Is America Really Near Full Employment?

Employment expert weighs in on the truth behind latest jobs numbers

JobsThe latest jobs report has many people talking about “full employment” and the fact that America is allegedly near this state. However, what does full employment really mean, and is our nation truly almost to this place?

Rob Wilson, President of Employco USA and employment trends expert says, “The fact is that we are not at full employment yet.  We’ll know if we are approaching full employment when inflation starts to really pick up, which I expect to see within the next 6-9 months.  At that time, I believe the Fed will answer with more dramatic rate increases and we’ll virtually reach full employment.”

Wilson says that experts who are calling this ‘full employment’ are speaking too soon due to our rocky economic history.

“Normally, the general rule-of-thumb full employment indicator of around 4.5% can’t be relied upon right now.  We’re still in uncharted waters coming out of the freakish recession and the new tariffs, which means the economic and employment industries are struggling with accurate predictions,” says Wilson.

However, Wilson says that the jobs’ report is very good news, and right on track with what employers in this nation say they are experiencing.

“In talking to our clients, even though we’re not quite at the full employment level yet, employers are still having a difficult time finding good quality candidates for their open positions.  We haven’t seen significant wage growth that typically accompanies low unemployment rates, but I think that’s next on the horizon,” says Wilson. “We need to be careful to keep rapid wage growth under control, otherwise, the U.S. might face a brand-new set of problems that will be very tough to overcome.”

For more on this topic, please contact Rob Wilson at rwilson@thewilsoncompanies.com.

Why So Many Americans Are “Ghosting” Employers

Employment experts talks new trend and how it’s impacting the hiring process

Ghosting“Ghosting” (when a person ends a relationship with no communication or forewarning) has been a hot-button topic in the dating community for years, but now the word is being used in employment circles to describe a new and troubling trend of job applicants who simply disappear off an employer’s radar.

“Ghosting isn’t just for Tinder users anymore,” says Rob Wilson, President of Employco USA and employment trends expert. “It seems that our booming jobs economy has led to applicants who simply ‘disappear’ during the interview process. According to LinkedIn, many employers now say that the tides have turned on them…instead of applicants desperately hoping to get a call-back, hiring teams themselves now find themselves dealing with unanswered calls and candidates who suddenly go MIA without warning.”

Wilson says that the problem is such that some companies have even instituted changes to their hiring process, including putting multiple conditions on job offers. He also adds, “Instead of narrowing it down to just 1-2 qualified applicants and cutting everyone else loose, companies are now wisely holding onto all possibilities before assuming that their search is over. With so many job openings, applicants can now play fast and loose with opportunities, and sadly many of these applicants take the coward’s way out and simply disappear without any further communication.”

Along with this growing trend of ghosting job opportunities, Wilson says that many employees are now quitting their posts in droves. “According to the  Bureau of Labor Statistics, the amount of employees who have voluntarily left their jobs is almost DOUBLE that of the number of employees who were fired. And, in March of this year, 3 million Americans quit their jobs out of their own volition.”

While Wilson says it is wonderful that so many jobs are opening up and Americans now feel safe to quit their positions or seek new opportunities, he cautions that ‘ghosting’ possible employers is in very bad form and could come back to bite you in the future.

“Even if you decide you do not want to work with a company, it is a bad idea to just cease communication without giving the employer any idea of what is going on,” says Wilson. “You never know when you could wind up looking for a job again, or when you could find yourself at an industry event or networking dinner with that same hiring agent. It’s always best to treat people the way you would want to be treated, even in the hiring process.”

For more on this topic, please contact Rob Wilson at rwilson@thewilsoncompanies.com.

Update: This blog post was quoted by Benefits Pro in an 07/13/18 article, read more here:
https://biv.com/article/2018/07/one-five-bosses-are-judging-their-employees-taking-lunch-breaks-study

Benefits Pro

Here’s Why Millennials Keep Changing Jobs

Employment expert discusses new findings about “job switching” among young people

Changing Jobs“Job switching” is a fast-moving trend which has changed the face of the American workplace.

“Gone are the days of retiring after 50 years with a gold watch,” says Rob Wilson, President of Employco USA and employment trends expert. “A new study has found that job-switching continues to rise, particularly among Millennials and those working in the tech industry.”

Wilson says that “job-switching” is the result of employees seeking greater learning opportunities and increased pay. “Today’s young workers aren’t afraid to leave a well-paying, suitable job, which makes them different from former generations. And, research shows that this willingness to try new things pays off, especially when you are young: New research shows that workers who spend 2-3 years at their first job end up earning more money over their lifetime than workers who spend 4 or more years in the same role.”

The employment trends expert says that becoming complacent could stagnate an employee’s growth, as well as keep them from learning new skills and networking with new people.

“A person who shows up to the same office every day for years is probably not going to be greeted by opportunity very often,” says Wilson. “On the other hand, workers who are willing to put themselves out there and keep their skills sharp could find that their tenacity pays off.”

So, what should employers do to keep employees from bailing?

“Make sure that you are offering your employees more than just a paycheck. Along with room for advancement, offer your employees continued learning seminars and educational opportunities. Allow them room for creative control where possible, and help tease out their hidden skills and abilities.”

For more on this topic, please contact Rob Wilson at rwilson@thewilsoncompanies.com.

New Study: Actually, Robots Won’t Take Our Jobs

Employment trends expert explains new findings and whether humans should fear being replaced by A.I.

A new study suggests that previous findings regarding job automation predictions might have been way off. The Organisation for Economic Co-operation and Development (OECD) says that fears over artificial intelligence stealing jobs might be overstated.

“The findings from the OECD are helping to reassure some workers who feared that they were going to be replaced by robots in the next 20 years,” says Rob Wilson, President of Employco USA and employment trends expert. “These researchers are now saying that previous numbers were overstated and did not take into account different types of jobs which fall under the same name and title.”

In other words, says Wilson, previous studies regarding job automation may have been too broad. In fact, when it comes to considering the risks of artificial intelligence’s impact on the workforce and our economy, Wilson says we need to break down the numbers as much as possible.

“The fact remains that earlier findings show that fast-food workers could be at serious risk of losing their jobs to robots in the next several years. Another recent study found that each new robot added per 1,000 workers causes wages to drop in the surrounding area by around 0.25 and 0.5 percent,” says Wilson. “We can clearly see that in specific industries, the impact of automation cannot be overstated.”

Wilson says minimum wage hikes could also make robots the preferred option for employers. “Robots don’t need raises,” he says. “They don’t need healthcare or sick days. For employers who are looking down the barrel of ever-increasing business costs, robots are a cost-saving option in the long-run.”

The employment trends expert also points to a new study which highlighted the fact that Seattle workers lost $129 a month on average after the city’s minimum wage was increased to $15.

“Higher wages sound like a boon for employees, until you realize that employers simply cannot keep pace with these increased costs,” says Wilson. “As a result, they cut staff, limit hours…and consider new technology like automation to replace workers. This is just the beginning of a very disturbing new trend which could lead millions to end up out of work.”

For more on this topic, please contact Rob Wilson at rwilson@thewilsoncompanies.com.

313,000 Jobs Added in February, But What Does that Mean for the Average American?

Jobs

Employment trends expert breaks down the numbers from Friday’s jobs report

After a pleasantly shocking jobs report on Friday, employment experts are now saying that the United States is at ‘full employment.’ But, what does this mean for Americans, and are the numbers really as good as they seem?

“February’s jobs report is a solid sign that our economy is getting stronger,” says Rob Wilson, president of Employco USA and employment trends expert. “Not only were 313,000 jobs added in a variety of low, middle, and high-wage industries, but we also saw an influx of hundreds of thousands of people rejoining the job market. This is huge news, as there had been fears that our workforce was depleted and that many Americans were simply opting to not seek employment.”

However, the employment expert explains that some people might be misled by the news that America is now at ‘full employment.’

“Full employment does not mean that every American has a job,” says Wilson. “Full employment is a term that economists use to describe optimal employment, when unemployment is at the lowest possible level without causing an unhealthy rebound of inflation in which employers have to compete too intensely for workers and bump up wages too quickly.”

In other words, our current economy is one that is optimal for both workers and employers.

Wilson says, “2018 is already off to an incredible start. We have added an average of 276,000 jobs a month, compared to 182,000 in 2017, and this growth shows no signs of stopping.”

For more on this topic, please contact Rob Wilson at rwilson@thewilsoncompanies.com.

Why the New Tax Code Could Lead to a Big Boost in the Gig Economy

Employment expert explains why more workers are freelancing…but is it a good idea?

The amount of people relying on freelance gigs for their sole salary has increased steadily in recent years. By 2021, over 9 million Americans are expected to be part of the country’s ‘gig economy,’ in which workers cut ties with companies and work for themselves. And, President Trump’s new tax reform could hasten and increase this growth, but what impact could that have on workers and company growth?

“There is a provision in Trump’s tax law which will allow sole proprietors (including freelancers like Uber drivers, graphic designers, consultants, etc.) to deduct 20 percent of their revenue from their taxable income,” explains Rob Wilson, employment trends expert and President of Employco USA, an employment-solutions firm based in Chicago, IL.

Wilson explains that this tax provision could add up to thousands of dollars in savings each year. “In addition, this tax provision will be beneficial for bosses who are looking to save on payroll costs. By switching workers from salaried employees to contracted freelancers, they can save big…and workers will have less reason to complain, as they can earn more money under the new provision as well.”

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Is America Too Fat to Work?

New Study Says Poor Health is Partially to Blame for America’s Unemployment

HealthEmployment numbers have been very encouraging lately, but a brand-new Gallup survey for the Center for Advancing Opportunity is cause for alarm. The survey found that the people who most need steady jobs (such as those living in impoverished neighborhoods) are actually still greatly behind the rest of the nation when it comes to employment. And, it turns out that poor health could be to blame.

“Low-income areas have an unemployment rate of about 10 percent, compared to our current national rate of unemployment, which is about 4 percent,” says Rob Wilson, President of Employco USA, and employment trends expert. “While we tend to blame factors like lack of job growth in these areas, this new Gallup survey has pinpointed a very surprising culprit: Chronic health issues and overall poor health. This can include things like diabetes, obesity, back problems, and cardiac concerns.”

According to the survey, about 30 percent of job-seekers in these areas say that they can’t find work or maintain employment due to their health issues.

Wilson says that this survey is important because it highlights where our country’s focus needs to be in order to help improve job numbers.

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Oregonians Can Now Pump their Own Gas, But is that a Bad Idea?

What the recent self-service debate in Oregon reveals about the future of American employment

The state of Oregon recently made headlines when it changed a decades-old law which prevented self-service gas stations. Now, Oregonians will have the option to pump their own gasoline, provided they live in a county with less than 40,000 people. However, it has left many people questioning the role of “make-work” jobs in this economy, and whether the country is going to suffer from the impact of these small but crucial decisions.

“Most Americans pump their own gas, as New Jersey is now the only state which is strictly anti self-service stations,” says Rob Wilson, President of Employco USA and job trends expert. “However, this issue is about so much more than getting out of the car to pump your own gas. It’s about whether we are phasing out certain jobs faster than we can replace them, and what’s going to happen to unskilled laborers and those without job experience and education.”

Wilson says the phasing out of full-service stations in Oregon is similar to other industries such as fast-food and data collection and processing., which are predicted to lose 375 million jobs to automation by 2030. “It’s certain that many employees in Oregon service stations could be facing termination or a reduction in hours, provided that Oregonians are willing to pump their own gas in exchange for lower prices. The question is whether we are going to be making jobs for these unskilled laborers or those with little education and experience in order to make up for the jobs we are taking away from them.”

For more on this topic, please contact Rob Wilson at rwilson@thewilsoncompanies.com.

375 Million People Are Going to Be Replaced by Robots

Employment trends expert explains the shocking new numbers regarding jobs and automation

It was just announced that 375 million jobs may be automated by 2030. Those most at risk at being replaced by robots include those that work in fast-food and data collection and processing.

“If you work in a physical job that has a predictable environment, such as a fast food worker who takes orders, you are at risk of being replaced in the future,” says Rob Wilson, President of Employco USA and employment trends expert. “The same is true for people who work in low or mid-tier office jobs, such as data entry specialists, paralegals, and many more.”

Wilson says that we are already seeing signs of this in our fast-food restaurants and fast casual dining spots. “Places like Panera and Wendy’s are using kiosks and self-service tablets to simplify the customer experience and to make ordering even faster. The same is true for sit-down restaurants like Chili’s and Olive Garden. While many people enjoy the convenience of using a computer versus waiting for a server, it’s causing a great deal of concern for low-level employees and people who don’t have access to continuing education and job training.”

Wilson also believes that minimum wage hikes could make robots the preferred option for employers. “Robots don’t need raises,” he says. “They don’t need health care or sick days. For employers who are looking down the barrel of ever-increasing business costs, robots are a cost-saving option in the long-run.”

However, Wilson assures Americans that automation is far from a death knell for the economy. “Yes, automation is going to change the economic landscape, but it’s not going to turn the country into a dystopia run by robots. However, workers do need to make sure that they diversify their skills and become adept in many different functions, as robots (such as the automated burger flippers in fast-food joints) have limited abilities. It’s no longer enough to just show up and do your daily duties. A worker has to be engaged, present and connected to their fellow workers and their customers, as this human connection is something that a robot can never achieve.”

For more on this topic, please contact Rob Wilson at rwilson@thewilsoncompanies.com.

Friday’s Jobs Numbers Bring Glad Tidings as Holiday Season Approaches

Employment trends expert explains the latest jobs numbers and what they mean moving forward

Over 260,000 jobs were added in October. But, what does this latest jobs report mean for the average American?

“Last week’s numbers were quite encouraging,” says Rob Wilson, President of Employco USA and employment trends expert. “Even with hurricanes and other major natural disasters across the country, the job market continued to stay strong and show positive growth.”

Wilson says that this latest report suggests that the American economy could be in the strongest place it has been in recent years. “Jobs have been growing for a while now,” says the employment trends expert. “But, we were always quick to caution Americans that it could be a blip. At this point, I think it is now safe to say that this is not an anomaly: the employment market is finally recovered and resilient once again.”

The employment trends expert points out that October’s numbers are the highest in more than a year, “Additionally, unemployment has not been this low since Clinton was in office,” says Wilson. “And, other indicators (like consumer spending) are also very heartening.”

For more on this topic, please contact Rob Wilson at rwilson@thewilsoncompanies.com.