On September 20, 2010, the National Bureau of Economic Research (NBER) concluded that the current recessionary cycle that began in December 2007 ended in June 2009. The Great Recession, as analysts call it, was the deepest and longest of any recession since World War II. Thus, it's no surprise that unemployment has become a major economic problem as the jobless recovery wears on. So when are jobs coming back?
Signs of Hope in the Job Market
In recent days, a ray of hope has shined upon the heavily burdened labor market. Recruiters are beginning to speak not of layoffs but recovery. In a recent conversation with a recruiter for San Ramon, California based The Creative Group (a division of Robert Half International), a glimmer of hope emerged when discussing the new wave of senior level positions coming into the job market. "The reason you see this happening," said the recruiter, "is because those senior level positions cut during the recession are beginning to come back."
During any recessionary period, the ax spares nobody. The first to feel the brunt are entry to mid-level workers, followed by middle management and then senior management. As the economy recovers, companies need to rehire senior managers to begin rebuilding their teams. After senior level management is established, then the hiring of middle managers and entry and mid-level workers can begin in earnest.
One must also factor in timing. During a recession, companies lay off workers until their staff is at the bare minimum in order to keep work flowing, refusing to hire new workers. This is only a temporary measure since in any given company growth is a key measure of success. Because the recession ended in June 2009, there's reason for hope that employers will begin hiring more workers to grow their businesses. In short, the layoffs have ended, and now it's time for recovery.
What Job Seekers Should Do Now
With increased competition for every available position, today's job seeker needs to be more aggressive and persistent in the career search than ever before. This means constantly reviewing and updating the resume as necessary; tailoring the resume and cover letter for each position applied for; looking for employment in varying places (e.g., newspapers, online, journals, through recruiter websites); and last but not least, aggressively networking on social sites, Linkedin, and in the real world to find job leads.
According to recruiters, employers are looking primarily for current and specific skills. One may ask how to gain these skills if out of work for six months or longer; the typical chicken in the egg scenario encountered after college graduation, only this time it's not age-selective. Experts say that one year or even two is not going to kill a person's chances for gainful employment, but anything more and the person may face salary cuts and a return to entry to mid-level work.
Going back to school for retraining may be a wise option for those who have been out of work for a longer period of time. Now is a perfect time to pause and sharpen the skill set so as to be ready once the economy starts adding jobs. This may mean getting a college degree, Master's, certification, or learning an entirely new set of skills. Though starting a totally new career may mean entry-level pay once the economy improves, the point is to update skills in order to increase chances of getting hired.
Despite positive signs that the overall economy is improving and jobs are coming back, the waters are still murky and the word on Wall Street is still that of "cautious optimism." Yet given the fact that senior level jobs are beginning to come back with middle management and entry to mid-level positions not too far behind, and the simple economic fact that companies must at some point invest in new employees to grow and prosper, the economy seems poised to begin hiring once again.
Daniel Gansle - Daniel J. Gansle is the author of 2012: Day of Reckoning, graduate of Anthropological Studies and expert in ancient Mayan culture.
