According to an article in the Los Angeles Times, economic recovery may not mean a resuscitation of the job market. Because the economy starts to roll forward, it doesn’t necessarily mean employers will start hiring again.
Historically, the economy can be on the rebound for months, but the job losses may still be on the increase. There is a definite gap between the employment market and the economic boost. Then there is the fact that some jobs have been eliminated and will never return. This is due to at least several reasons. For one thing the jobs that were eliminated were for obsolete services on in industries undergoing dramatic changes. The recessions served as a reason, an excuse, if you will, to downsize and now once the employees have been laid off, the jobs themselves can be eliminated altogether.
In the second greatest instance, the surviving employees from any downsizing have picked up the load from the laid off employees. If the work place is functioning adequately, then the laid off employees may be viewed by the employer as overage or even dead wood. Too much staff for too few duties. What with the expense of background checks, retraining employees, and the salaries themselves, some employers may delay or even put off altogether rehiring new employees. Considering that most businesses have taken a hit in this recent recession, it would stand to reason they have a lot of revenue to earn. Cutting employment expenses will lower expenses, allowing for greater revenue.
Finally, consumer spending might not rebound with parts of the economy. The scarcity of credit and the lack of freewheeling spending on the part of the consumer may impede the economic rebound on the retail level and in other segments. Working people have learned to save and not to worry about keeping up with the Jones’. That combined with the money they do earn may prevent the alleged good old days of consumerism from returning anytime soon. People who are being recruited and who are going back to work will probably be doing so for less money than they have made in the past. This is a rude awakening, but a new reality. When you are paying cash and not spending above your head, then things sure ain’t what they used to be.
The good news in the employment market is that the green industries, the healthcare industries, and even the education segment should be robust and hiring. How many laid off workers can be absorbed into these industries remains to be seen. Retraining and more education may be necessary to re-purpose part of our workforce. And this may take awhile.
