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How High Job Security Is Impacting Our Labor Market

AdobeStock 132595491
AdobeStock 132595491

According to the U.S. Labor Department, our job market is promising right now … if you already have a job.

Companies have fought for ages for qualified candidates, but now more than ever they’re desperate to retain them. In fact, firing in the U.S. economy is at the lowest point it’s been in the past 50 years.

This is great news for people who have experience and qualifications for well-paying jobs, but bad news for a continuously increasing, long-term unemployed population.

The market

For employers, qualified candidates in the workforce are hard to find. Companies will fight vigorously to find and keep their employees who have the skills that fit their needs. Finding new employees and having to build their skills from the ground up can be a hassle. So, it looks as though more companies are viewing this hassle as unnecessary for the time being, as they’re trying to retain their old workforce for as long as they can.

In contrast, a substantial portion of our unemployed Americans have been jobless for months on end. The number of Americans that have been unemployed for 27 weeks or more was 35% more last month than it was during the beginning of the recession in 2007.

Qualified candidates who fall out of work are much more likely to be sucked right back into the workforce within five weeks. Past that point, it becomes increasingly tougher for workers to break back into the workforce. As a result, long-term unemployment has proven itself as a tough issue to crack, especially in a world where layoffs (and, therefore, job openings) are scarce.

Improved job security

Whether in regard to investments or new hires, businesses are currently less prone to taking risks in the U.S. economy. As a result, job security is at a newfound high.

It’s interesting to see the dichotomy between millennials’ tendency for job hopping and recent developments toward job security. As aging employees inch further toward retirement, it’s only a matter of time before employers have to come to terms with the millennial workforce. But a risk-averse economy shows that job security is a dominating force for the time being.

Why quality is hard to find

A large population of our workforce is steadily aging. This section of the workforce that edges ever closer to retirement holds workers who have built the skills needed to accomplish their jobs over the course of their careers. With that in mind, it makes sense why companies wouldn’t want to let their qualified workers go.

The demand for skills has been commonplace in our job market as of late. However, this data reveals that the issue of candidates lacking skills is one that exists not just with new college graduates. This is an issue that is relevant across the board within our job market.

Takeaway

Job security is great for people who already have jobs, but it can make things tougher for workers starting in or returning to the workforce. Even though our labor market has seen solid hiring and low layoffs in the past few months, increased long-term unemployment, aging workers and a skills gap are issues that haven’t been addressed yet.

For right now, our economy is in pretty good shape. Let’s hope it stays that way.

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Header image: Adobe Stock

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