Tuesday, November 26, 2013

The Qualified Employee Shortage Myth

How many resumes did you send out but got no response? How many times did you heard company representatives interviewed on CNBC, Fox Business or Bloomberg complain that there are not enough qualified workers, yet you wonder what happened to all the techies that were laid-off when the dot-com bubble burst? You know you are more than qualified for the positions to which you apply, but you hear nothing?

Companies continue to advertise jobs and you continue to apply to these jobs but still receive no response. What's worse is you have accounts at Linked-In, Career Builder, Simply Hired, Monster, etc., but most of the ideal jobs they match you with are at the opposite end of the country, if not outside a reasonable commute radius, while the lowest paid jobs are close. Why is that do you think?

Besides the jobs boards being vehicles for expensive questionable online college degree mills, it's easy to assume that the only audiences are the advertisers, unemployed and the employers, but this is not necessarily the case. There is another audience that is even more important than the advertisers. The jobs boards don't just make money on sideline advertising on their websites, the companies are using the jobs boards as a means of advertising.

While this seems like a strategy for cheap advertising, the unemployed audience is not necessarily motivated to spend money because they may not have it. Logically it doesn't make much sense, unless you include another, much more important audience to the mix: Company shareholders who need to be convinced that their company is growing, and by seeing a large number of jobs advertised by their investment, assume that everything is going well and they don't have to sell off their stock before it crashes.

The unemployment rate is shrinking because people who have been unemployed too long are losing their benefits, not because they are finding jobs. Meanwhile, companies are advertising jobs like there is an employee shortage, not because there is a shortage of qualified employees, but because companies are getting so desperate to maintain the illusion of solvency for their shareholders that they advertised jobs but never interview for those jobs.