Commentary: With Employees Still Scarce, Employers Look to Differentiate Themselves
Date Posted: January 31, 2020
Posted In: Ideas, Workforce,
From St. Louis Business Journal: by Hart Nelson
For the past 11 years, St. Louis Community College surveyed hundreds of regional employers to better understand the trends that shape our workforce. As we ramp up our 2020 employer survey — this year focusing on STEM careers — we have been thinking about the issues that will impact an evolving workforce. While some trends will continue, our working environment will be pushed in new directions by technology and companies trying to create competitive advantage.
Here are our six predictions for the coming year:
1. Unemployment stays extremely low. In the St. Louis region, the rate was 3.1% as of November 2019 with the St. Louis Federal Reserve forecasting a minuscule 0.05% increase by year-end and only 0.2% by 2022. That means employers are going to continue to struggle finding qualified employees, something clearly reflected in our latest employer survey. A number of experts such as Daniel Zhao, senior economist at job site Glassdoor, predict that hiring is going to be more difficult in 2020 than it was in 2019. As we highlighted in our 2019 State of the St. Louis Workforce report, employers must better understand and connect with job seekers being left behind in the tight employment market, such as justice-involved individuals, the disability community, and young African American men.
2. Four years is still too long (for many). The newest generation entering the workforce saw their parents struggle to make ends meet during the Great Recession and know that the good times won’t last forever. What some see as generational impatience, we see as pragmatism. A four-year degree doesn’t guarantee a good job and often leads to horrendous levels of student debt. In increasing numbers, millennials and Generation Z are flocking to focused, accelerated training programs that train them for in-demand, well-paying jobs in a matter of weeks.