The Most Recent Trends in Employment
From the Employment Roundtable

A t its September 2002 meeting, members of The Employment Roundtable began with a discussion of the recent trends in the labor market.  Members always feel free to speak their minds since comments are never attributed to any single individual. The Employment Roundtable includes representatives from business, think tanks, and government, so the remarks are worth noting:

· People are worried and unsure about their positions. This can be attributed to the economic slowdown and the decreased demand for labor. Workers are just happy to have jobs at all.

· Many companies want employees to be internally mobile and to be responsible for their own internal moves. This helps reduce firings as some departments shrink while others may experience growth.

· There is a trend to give employees more information so that they can self-manage all that has to do with their careers. This includes retirement rules, education and training, investments in pensions and so forth. This is partly in reaction to recent scandals in which employees did not diversify their retirement funds and lost significant amounts of money through corporate scandal.

· The market seems particularly difficult for seniors. Though perhaps not as bad as the 1987to1992 slowdown, some report experiencing discrimination and having longer job searches.

· Employers should realize that with today’s high turnover rates, they normally don’t get more than five or six years’ service from a given individual in any case.

· Globalization is here to stay as companies move work and products in and out of the United States and other countries.

More companies want employees to be internally mobile and responsible for their own internal moves.

· The weakness of the Internet for job searches is becoming apparent. Employers report receiving far too many applications (which are easily sent!) via the Internet. The Internet is best seen as a research tool for job search. Job hunters are expected to know more about the companies at interviews.

· The old “war for talent” (in the time of the labor shortage) has been replaced with a “war for customers” as companies desperately seek new business. 

· It is generally believed that investment banking, along with other financial industries, will bounce back strongly as the economy improves and we move into the next business cycle.

The above nine observations capture much (though certainly not all!) of what is happening today in the labor market.  Although we are not enjoying a very high demand for labor, the experts tell us that labor shortages are likely to reappear in the intermediate term future.

Based on these observations job seekers and those with jobs must work hard to prove their value. They must avoid “skills obsolescence;” they must be flexible; make good use of information; stay current on the uses of the Internet; and they must have current résumés and back-up plans in case of a job loss or extended search. 

To be recommended today:
· an honest and competent assessment of ones skills and value in the market,

· research into companies and potential employers,

· keeping “in touch” with the market,

· and ongoing education and skill development.

Small group career counseling can help with issues of assessment, and keeping in touch. Much also hinges on individual effort. 

Members of
The Employment Roundtable

Stephen Atamanchuk, VP, Resource Planning and Development, Sithe Energies
Richard Bayer, Ph.D., Chief Operating Officer, The Five O’Clock Club 
Stuart Brody, Senior Counsel, Labor Attorney, Gibney, Anthony &Flaherty 
Jean Broom (Co-Chair), SVP, Human Resources & General Affairs, Itochu International, Inc.
Michel Franck, AIA, Principal,
 Owen and Mandolfo, Inc.
Gayle George, VP, Human Resources,
 Fried, Frank, Harris, Shriver & Jacobson 
Diane Kenney, SVP, Human Resources, Random House Publishing 
Martin Kohli, Senior Economist, U.S. Bureau of Labor Statistics
George Lumsby, Managing Director, Boyden Global Executive Search
Patrick Oden, Managing Advisor, Healthcare
Alan Richter (Co-Chair),
 Founding Partner, QED Consulting 
Wendy Alfus Rothman, Managing Partner, The Wenroth Group
Marilyn Shea, Regional Administrator, 
 US DOL; Employment & Training Administration 
Frank Thoelen (Co-Chair),
 CFO, JAD Corp of America 
Kate Wendleton,
 President, The Five O’Clock Club 
David Madison, Consultant to Roundtable,
 The Five O’Clock Club