Economists project that we need approximately 165,000 jobs created every month to keep the unemployment rate stable. In May there were more than 165K jobs created, but the rate went up. Some months there are less and the rate goes down.
But as one friend put it, “If I’m out of a job,
the unemployment rate is 100%.”
And that’s the real unemployment rate.
There’s a saying that if you’re out of a job it’s a recession, but if I’m out of a job it’s a depression. The bottom line is that unemployment is personal.
The May unemployment numbers came out on Friday. 175,000 jobs were created, slightly better than projected. The unemployment rate crept up from 7.5% to 7.6%.
We need a steady 225K jobs a month for six months to a year to start to make a dent. But even if hiring was steadily 50,000+ over what we need to maintain the rate, that would reduce the number of unemployed people by less than a million. It’s almost like the rate doesn’t mean anything anymore.
There are still almost 12 million people out there who are under or unemployed. Not 12 million unemployed — 12 million individuals who don’t have a job and want one. It doesn’t help to brand people with a label because lately it seems that “unemployed” quickly translates to “unemployable.”
Companies from Apple to Zappos have come up with creative strategies to find people and get them back to work. Einstein allegedly said, “We cannot solve our problems with the same level of thinking that created them.” We need to identify not just best practices, but next practices. The next big idea to get hiring going. Companies must realize that they can no longer improve their bottom line by simply cutting headcount. The key to sustainable success is getting the right people in the right jobs. Then we’ll be on our way.
I’d love to hear what creative strategies you’re implementing or trying to use at your company.
Only the best
Ron