Continuing Economic Uncertainty Exacerbates Talent Mismatches
Continuing Economic Uncertainty Exacerbates Talent Mismatches as Employers Seek High Specificity of Skills ManpowerGroup Sees U.S. Employers Still Hesitant to Hire Amid Tepid Demand as Unemployment Rises Slightly
ManpowerGroup (NYSE: MAN), the world leader in innovative workforce solutions, says the prolonged recovery in the U.S. means employers who want to hire are still seeking a hard-to-find "perfect fit," as the U.S. Bureau of Labor Statistics shows the overall May unemployment rate increased slightly from April to 9.1 percent and 54,000 private sector jobs were created during the month.
"American employers remain extremely cautious with their hiring plans, and those with open positions are willing to wait for the perfect match," said Jonas Prising, ManpowerGroup President of the Americas. "These employers are stretching their existing workforces until demand for goods and services increases. However, as demand improves, firms will not be able to be as selective, which will lead to an employability crisis when they cannot find the candidates they need among available workers."
Of the U.S. employers surveyed in ManpowerGroup's 2011 Talent Shortage Survey, 52 percent report difficulty in finding the right talent, up from 14 percent in 2010. This is the highest U.S. percentage reported in the annual survey's six-year history. With unemployment remaining high, there is an over-supply of available workers but an under-supply of skilled talent. The number of discouraged workers fell by 261,000 from the year prior, suggesting more job seekers are confident that they can find work.
ManpowerGroup's new Fresh Perspectives Paper, "'Manufacturing' Talent for the Human Age," makes recommendations for how employers should tackle the scarcity of talent in the face of an abundance of available workers. Today, a holistic workforce strategy must account for external talent supply factors such as demographic shifts, the rise of emerging markets and rapidly evolving technology as well as internal demand.
"As the economy continues to improve, employers will need to 'manufacture' the talent they need to drive business growth if they cannot find the skills they need in the marketplace," said Jeffrey A. Joerres, ManpowerGroup Chairman and CEO. "Employers who do not think long-term will be frustrated trying to manufacture talent on a just-in-time basis."
Later this month, ManpowerGroup will release its forward-looking Manpower Employment Outlook Survey of hiring intentions among nearly 64,000 employers across 39 countries and territories, including the U.S. The survey gauges whether employers intend to increase or decrease the number of employees in their workforce during the next quarter.