This Week's Herman Trend Alert

Harnessing the Power
of the Tides

 

  The Herman Trend Alert

October 2, 2002

Impending Labor Crisis

During the go-go years of the late 1990s, there were many more jobs than people to fill them. Employers were forced into aggressive recruiting in a highly competitive labor market. Workers had many alternatives; they could choose their employers. It was clearly a seller's market for labor.

When the economy slowed, employers cut costs by reducing payroll. Thousands of workers lost their jobs as companies downsized to respond to the drop in demand for their products and services. Workers who were accustomed to the freedom to change jobs for better opportunities found themselves trapped. As a result, they are cocooning, waiting for the economy to grow and new jobs to open.

"Warm chair attrition" is high. Many chairs are now warmed by people who have already moved psychologically. They just show up for work each day out of habit.

Employers have become complacent. With employee turnover so low because of the slow economy, many employers have reduced their efforts to make employees feel valued and appreciated.

All this serenity is about to change. As the economy improves, and the signs are there, more jobs will be created. Jobs that were closed during layoffs and downsizings will open again. Some employers have already started recruiting. As more positions become available, workers will start moving to new employers, leaving gaps that may be difficult to fill. In a relatively short time, many employers will experience serious and dangerous labor shortages.

U. S. Bureau of Labor Statistics projections report that by 2010 (just over seven years from now) we will have 167,754,000 skilled jobs to fill in the United States alone. Other studies from this well-respected government agency forecast that we will only have 157,721,000 people in the workforce in 2010 to fill those jobs. As we interpret these numbers, we're facing a shortage of 10,033,000 workers in about 2700 days. Assuming that five percent of the workforce (7,886,050) holds two jobs, we still have approximately 2,146,950 jobs unfilled. Click here to see the chart.

The shortage of qualified workers is already being felt by employers. It will be more intense by early 2003.


© Copyright 1998- by The Herman Group, Inc. -- reproduction for publication is encouraged, with the following attribution: From "The Herman Trend Alert," by Joyce Gioia, Strategic Business Futurist. 1.336.210.3548 or https://hermangroup.com. To sign up, visit https://HermanTrendAlert.com. The Herman Trend Alert is a trademark of The Herman Group, Inc."

A MESSAGE OF THANKS!
At this season of Thanksgiving in the United States, I wanted to take the opportunity to express my appreciation to you, our valued subscribers for your continued loyalty. It is precisely that loyalty that allows me to come into your lives once a week with our insights and forecasts for the future. Many thanks!

YOUR ANSWER TO RECRUITING THE PEOPLE YOU NEED NOW: BE RECOGNIZED AS AN EMPLOYER OF CHOICE® AWARD WINNER
With the workforce crisis detailed in last week's Herman Trend Alert, you could really use a leg up in competing for top talent. Winning the Employer of Choice® Award could be your competitive edge in this very tight labor market. Celebrate your employee-centered corporate culture! This coveted award is well worth the effort, yet is not easy to achieve. Download the extensive application at EmployerofChoice.com; or for a Word® version, drop a note to Joyce@EmployerOfChoice.com or call Joyce at 1.336.210.3548.

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