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    Current Shortages

    May 06, 2003

    The headlines were full of the domestic unemployment rate's move to 6%. As always, the real question is "what does this mean for recruiting or being recruited?" Just a tiny bit of investigation exposes the fact that we are having simultaneous shortages and excesses in the market. The overall Unemployment Rate breaks down as follows:

    Category Population % of Workforce Participation
    Rate    		 Unemp
    Rate
    Less Than High School 12,710,000 10.2% 44.4% 8.2%
    High School Grad 37,468,000 30.2% 64.1% 5.7%
    Some College 34,375,000 27.7% 74.1% 4.7%
    Bachelors or Higher 39,465,000 31.8% 78.1% 3.1%

    In other words, unemployment is a huge problem for workers with a high school diploma or less. It is a huge problem for employers looking for people with some college or a college degree. As we've always said, the most important information in the unemployment data is the local rate.

    From here, it looks like the changes in the workplace over the past decade have really left the less educated end of the population in the lurch. At the same time, the labor shortage in the college educated ranks is getting out of hand quickly.

    -Carrie Baggs

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