America's Jobs Crisis

Is America experiencing a jobs crisis?  Let’s do a quick roundup of the numbers from the U.S. Bureau of Labor Statistics (BLS).  As of today, unemployment is 9.1%, meaning almost 14 million Americans are out of work.  Of those, 44% have been unemployed for more than six months.  The average length of unemployment is 40.4 weeks- an all-time high since the federal government began keeping track of such data in 1948.  According to the Gallup organization, a total of 18.2% of the American workforce is underemployed- unemployed or working part-time when they want to work full-time.  Of course, these are national numbers; dramatic regional and demographic pockets of staggering differences are evident around the country.

Compounding this crisis is business response. In a misplaced effort to boost candidate quality and allocate resources, some organizations have turned to what can only be called unemployment discrimination, that is, overtly or covertly considering only the currently employed.  A new report from the National Employment Law Project calls out 73 businesses that asked for this as a ‘requirement.’  “This perverse catch-22 is deepening our unemployment crisis by arbitrarily foreclosing job opportunities to many who are otherwise qualified for them,” said the NELP.

On July 12 of this year, Reps. Henry Johnson, Jr., (D-Ga.) and Rosa DeLauro (D-Conn.) introduced the Fair Employment Opportunity Act of 2011.  This legislation would make it against the law for employers to consider employment status in the selection process.  Last week, Sens. Richard Blumenthal (D-Conn.), Kristen Gillibrand (D-N.Y.) and Sherrod Brown (D-Ohio) introduced the same bill into the Senate.

“Discrimination against the unemployed - especially the long-term unemployed - in job ads and hiring practices flies in the face of what we stand for as a nation: Equal opportunity for all,” said Rep Johnson.  “The Fair Employment Opportunity Act of 2011 will help us level the playing field and get people back to work.”

Truly, this is an uncertain time for employers and employees, and potential employees, alike.  Master Burnett, Managing Director at Dr. John Sullivan and Associates and Dawn Crew, Vice President of Solution Management at SAP, discuss global trends in human capital and business.  Maria-Paz Barrientos, Partner and Practice Leader for Human Capital Management at IBM, looks at cultivating creativity in this complex age.

Remember: government is also the country’s biggest employer and has a unique perspective, and demand, on human capital.  The 2011 Government Talent Summit, September 26-28 in Reston, Virginia, explores the reinvention of government talent management, and features speakers like Pat Tamburrino, Deputy Assistant Secretary for Civilian Personnel Policy at DOD.  Join us!

Image: mrsdkrebs