral to attracting new hires, although many are finding them difficult to afford. Half of the small business owners said they will look for candidates with a broader skill set, preferring a ‘people person’ or ‘jack of all trades’ over a ‘creative genius’ or ‘mathematical wizard.’
Solar Training Funds Heat Up
The US Dept of Energy awarded $3.5 million to the California Solar Training Partnership to fund development of a regional resource and training center, enabling the state to start building a highly capable clean-energy workforce. The training center will be one of nine in the nationwide Installer Instructor Training Network, providing professional development and curricular resources for high schools, community colleges, and Regional Occupational Programs. The CA Solar Training Partnership is a joint effort of the Energy Commission, CA Community Colleges, the International Brotherhood of Electrical Workers, and the CA Center for Sustainable Energy.
On the Job Front
NATIONWIDE – Video-game retailer GameStop Corp plans to increase its workforce by 46 percent, hiring 15,000 part-time seasonal workers for its 4300 GameStop stores in the US, including over 100 locations in Northern CA. Applicants must be 16 or older, with working knowledge of video games and gaming equipment. Apply online at careers.gamestop.com/Careers. . . US Airways Group announced it is cutting 1000 jobs, in addition to reducing flights and dropping a number of destinations. The layoffs will occur through the first half of 2010, impacting 200 pilots, 150 flight attendants and 600 service/ramp workers. American Airlines Inc also announced layoffs of as many as 700 employees in several locations, including San Jose and San Francisco, due to reduced flight schedules. Management and union positions will be eliminated to downsize line operations, and other employees could be affected as well.
DAVIS – About $70 million in federal stimulus funds has enabled UC Davis to create 250 new positions to support research in medicine, basic sciences and engineering. The university has hired 53 employees so far, ranging from lab technicians to professors.
MODESTO – Goodwill Industries received $1.8 million in bonds from the California Infrastructure and Economic Development Bank to pay off the loan on its new Thrift Store which opened on October 10, employing 18 workers. Earnings from the store will fund job-training programs for San Joaquin Valley residents. Last year, the agency helped about 4700 local residents. Goodwill currently employs more than 275 San Joaquin Valley workers.
RICHMOND – The Port of Richmond is constructing a new facility to accommodate the arrival of 145,000 American Honda automobiles annually for the next 18 years. The new facility will employ 200.
SACRAMENTO – The Effort community health clinic has received a $1-million grant from Sutter Health to fund medical and mental-health visits for low-income patients in its ten area locations, The Effort plans to hire additional staff, including several psychiatrists.
SALINAS – Electric car manufacturer Green Vehicles is moving assembly operations to the former Firestone Tire and Rubber factory, and expects to be up to speed by early 2010, hiring 15 employees to assemble its three models of electric-powered vehicles. More employment opportunities may follow from related parts suppliers.
SANTA CLARA – England-based Phyworks Ltd, a high-performance analog and mixed-signal communications IC company is hiring for positions in its new office, which will house marketing, sales and application engineering functions. Jobseekers can apply at 5201 Great America Parkway, Suite 455 Santa Clara, CA 95054; (408) 216-8793 or online at http://www.phyworks-ic.com/job.
TRACY – Grocery retailer Raley’s Inc will open its first store here on November 4, with a staff of 120 workers.
Mixed Signals on Recession’s End
Based on the conventional definition of recession ("two or more consecutive quarters of negative economic growth"), the 3.5 percent boost in America’s Gross Domestic Product announced by the Bureau of Economic Analysis for the third quarter seems to validate economists’ declarations that the recession officially ended in June or July. However, the National Bureau of Economic Research, a private group of economists charged with dating the start and end of downturns, takes a more refined view. Taking into consideration not only the GDP, but also employment levels, real personal income, industrial production, and wholesale/retail sales, NBER puts the start of the recession at December 2007, but has not yet declared an end. According to James K. Galbraith, economist at the University of Texas in Austin, "A recession technically lasts during negative quarters. But that doesn’t mean you’re back to prosperity once you have positive growth. You’re back to prosperity when the unemployment rate is back around four percent." And that, he added, could take years.