Thursday, August 28, 2008

Report: Job market equally tough for employees, employers

Pacific Business News (Honolulu)

As competition intensifies among technology and financial services to recruit skilled workers, some companies are trying to retain older workers to make up for the shortage, according to a national survey.

According to the 2008 employment and growth report by Robert Half International and CareerBuilder.com, employees and employers are reporting equal challenges in the job market.

A dual hiring environment seems to be taking shape, says Max Messmer, chairman and CEO of Robert Half International. Job seekers in some fields are competing aggressively for open positions, giving employers the edge in those segments of the hiring market. At the same time, however, companies continue to face a shortage of highly skilled professionals in fields such as technology and accounting. These in-demand workers may not be willing to leave secure positions unless firms extend very attractive job offers.

Although the national jobless rate reached a four-year high in July, nearly 60 percent of hiring managers say the shortage of qualified workers is more acute, up from 52 percent in 2007, while six out of 10 employers report that about 25 percent of applicants contacting them for skilled jobs are not qualified.

Complicating the task of finding qualified talent are spiraling energy costs. Twenty-nine percent of managers said rising gas prices and commuting expenses negatively impacts their ability to attract skilled candidates, who may want to limit travel distance to and from the office. At the same time, 63 percent of professionals looking for work said they are more inclined to negotiate higher compensation levels than a year ago.

More companies are interested in retaining employees nearing retirement age to manage through the exodus of the baby boomers from the work force. Forty-seven percent are likely to offer reduced work schedules as an alternative to retirement. Thirty-nine percent are likely to offer bridge jobs, while 37 percent are likely to offer consulting arrangements.

The survey of 500 hiring managers and 500 workers was conducted by International Communications Research in Media, Pa.

Austin Business Journal