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Is employment news all bad? I donít think so.
North American political leaders, †economists, and many in the media would have you believe that things right now are terrible. The †economy is faltering; the unemployment rate is barely budging;†the bad news gets all the press.
On a micro scale, this bad news is sometimes exemplified by the number of people looking for work, and the amount of time that it is taking them to find opportunities; let alone be re-employed.
And, for a while now it has seemed†as though market job opportunities have been†limited, and the time to land these interminably long.
Lately though, I’m noticing a change. It’s yet perhaps to ripple through the markets, and unlikely to necessarily draw much media attention, but people are finding jobs, and in greater numbers and at an increasingly rapid rate.
Individuals whom I’ve spoken to, who have been looking for work, only a short time, are being offered positions. Individuals whom I’ve spoken to, who had no opportunities on the go, are now being considered for multiple positions. Individuals who are getting offers, are receiving more than one.
What is happening? I put it down to several†factors:
1. The economy is expanding. Does this mean that there will not be any layoffs? Of course not. Companies choose to allocate human capital on the basis of need, and if a particular product or geography is no longer warranting the investment, resources will be reduced and reallocated to where there is greater opportunity. Yet lately, companies have more money in their bank accounts, and are choosing to invest these funds†on growth and growth in human capital to deliver incremental revenue.
2. Competition is heating up. Companies that fail to grow, don’t just stand still; they shrink and ultimately risk failing. Owners, boards, executives, and other stakeholders aren’t sitting still. They are increasing the competition level in their industry. This means refreshing their†products, services, markets; new ways of doing things; and ultimately means additional and new skill sets to make this happen.
3. We are still recovering from the last recession. Companies that cut deeply to survive the last recession are now restoring needed services that were sacrificed to survive. Investments in†people development; infrastructure; I.T.; customer service; and communications are ramping up with an attendant increase in hiring for skilled practitioners in these areas.
4. Private equity, venture capital, and angel investment firms are flush with cash. Through a combination of capital raising, and the profitable selling of past investments, these firms are loaded with capital that needs to be redeployed. As a result, new and early stage business ventures are getting the financial resources they need to grow. Expect hiring in such firms to continue to be robust. Look for cloud-based SaaS providers of just about anything to be funded; biotech,†non-fossil fuel energy developers, and environmental firms are staffing up.
5. Finally, the wild card continues to be the public pension plans. In Canada alone, the ten largest public plans have nearly $1 trillion dollars in assets. These dollars are all being invested via private and public debt instruments, private and public equity investments, and investments in infrastructure and real estate in growing the economy. And, the assets are going to continue to grow… to more than $2 trillion dollars in the foreseeable future. Add to this, employer pension plans, and individual retirement savings plans which are also continuing to grow, and all of the money in these plans is going to go towards, you guessed it, growth.
Is there bad news out there? Of course there is. Is the news all or mostly bad though; I think if we look through the lens of those who are finding work and those working in firms witnessing the investment†in growing their people, their markets, and their revenues, we have to say that it’s not.
I believe that we are poised for robust growth in our economies and even better times ahead. (Fingers crossed).
Is business improving? Are companies growing?
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About the author
David Wexler heads up a†human capital consulting firm of the same name.†David leverages his many years of proven expertise in building recognized market leading healthy corporate working environments in public sector, private sector, and crown corporations, across Canada, and in multiple countries world-wide to assist organizations looking to introduce or enhance Human Capital strategies that contribute measurably to overall business success.
He can be reached at†david(at)davidwexlerconsulting.com
Filed under: business, david wexler, economy, employment Tagged: business, david wexler, economy, employment