Chris Wellington “The Recruiting Guy”, President, The Wellington Group

Released just over three hours ago and already a lot of web-chatter, news announcements, emails and calls to my office about the latest job numbers from the US Department of Labor. The summary report can be found at Department of Labor New Release.

So what is all the hype about? 331,000 reported job losses for the month of July. Now that may seem like a very high number but its more “normal” than the losses from November 08 to April of this year, which averaged almost twice as many at 645,000 job losses per month. Total unemployment was down by.1 percent to 9.4%, not a significant change. The sector which had job gains continues to be Health Care with an increase of 20,000 jobs.

Since my ear is constantly to the ground for the staffing and recruiting industry, I had to take notice and point out the impact of the past 10 months. The temporary help market has lost 844,000 jobs while the entire business services sector has been impacted by 1.5 million jobs lost. The release notes this decline has lessened Substantially over the past three months. These numbers reflect the contract, contract to hire and consultant employment areas and not so much the direct hire or executive search services.

While this appears to be good news, the job losses we are still seeing in the staffing and recruitment industry to me is a key indicator that the US is yet to hit the “bottom” of the job loss portion of this economic turndown. In studying trending data for the last 25 years, until we begin to see a rise in staffing numbers we have yet to make a full turn in the positive. With staffing companies (IT, Engineering, Administrative, Day Labor, Etc) still laying off internal staff I don’t see a lot of confidence or stability in overall employment for the US.  

So, is it good news that perhaps the US is slowing on the job loss front? Unemployment seems to have stabilized for now right at 9.5%, not at the 10% plus which so many news media and talk show host predicated. Unfortunately I foresee these numbers rising again for a short period of time this fall as government and state budgets get approved, many of which will call for job cuts.

Chris

Chris Wellington “The Recruiting Guy”, President, The Wellington Group

OK I SAID! Now that I got that off my chest let me point you to the root of my angst. Recruiting, like any other profession, has it s own social media / networking sites where we all get to share insight, tips, tricks and yes even humor. One such site is ere.net. The post getting all the attention today was “Bullet Point to the Head” by Matt Charney.

Matt’s post was very well written and very much on target. Just look below the article at all the comments. Everything from “I can relate” to “no, that is not me.” In my years of living as a professional recruiter I have seen his comments in-action more times than not. Too much perceived work on a recruiter or even HR’s desk so they have to fly through resumes as fast as they can, learning tricks to skim and weed-out in what they feel is an expeditious manner. Why, because they are lazy.

Don’t believe me, ok. But here is a true fact. Most large HR groups, Staffing Firms and Professional Search Groups receive so much resume traffic they have to hire staff just to filter and scan or purchase software to totally remove the human component. I can remember weeks at Manpower where we might receive 5,000 applicants. In addition to this the recruiting publications are now telling HR and Talent Manager they NEED to automate. Check out the latest Talent Management article on “Make HR Happy.”

On top of this, many of today’s recruiting demographic has the technology / MTV curse of “if it’s not instant it’s not worth my time.” So, they expect every candidate to have a resume laid out in a similar fashion with all the goodies at scan level in 2.3 seconds. The trouble is that many professionals are great at their jobs but not with working on their resume (see my previous post on 8 Musts for an Effective Resume). Lazy recruiters are grab-and-go, great recruiters are diamond miners, polishing off the mud to find the sparkle below…many times at their own expense.

What is the solution? I think the bump we hit in the economy helped create some of the cure, causing recruiters and HR to transform their skills or try performing it from the unemployment line. The other solution, better management of both corporate and third-party recruitment practices. Accountability to the primary goal, recruitment and review with the intention of uncovering the best talent for the right job.

Chris

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