Recent data has shown that unemployment is at a record low. While a low unemployment rate is great because it signifies a strong economy, it may also have some drawbacks for your business. Keep reading to find out what they may be.
Despite the increase in newly employed workers, employers of all shapes and sizes are struggling with labor shortages. According to many economists, there has been no increase in the number of workers in the labor force since last fall due to high housing costs and slow wage growth in many states.
Although inflation is typically a positive, some employers are in a position where they must increase wages above the natural pace of inflation to attract and retain talent from a smaller pool of candidates. In addition to wage inflation, many employers are facing productivity issues. If they are unable to fill their open positions with quality talent, they may have to hire less talented workers and reduce productivity as a result. For some employers, adding more jobs does not create enough productivity to cover the cost.
Some economists state when the unemployment rate dips below 5 percent, there are some inefficiencies in the economy. So, what does this all mean? While it does not mean employers should forget about filling their open positions when unemployment is low, it does signify the importance of proper recruitment. By hiring quality workers, employers can stay productive and profitable and make the most out of their talent.
If you’re an organization that is in need of some recruitment assistance, look no further than New England Staffing. We have earned the reputation as one of the top IT staffing agencies and are dedicated to providing you skilled IT professionals for all your IT staffing needs and IT jobs. Our service offerings include contract staffing, contract-to-hire and direct hire. You can count on us to help you fill open positions and increase your output during this era of low unemployment.
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If you are an employer who is interested in learning more about our services or how we can help your organization succeed when unemployment rates are low, contact New England Staffing. We look forward to hearing from you!