Karen Rants: Stop saying that there is a war for talent
So the tired old war story continues, as many continue to Dread the upcoming mass exodus of the Baby Boomer. What? I am sorry, are we missing something? The mass exodus really wont’ have an impact? How so?
Well, I decided to try the impossible today, to keep my comments simple, especially for those who just Aren’t getting it.
The Echo Boomers
- The Largest Boom Generation we have in recorded history are now entering the work force. This generation is called the Echo Boomers as they are the offspring and demographic echo of the Baby Boomers
- Yes Folks they have already entered school, graduated, and even working
- This generation is between 1980 – 1990+ and there are close to 90 Million of them. Yes folks that is even more than the Baby boomers – they make up 27.5 percent of the population.
People in the Labor Force
- Baby Boomers cannot afford to retire and over 85 Percent have reported (AARP) that they will be postponing retirement
- Baby Boomers Are expected to ALL retire in the year 2030 – My granddaughter will be in the workplace, and may even have her own child by then! Yes, that Echo Generation will definitely be able to help compensate for sure.
- Let’s go back to that 2030 number. We are talking 22 years from Now/ Wow, by then the advancement in technology seems so amazing, one would even say that people would be living longer, and healthier. This adds to the retirement age, as well as to the population. The US economy has ALWAYS grown faster than it’s workforce.
- But advancement in Technology means that there would also be less people needed for certain jobs (remember the automobile line and machines) , as technology makes it less work for each person
- China and India, two of the most populated countries in the world will continue to have growth, and we shall continue to see many of their citizens emigrate here in the U.S
Economy
- For some time now, for a Very long time actually – the unemployment numbers have been skewered. The figures kept saying unemployment near 4-5 Percent in spite of the continual drop in Payrolls. If one were to look at the Real Numbers, Payroll numbers, we would see that Jobs Per Thousand have actually shown that there were less Americans working than acknowledged. This is Called Long Term Unemployment. The DOL, has taken to call these people discouraged workers. I call them the Forgotten People. In 2006 the Demographics of the long-term unemployed – Over 35+, middle to high income, white collared worker. Today, we are seeing blue collared workers also becoming prevalent in those demographics
Per Businessweek:
If the percentage of Americans participating in the workforce were the same now as it was in 2000, the number officially counted as unemployed would be 9.1 million, rather than 7.1 million. The unemployment rate would be 5.8%, instead of 4.6%. (Sept 2007)
- Ah folks, we are in a recession, and we are Now publicly hearing that there are less jobs in the economy. We have less jobs entering the economy per week (greatly) than we have people entering the economy (per week)
- Outsourcing will continue to happen and with outsourcing comes
- As the economy continues to be threatened, more and more people will work more than one job to help compensate. This is has been a prevalent trend with the last two generations
- If there really was a war for talent, wouldn’t companies have raised wages here in America a long time ago to attract the great talent, instead of outsourcing the work for mediocre labor? See Consumer Reports An Accident Waiting to happen (Outsourcing Raises Air Safety Concerns March 2007)
- We have talented experienced individuals here in America, but, yet, we outsource it for peanuts, and then say we want better education. Sorry, if there were a War for talent, companies would be doing everything in their power to attract that Great Talent. Better wages, paying for education, health care, better retirement. Not.. You get the picture.
- The baby boomer generation is and has been and continues to be the most educated Generation, at 25 Percent. That includes many of the Very Educated Stay at home Moms. Many of the individuals who make up the baby boomers wealthiest are actually NOT College educated as many have thought, and earned their stripes through the road more travelled.
- More Kids today are going to school, but less are graduating. Maybe we need to ease up on this criteria??
- The kids who do graduate are forced to live with mommy and daddy as they can’t afford to pay their education, pay their bills, and they are sure not making the salaries that their parents used to make (adjusted for inflation) – In fact the college kid today is The most indebted generation in modern history. See: “College debts and broken dreams” (MSN Money), The Education-Jobs Gap: Underemployment or Economic Democracy by D. W. Livingstone, Created Unequal: The Crisis in American Pay by James K. Galbraith and the following quote from the NY Times:
Something to chew on – Inflation has been raised more than 2000 Percent (Two thousand) yet, salaries and minimum wages well, can anyone remember when there was last a minimum wage raise? Was that not about 20 years ago nationally? Back in the 70’s one could buy a House on ONE YEARS salary.. today, a husband and Wife can barely make the Down payment for a home; pay for child support; Pay for Education; pay for their own health benefits (companies used to provide that, back in the good old day) and of course put a percentage away for retirement, not to mention emergencies? According to a recent Pew Survey…
…men who were in their thirties in 1974 had median incomes of about $40,000, while men of the same age in 2004 had median incomes of about $35,000 (adjusted for inflation). These data challenge the two-century-old presumption that each successive generation will be better off than the one that came before. The findings rely on new analysis of U.S. Census Bureau data. Is the American Dream Alive and Well?
Education
This is the biggest argument for the labor shortage, but can also be mixed into the other three categories.
In 1976, Richard Freeman wrote a book called “The Overeducated American.” So many Americans had been getting college degrees that the relative wages of white-collar professionals had started to fall. It no longer paid to go to college and, for most of the ’70s, fewer people did. Just so, incomes of the educated began to rise again.
People like Freeman, a labor-market economist, waited for the cycle to turn. They expected that with white-collar types riding high again, more people would stay in school, and incomes at the top would level off once more.
But they never did. Instead, the rich kept getting richer. Across the spectrum of American society, the higher your income category, the more your income continued to grow. And for a quarter-century, albeit with zigs and zags along the way, that rich-get-richer pattern has held. (NY Times)
So here we go again in America – we are Over Educated and Under Employed, with Great Debt, and Not enough jobs to go around. No, there really isn’t a war for talent, but more a WAR FOR EMPLOYMENT!
This is it. Hope it was as interesting for you to read, as it was for me to compile the information.
Karen Mattonen
.
If you enjoyed this post, please consider to leave a comment or subscribe to the feed and get future articles delivered to your feed reader.
Comments
Thanks for writing this Karen. I always appreciate other blogger who add different prospectives on looking at the generations in the work place.
Super analysis. You have totally and completely annihilated that lame argument that most other biz bloggers are wailing about.
I will favorite your site and anytime I read a lame brain blog about the coming labor shortage send them to you.
Here’s some info you might have missed…..
http://www.star-telegram.com/news/story/421119.html
When you think about it in the context of “cleared or clearable” experienced professionals it becomes easier to understand.
John
thanks so much for the great comments. I really need to get an editor, am really quite bad in editing my work. So I doubly appreciate anyone and everyone who does read for the context, and forego my errors.. Greatly appreciate. Smile.
Brilliant article! As a non-native English speaker I will surely forgive you any errors you make 
I’ll share your article on my blog in Europe if you don’t mind.
Today I came accross more DISTURBING information which I just had to input immediately.
there is a funny rumor going around our industry that the Job Market is really strong, and secure.
Funny thing - (not funny haha funny, but more the Sad Reality) - For all of 2007, the economy added 1.3 million new jobs — a million fewer than were added in 2006
On top of that Wages also declined all of 2007 (hourly and weekly)
Yet, companies kept crying oh, it’s so hard to find talent.. Was this because they had openings? Was this because they couldn’t fill Any positions, that there was an increase in unfilled openings, or even an increase in job openings, and they were Actually in pain??? No, to all of those questions!
Here are some Other funny facts regarding those Job Openings — Companies reported a DECREASE in position openings and unfilled positions, and though they are complaining, this is NO Candidate market, but more of a Employer based market for sure. Companies can take their own sweet time deciding whom and when to hire whom they choose.
And the holes that needed to be filled.. were they technology? Or maybe engineering? Maybe Medical, for sure isn’t that not where the shortage is???
Well the reality — Waitresses and bartenders accounted for 304,200, or 21% of the new service jobs last year and 29% of the net new jobs.
There were more jobs for hospital orderlies than for architects and engineers. The ones they claim is SOOOO Hurting from Talent loss – yet, where is this shortage of scientists and engineers –
Waitresses and bartenders accounted for as many of last year’s new jobs as the entirety of professional and business services.
Wholesale and retail trade, transportation, and utilities accounted for 181,000 of 2007’s new jobs.
This industry needs to take notice, because there is a lot of hype of what is, and what isn’t reality, and the biggst reality, companies are Not caring for their employees, as they continue to ask for higher experience and education, but are willing to pay less
Great Piece No Jobs for the New Economy or the Old
http://www.populistamerica.com/no_jobs_for_the_new_economy_or_the_old
Karen Mattonen
[...] out first read this one by The War for Talent by FastCompanyand compare it to this article by Karen M. I don’t know enough to form an opinion on this I will leave that opinion to those who can [...]
I had been feeling, sensing this for some time and your rant is the first place I’ve seen it articulated so beautifully. You Hit The Nail On The Head!
I will be sharing your post to others who give me so much grief when I share the same thoughts.
Thank you for taking the time to document.