Only partially tracked in government statistics, underemployment common in highly educated populations.
By: Carrie Miller
Less than a year ago, Tim Hendricks was a vice president and stock trader 21 years into a career at Merrill Lynch in downtown Chicago. These days Hendricks is selling refrigerators and air conditioners at Abt Electronics in Glenview – and happy to have the job.
He’s one of the countless underemployed workers created by the current recession – countless as in no one is keeping track of them.
The U.S. Bureau of Labor Statistics tracks one segment of the underemployed: those who are working part time but would rather be working full-time.
Involuntary part-timers
In addition to the 9.3 percent unemployed the U.S. reported in the second quarter, another 5.6 percent are what the bureau’s alternative labor statistics report calls “part time for economic reasons.”
In Illinois the unemployment rate was 9.4 percent with another 6.1 percent involuntarily working part time hours – which generally means no benefits like health insurance and sick leave.
Like the the other north Chicago suburbs, Glenview’s unemployment rate is substantially lower because its workforce tends to be more highly educated and highly skilled. But for those same reasons, it is especially susceptible to the other type of underemployment.
Government statistics don’t keep count of people who, like Hendricks, are working full-time jobs below their skill and experience levels. Sometimes called “mal-employment” by economists, this type of underemployment is hard to gauge without surveys because these workers aren’t applying for government benefits.
“This question has been around a while but no one’s measuring it,” said Paul LaPorte, who works in the BLS office of economic analysis and information in Chicago.
“That’s the true definition of underemployment,” LaPorte said, “underutilizing your skills; you have qualifications yet somehow through no fault of your own you got stuck doing this other job.”
Funding your job search
Jan Leahy sees both types of underemployment every day as director of the Career Resource Center in Lake Forest, a non-profit that primarily helps professionals who are looking for work.
In this tough economy, it’s “not uncommon” to see people with graduate degrees or decades of professional experience taking retail sales or other service jobs to bring in some income while they continue a job search, Leahy said.
Job seekers who have put a lot of effort into sending out resumes and making connections have to decide whether to accept lesser offers in their fields: shorter term assignments or contract work, Leahy said.
“It’s a difficult choice because it does take them out of the market and there can be a loss of momentum with their job search,” she said.
Short-term jobs can open doors
Taking a contract job was the right decision for Pam Siudyla of Highland Park, who just completed a 10-month assignment in the purchasing department of Rust-Oleum in Vernon Hills that was initially supposed to last three months. Siudyla said she had been unemployed nearly 6 months and took the job because she “needed to do something.” Now she’s on the job hunt again.
While she was at Rust-Oleum, she learned how to use the business management software SAP and made some valuable connections.
“It worked out well because I was able to update my computer skills, earn a little money and keep my experience current,” Siudyla said.
Another “underemployed” worker with a unique perspective on the job market is Pat McGarrigle of Lake Forest, who has 30 years experience with hiring and firing other people in human resources.
He’s now working three days per week as HR director for the 200 employees at a Joliet company that recycles cooking oil into animal feed and biodiesel. The 62-year-old spends the rest of his time looking for a full-time job where he can finish out his career.
He has been doing shorter-term human resources gigs since last June, when the Des Plaines packaging company where he had been HR director nearly 10 years was bought out by a rival and he was let go.
Like Siudyla, he said taking contract work has been good experience, teaching him a few new tricks and allowing him to share his own wealth of knowledge.
“I like knowing I may be able to help the company improve their processes and to have that be appreciated,” he said.
“It makes you feel good at a time when you really need a ego boost.”
Working three days per week also provides some “respite and reprieve” from the job search grind, McGarrigle said.
“It can get rather frustrating doing that day in and day out,” he said.
Unexpected rewards
Taking jobs that don’t necessarily use all of your skill set can be extremely rewarding, said Leahy, the Career Resources Center director.
She recalled one professional worker who decided to get a retail job while he was looking for career employment and, since he was an avid fisherman, applied at a Bass Pro Shop and ended up loving the job.
Likewise, Hendricks said he wasn’t sure what to expect going from selling an abstract idea like stocks to selling refrigerators and washers and dryers at Abt.
Now he loves it – and the Glenview family-owned business where he works, its “Fortune 500” level benefits, onsite fitness center and his fellow employees.
“I’m not going anywhere,” he said. “This is my career now.”
by: Doug Stites
In a recent education and economy survey conducted by Kaplan, “tough times drive adults to return to the classroom.”
Peter Smith, senior vice president for academic strategies and development at Kaplan Higher Education, found that 83 percent of U.S. adults think the nation is falling behind other countries economically.
Seventy-one percent believe the nation can improve its standing if more people earn college degrees.
We continue to hear complaints about skills gaps when it comes to hiring. What is more concerning, though, is the lack of career management.
The best way to manage your career is to first prioritize your education.
A job in any given industry may not be the same type of job it was five or even 10 years ago. While you may have experience within a particular industry, the skills required for that job may have changed in recent years.
Technology advances and we are left behind when we don’t change with them.
Skill sets require upgrades and continuous management, which is why we must constantly be in the know about current job and skill requirements.
The Education and Economy survey indicated 91 percent of U.S. adults “feel finishing a degree, seeking a higher degree or continuing education makes someone more attractive to potential employers.”
Control the controllables. This means that you can put your future in your own hands by taking the steps needed to have a career and promising future.
While there are a lot of things you cannot control, your career does not have to be one of them. If you really want to be out in the job field, contributing to your local economy, then you will do everything possible to obtain these goals.
Part of the necessity in achieving this is furthering your education.
With a lower supply and higher demand when it comes to the workforce, competition is unavoidable. An education could be that one determining factor that helps you land a job. A certification in a particular skill or an advanced degree will boost your candidacy, allowing you to stand out among other potential employees.
A bachelor’s degree can earn you 90 percent more than a high school graduate, according to the U.S. Census Bureau.
Take control of your own future by advancing your education level.
A stable lifestyle starts with a valued education.
By: Robert Samuelson
One puzzle of this somber economy is the existence of unfilled jobs in the midst of mass unemployment. You might think (I did) that with almost 14 million Americans unemployed — and nearly half those for more than six months — that companies could fill almost any opening quickly. Not so. Somehow, there’s a mismatch between idle workers and open jobs. Economists call this “structural unemployment.”
Just how many jobs are affected is unclear; there are no definitive statistics. Economist Harry Holzer of Georgetown University thinks the unemployment rate might be closer to 8 percent than today’s 9.1 percent if most of these jobs were filled. That implies up to 1.5 million more jobs. Economist Prakash Loungani of the International Monetary Fund estimates that 25 percent of unemployment is structural; that’s more than 3 million jobs. A recent survey of 2,000 firms by the McKinsey Global Institute, a research group, found that 40 percent had positions open at least six months because they couldn’t find suitable candidates.
Let’s acknowledge two realities. First, though structural joblessness is important, the main cause of high unemployment remains the deep slump. In the recession, jobs dropped 20 percent in construction, 15 percent in manufacturing and 7 percent in retailing. Only a stronger economy can remedy this unemployment.
Second, a big economy like ours always has some vacancies. People quit or get fired. Hiring procedures grind slowly. Some highly specialized jobs are inherently hard to fill: say, a transportation engineer fluent in both Chinese and English (a real-life example).
Still, the job mismatch hobbles recovery and bodes ill. The harder it is for workers to find jobs, the longer they stay unemployed — and this, in turn, worsens their prospects. “Long-term unemployment sends a negative signal to employers: What’s wrong with this person?” says Holzer. Some jobs lost in the recession and the associated skills won’t return. “Workers’ networks [contacts] atrophy,” he adds. “Their skills look more obsolete.”
As more workers become less employable, some economists are raising their estimates of “full employment” — the unemployment rate consistent with stable inflation. It could be 6 percent compared with 5 percent before the recession, says Mark Zandi of Moody’s Analytics. Trying to push unemployment below 6 percent with easy credit would risk higher inflation.
Carl Camden, head of the temporary-employment company Kelly Services, says that skill shortages span a wide array of jobs, from electricians to CAD/CAM operators (computer-aided design and manufacturing) to PhD scientists for clinical drug tests.
“You can’t find engineers to take jobs in many cities,” says Camden. “We have three jobs for every candidate.”
In any dynamic economy, constant changes in technologies, products and companies naturally create gaps between skills available and skills wanted. But today’s gaps seem to transcend this. A survey for the National Association of Manufacturers in 2009, near the recession’s nadir, found that a third of companies still faced shortages. These were largest for engineers and scientists and among aerospace, defense and biotechnology firms.
Theories abound as to what’s gone wrong. For skilled blue-collar jobs, high schools have de-emphasized vocational training, community colleges often aren’t well-connected to local job markets and union apprenticeship programs have withered, says Anthony Carnevale, director of Georgetown’s Center on Education and the Workforce. Another theory is that Americans are less willing to move to take jobs. The McKinsey study reports that, in the 1950s, one in five Americans moved every year; now it’s one in 10. “Work is more mobile than workers,” says Camden.
Companies traditionally provided much training, but that may also have changed. Loyalties have weakened. Companies are more willing to fire; workers are more willing to jump ship. Training may seem a poor investment because workers won’t stay long enough to earn a return. In the McKinsey survey, companies denied cutting training budgets. But Carnevale and others think the training has altered. Before, firms provided more basic training in business or technology skills; now, firms expect workers to come with these skills and focus training on firm-specific practices and systems.
“Employers are looking for people with proven skills in the right fields,” says the McKinsey study. “The number one cause for difficulty in filling positions (cited by 45 percent of companies) is lack of sufficient experience.”
So it’s a Catch-22: You can’t get hired unless you have experience; but you can’t get experience unless you’re hired. With technology changing rapidly, workers need to know more, even as their skills-support systems weaken. There is no instant cure for today’s job mismatch, but it might ease if America’s largest companies were a little bolder. Surely many of them — enjoying strong profits — could make a small gamble that, by providing more training for workers, they might actually do themselves and the country some good.
By: Toni Duval
During this time of economic uncertainty for many Americans, it seems that the people who are coping have a variety of skills on which to base their career development. Many people may not agree with what I’m about to say, but in many fields, being a generalist pays off better than being a specialist.
Women seem to come hardwired this way. As mothers, wives and girlfriends, women are inherently innate generalists. Women today are educated, diverse and fearless. However, I think that many men could benefit from this work style as well.
People who capitalize on this strength gain the respect of their peers. They become resourceful, respectful and reliable. Those who manage others with a continuous learning attitude will encourage their team members to learn and develop. They have high expectations and encourage people to meet them.
No matter the job, no matter the industry or business, after you learn your job and you do it well, learn the other jobs, too. The more valuable you are, the harder you are to replace. In this and every economy, being invaluable is a good thing to be. Let’s look at some tips to help you get the diversity you are seeking.
First, learn your job. Before you can start to add value, learn the job you were hired to do. Avoid getting ahead of yourself. I often meet people who are new in their job and in a few cases, their enthusiasm to impress others with their knowledge turns others off. Their intent is good, but the impact may be damaging. Remember, you may only get one chance to make a good first impression on your new co-workers. Ask questions in a way that fits in with your new role. Don’t be shy about saying you don’t fully comprehend something. But once you’ve mastered the primary tasks of your job, start looking for ways to improve.
Second, create a development plan. Schedule time to discuss your development with your manager. Create an informal plan based on your view of the job and the level of skill. Ask for your manager’s input as well as your trainer or other employees you work with. When you sit for your first performance review, incorporate your development plan into your goals and objectives by formalizing the plan with your manager.
Third, build your internal and external network. Never underestimate the power of developing relationships with your co-workers. When I first went to work for a large corporate training department, I accepted a project that allowed me to meet with other trainers throughout the company and share expertise. I was able to call on those same people later in my career when I needed help or guidance. In addition, you should become a member of a trade association or other organizations that lets you benchmark your talents with those outside your organization. This also is a way to keep up your knowledge of industry trends and concerns. My trade association has a wonderful monthly magazine that I use regularly.
Fourth, look for opportunities to work with people from other parts of the organization. When someone gets promoted, send them a congratulations email. Take time to know the people who are upstream and downstream from your part of the business. Try to get feedback from others about your effectiveness. Look for ways to make work easier for others.
Last, look for and use resources that are made available to you by your company. Most mid- to large-sized companies offer training workshops and other learning events. Take advantage of such opportunities. Read the company newsletters. Join the bowling league (if you bowl). Ask questions at the all-employee meeting.
By: Dan Schawbel
It used to be that if you had the right technical skills, you could count on a job. Then, as companies received numerous resumes for fewer open positions, they started looking at “soft skills” in addition to “hard skills.”
After the economy tanked, and with the rise of social networking, we are seeing a new type of skill emerge based on a professional’s online influence. If you want to compete in the new global economy, you will have to constantly and persistently develop each of these skill sets.
Soft skills
Employers are looking for workers who are great communicators, team players and skillful leaders. They also want workers can be flexible, adapt to change and work independently. A recent study by EMC Research shows that 75 percent of employers think that your writing ability is valuable and 79 percent value your analytical skills.
Hard skills
These skills fulfill job descriptions — and without them, your resume won’t even be looked at. To gain these skills, you can take classes or online tutorials. While some might have natural talents, most people require practice in order to master their trade.
Online influence
The number of followers and friends you have on your social networks carries a lot of weight. Employers want to hire people who are already established and can help them communicate. Companies understand that those with larger networks are more productive and can generate new business, recruit top talent and market their brand.