Companies Hiring Again - But Not Necessarily Employees or With Benefits
We've had some good news recently, with the country's unemployment rate falling faster than expected.
But these numbers reflect a profound shift in the employer - employee relationship and many of the new jobs are temporary or contingent positions, without benefits.
Professor Charles Handy, in his book The Age of Unreason published in 1989, predicted that early in the next century one-half of the working population would be making a living outside of the traditional corporation.
He goes on to forecast this trend will continue into the future.
Well, the future is now.
A survey by Kelly Services last year found that 44 percent of workers consider themselves free agents, compared with 19 percent in 2006.
The government officially defines temporary workers as those hired by staffing companies to fill short-term positions, which make up about 2 percent of the workforce, but does not track freelance, consultants, or other contract workers.
Another bit of positive information, according to Kelly Services, is that about one-half of temporary jobs become permanent.
Even with the decrease in official unemployment number reported by the Bureau of Labor Statistics (BLS) to 13 million, the real number is over 18.
5 million when you factor in the Labor Force participation rate compared to the working age population, which dropped from 63.
4 percent in 2006 to the current 58.
5 percent.
These additional 5.
5 million people gave up looking and are no longer on unemployment rolls.
There are another 8.
2 million employed art-time for Economic Reasons - meaning companies cut their hours and they cannot find full-time work.
When you add the freelance, temporary, consultant, contingent, part-time, and unemployed to the 19 million sole proprietors it equals over half of the employed population.
What does this mean for the American worker? It means that over one-half (trending upward) won't have full-time jobs and benefits.
It signifies a complete mindset change is needed away from "I'll work hard for a company and they will take care of me.
" Workers are going to have to take care of themselves, their benefits and retirement plans, and be continuously looking for their next gig.
We can take a page out of what the Millennial generation is currently going through.
While the oldest of this group is just hitting 30 years old, they are trending to hold an average of 25 jobs over 50 year careers (yes, they will be working longer) or a new position about every two years.
This compares to 12-15 jobs for Gen Xers and 3-5 for Baby Boomers.
Millennials will have to essentially always be looking for and preparing for their next job - if the trend holds - and so will an ever-increasing percentage of the entire labor force.
How will we prepare for this transformation of the US labor market? Each of us will have to become our own brand and marketed just like a product or company is marketed.
If you aren't a marketer you're going to have to develop that skill.
Fortunately, social media sites like Facebook and LinkedIn have tools to help you gain the exposure you will need.
The majority of workers will be selling themselves and the value-add they can bring to an organization, not as a cog on the wheel as an employee, but a whole additional mechanism to help the company grow and evolve.
It will require each of us to continuous add to our skill set repertoire, to augment our education, and to effectively maintain and use our networks to always know what is available in our field and related fields - to assist and then ask for assistance for ourselves.
It will most likely involve more use of recruiters to help find our next position, so we do not degrade our performance on a current job looking for the next one.
The key is to be proactive.
We know this labor market transition is upon us.
Do not wait until you are unemployed to start evolving to the new job market.
Get a robust network developed and create a social media presence building your brand.
Participate in blogs in your area of expertise, join trade associations related to your occupation, consider additional courses to broaden your skills, and keep an open mind to related fields to which your skill set can contribute.
Even if you are solidly employed by an organization today - anything can happen when a merger, takeover, or acquisition occurs.
Be prepared for the unexpected.
You will create your own job security going forward - not an organization.
But these numbers reflect a profound shift in the employer - employee relationship and many of the new jobs are temporary or contingent positions, without benefits.
Professor Charles Handy, in his book The Age of Unreason published in 1989, predicted that early in the next century one-half of the working population would be making a living outside of the traditional corporation.
He goes on to forecast this trend will continue into the future.
Well, the future is now.
A survey by Kelly Services last year found that 44 percent of workers consider themselves free agents, compared with 19 percent in 2006.
The government officially defines temporary workers as those hired by staffing companies to fill short-term positions, which make up about 2 percent of the workforce, but does not track freelance, consultants, or other contract workers.
Another bit of positive information, according to Kelly Services, is that about one-half of temporary jobs become permanent.
Even with the decrease in official unemployment number reported by the Bureau of Labor Statistics (BLS) to 13 million, the real number is over 18.
5 million when you factor in the Labor Force participation rate compared to the working age population, which dropped from 63.
4 percent in 2006 to the current 58.
5 percent.
These additional 5.
5 million people gave up looking and are no longer on unemployment rolls.
There are another 8.
2 million employed art-time for Economic Reasons - meaning companies cut their hours and they cannot find full-time work.
When you add the freelance, temporary, consultant, contingent, part-time, and unemployed to the 19 million sole proprietors it equals over half of the employed population.
What does this mean for the American worker? It means that over one-half (trending upward) won't have full-time jobs and benefits.
It signifies a complete mindset change is needed away from "I'll work hard for a company and they will take care of me.
" Workers are going to have to take care of themselves, their benefits and retirement plans, and be continuously looking for their next gig.
We can take a page out of what the Millennial generation is currently going through.
While the oldest of this group is just hitting 30 years old, they are trending to hold an average of 25 jobs over 50 year careers (yes, they will be working longer) or a new position about every two years.
This compares to 12-15 jobs for Gen Xers and 3-5 for Baby Boomers.
Millennials will have to essentially always be looking for and preparing for their next job - if the trend holds - and so will an ever-increasing percentage of the entire labor force.
How will we prepare for this transformation of the US labor market? Each of us will have to become our own brand and marketed just like a product or company is marketed.
If you aren't a marketer you're going to have to develop that skill.
Fortunately, social media sites like Facebook and LinkedIn have tools to help you gain the exposure you will need.
The majority of workers will be selling themselves and the value-add they can bring to an organization, not as a cog on the wheel as an employee, but a whole additional mechanism to help the company grow and evolve.
It will require each of us to continuous add to our skill set repertoire, to augment our education, and to effectively maintain and use our networks to always know what is available in our field and related fields - to assist and then ask for assistance for ourselves.
It will most likely involve more use of recruiters to help find our next position, so we do not degrade our performance on a current job looking for the next one.
The key is to be proactive.
We know this labor market transition is upon us.
Do not wait until you are unemployed to start evolving to the new job market.
Get a robust network developed and create a social media presence building your brand.
Participate in blogs in your area of expertise, join trade associations related to your occupation, consider additional courses to broaden your skills, and keep an open mind to related fields to which your skill set can contribute.
Even if you are solidly employed by an organization today - anything can happen when a merger, takeover, or acquisition occurs.
Be prepared for the unexpected.
You will create your own job security going forward - not an organization.
