Lhh 2012 Job Market Perspectives

Job market perspectives 2012

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2011 was marked by significant economic, social, ecological, technological and political upheaval that impacted national economies throughout the world.

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2012 Job market perspectives

Steady, deliberate economic recovery

For many employees the losses of the last few years still sting, forcing companies to seek solutions to address worker apathy and disengagement. In addition, although the national unemployment rate declined in 2011, the country’s real unemployment numbers may be masking less than robust recovery when factoring in millions of marginally attached and discouraged workers. Many have been forced to settle for two or sometimes three part-time jobs to fill the gap. Furthermore, backlash from the country’s stubbornly high unemployment rates, as well as perceptions of unfairness and income inequality, spawned the Occupy Wall Street movement, elevating the urgency to create new jobs to the forefront of national and political debate.

The path forward in 2012.

We still have a long way to go to recover the loss of roughly seven million jobs since 2007. While demand in staffing and recruiting rose, as the economy added an average of 132,000 jobs a month, worldwide economists fear it will take years, possibly even more than a decade, for the United States to fully recover all of the jobs that were lost. Job growth needs to average 187,000 new jobs every month in order to return to high levels of employment by 2020. In January, we saw encouraging numbers,

with 243,000 new jobs added to the economy. This marked the 23rd consecutive month of job growth.

We anticipate jobs in the healthcare, information technology, science and business and professional services sectors will continue to add jobs at a healthy rate in 2012. It’s important to note that the role of higher education will be an increasingly important factor in workforce and long-term career planning as companies seek more skilled employees.

With boundaries blurring between work life and personal life, social media will play an increasingly prevalent role in workers’ careers, creating new and diverse opportunities for innovation, flexibility and engagement.

With just seven percent of Gen Y are employed by Fortune 500 companies, large organizations will also need to consider ways to attract and retain younger workers who are selecting companies based on development opportunities, shared values and commitment to community and environment.

Lee Hecht Harrison’s 2012 Job Market Perspectives report explores key trends that will be impacting employers and employees in the next year. We hope you find this report helpful in understanding the job market and its impact on employment.

With growth a top priority for many CEOs last year, businesses began cautiously investing and hiring new employees. Unemployment rates continued to slowly decline and optimism began to increase as workers felt more confident about their job prospects and sought out – and acquired – new opportunities. However, the path toward economic recovery will likely not be straight and narrow in 2012, as workers and employers are still facing a variety of challenges.

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Looking back: 2011 defined by economic, social, technological and political change

January February March April May June

After weeks of citizen protests, the 23-year rule of Tunisia’s president, Zine El Abidine Ben Ali ends.

9.1 magnitude earthquake and subsequent tsunami strikes the east of Japan, resulting in devastating losses.

LinkedIn Corp. completes its first sale of stock to the public. Company shares open at $45 and end its second day of trading at $94.5.

Crude oil prices increase 20% due to Arab Spring causing 2011 energy crisis.

Demonstrators protesting the Wisconsin Budget Repair Bill march from the state’s Capitol to the offices of the state’s business lobby, Wisconsin Manufacturers and Commerce.

Google launches Google+, a social networking platform set to rival Facebook, attracting 150 million active users and capturing the number three spot in the world of social networking in under six months.

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July August September October November December

After 30 years, NASA’s space shuttle program ends as the Space Shuttle Atlantis lands at Florida’s Kennedy Space Center for the final time.

Occupy Wall Street protests begin in the United States and spread to 82 countries by October.

Due to the European Union’s ongoing economic crisis, Italy’s Prime Minister Silvio Berlusconi resigns after serving the nation for three terms.

Shock waves ripple through the global economy when Standard & Poor’s lowers the United States’ long-term credit rating to AA+ from AAA.

American entrepreneur and co-founder of Apple, Inc., Steve Jobs, passes away after an eight-year-long battle with pancreatic cancer.

U.S. Defense Secretary Leon Panetta officially declares the end of the eight-year-long Iraq War during a flag-lowering ceremony in Baghdad.

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The economy and job market

The United States continued its (slow) recovery.

In the United States, anemic growth in the job market helped to define the year, with national and political debates focused on job creation. In September, Occupy Wall Street protests began, putting a spotlight on the issue of joblessness and income inequality. Job creation became the mantra of every Republican candidate seeking the 2012 Presidential nomination.

In September, President Obama proposed the Americans Job Act, a $447-billion package of tax cuts and infrastructure spending designed to stimulate economic growth.

Recognizing the need for stronger corporate leadership to help jump start economic growth, CEO Howard Schultz announced Starbucks would team with Opportunity Finance Network to help provide financing to small businesses to create and sustain jobs in local communities. And billionaire Warren Buffett announced his support for the wealthiest of Americans to pay more federal income taxes.

Bringing attention to the issue of joblessness and sustaining a national dialogue is critical to generating innovative ideas to help solve these problems. However, in order to return to a pre-recessionary unemployment rate of 4.8 percent, we will need to see a reduction of 3.7 percentage points from the December 2011 unemployment rate of 8.7 percent. It took 12 months to reduce the unemployment rate from 9.1 percent to 8.7 percent. At this rate it will take more than six years to recover completely.

According to the McKinsey Global Institute, a business and economics research firm, employers will need to create 21 million net new jobs by 2020 to recover from jobs lost and to account for new employees entering the job market.

There are three scenarios that could occur: low, medium, or high job growth:

Job Growth

Number of jobsadded a month

Jobs created by 2020

Low 77,000 9.3 million

Medium 145,000 17.4 million

High 187,000 22.5 million

Recovery gains stronger in the corporate sector

The positive news is that the economy has been growing now for 10 straight quarters, making up ground lost from the recession. We’ve learned to be very efficient, producing more goods and services than we did before the recession began in 2007 with six million fewer workers.

Unfortunately for the U.S. worker, this increased efficiency hasn’t resulted in a larger paycheck. For every dollar a company earned in income during the third quarter of 2011, only 54.5 cents went to a worker’s total compensation, the smallest share since 1955. Corporate profit margins, however, have reached record levels. For every dollar in income earned, more than 10 cents goes to the corporation, a 37 percent increase since the recession began.

Rather than creating new jobs, many companies are strategically holding on to cash and investing in equipment. With so much uncertainty and volatility, companies have learned how to better prepare themselves for another economic downturn. But in order to achieve the employment gains needed to reduce the level of joblessness – and meet the growing demand for products and services that are needed to sustain economic growth – organizations will need to begin to add jobs and increase salaries.

Source: McKinsey Global Institute, “An economy that works: Job creation and America’s Future”

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Manufacturing activity in the United States is growing at the fastest pace in nearly a year, expanding for 30 consecutive months, helped by a rise in new orders and order backlogs, which may signal a need to add new workers in 2012.

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The global climate

We’re in this together

In 2011, nations throughout Europe faced their own economic challenges as the European sovereign debt crisis threatened stability around the world. Severe debt crises necessitated bailouts for Greece, Ireland and Portugal, while political unrest and high unemployment rates plagued Spain, Italy and Greece. Germany, Europe’s largest economy and biggest contributor to the bailouts, is leading the response to the debt crisis. In December 2011, German Chancellor Angela Merkel laid out her vision to remake the euro bloc, create a fiscal union and repair structural weaknesses in the European Monetary Union.

The earthquake and tsunami that struck Japan in March 2011 reverberated throughout the global economy, impacting production and manufacturing, creating product shortages that were felt around the world.

“If we’re going to grow, it’s going to be because of exports.” – President Obama

Meanwhile, the U.S. trade deficit with China rose in 2011 to a record high $295.5 billion. Growing exports has been one of the central drivers of the U.S. economic recovery, accounting for about half the nation’s growth since the recession ended. The U.S. has been pressuring China to open its markets to U.S. business. In other parts of the world, the U.S. recently passed three new free-trade deals with Colombia, Panama and South Korea. In November, the U.S. also announced the framework for a trade and investment agreement among nine Pacific nations, the Trans-Pacific Partnership. The U.S. is now on track to meet its goal to double American exports by 2015.

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The global climate

Stepping out of your comfort zone

To broaden opportunities, some job seekers will be choosing to step out of their comfort zones in 2012. In December 2011 the Bureau of Labor Statistics (BLS) reported that 3.4 million positions were available within the United States – roughly 40 percent more than June 2009. What are some steps workers can take to capitalize on job growth?

Relocating

In December 2011, the BLS reported that the Northeast and the West had better hire rates of open positions than any other regions in the U.S., at 2.5 and three percent, respectively. For more information on the hot sectors and metropolitan areas anticipating higher levels of job growth, see the Regional Perspective on the next page.

Self-employment

Many individuals are choosing freelance or contract work which gives them new-found autonomy and opportunity to select assignments. With many companies focused on managing costs and cautious about adding headcount, independent contractors are in demand to fill just-in-time needs.

Changing careers

If moving to another region isn’t an option, job seekers can consider “moving” to another industry or function to expand career opportunities. Check out tips for career changers in the sidebar.

. Tips for career changers

Fully research the career.

Understand the reality of your goal. Do your homework. Learn about requirements and certifications. Too often, job seekers want to immediately make the leap into a field they think would be interesting without considering the day-to-day realities of the position, training and education required.

Talk to people who are doing the work.

Conduct informational interviews so you know precisely what you’re getting into. Use social networks and join relevant industry and functional groups. You can ask questions and gain an “inside” perspective. Once you’re fully informed, you’ll need to identify and close gaps in experience and education.

Consider salary.

Find out through networking or other research what the average salary is in your desired career. Since you may be entering the field with minimal experience, chances are you won’t be making a lateral move, so you may need to be prepared to earn less until you develop the skills and expertise to warrant a higher salary.

Overcome the “disconnect.”

Don’t expect a potential employer to take the time to “connect the dots” between your last role and a new one in a different field. You’ll need to persuasively explain how your skills, education and experience can be transferred into the new career.

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Regional insights

WestUnemployment rate:9.7% as of December 2011

Hot sectors:IT, professional and business services, leisure and hospitality

Strongest metropolitan areas:Los Angeles, Seattle

NortheastUnemployment rate:7.9% as of December 2011

Hot sectors:Education and health services, profes-sional and business services, mining

Strongest metropolitan areas:New York, Philadelphia, Boston, Pittsburgh

MidwestUnemployment rate:7.9% as of December 2011

Hot sectors:Mining, manufacturing, professional and business services, education and health services and hospitality

Strongest metropolitan areas:Detroit, Cleveland, Minneapolis, Chicago

SouthUnemployment rate:8.5% as of December 2011

Hot sectors:Mining, retail, trade and transportation, professional and business services, edu-cation and health services

Strongest metropolitan areas:Dallas-Fort Worth, Houston, Oklahoma City, Miami, Tampa-St. Petersburg

Sources: Moody’s Analytics, BLS

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Regional insights Education pays

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While it’s true that some college grads are struggling to find jobs in today’s tough employment market, it’s also true that education gives workers a huge competitive advantage. In December 2011 the BLS reported that the unemployment rate for college graduates is 4.2 percent – half the average of workers with only a high school diploma. And for those with less than a high school diploma? Their unemployment rate currently stands at 13.1 percent.

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Mixing Work with Facebook

Social media continues to blur the distinction between one’s personal and professional lives.The opportunity for job seekers is to leverage social media channels to increase visibility and captures the attention of recruiters or hiring managers with a compelling online “brand.”

The opportunity for organizations is to leverage social media channels and corporate websites to attract and engage potential talent early; convey a sense of the company culture; and communicate company values.

You may find your next job on Facebook

In 2011, only a small percentage of job seekers identified Facebook as the source of a new job. However, in 2012 Facebook is expected to play a significantly larger role in helping individuals land new jobs. Check out these Facebook apps designed specifically for professional networking:

Talent.me: A professional networking app that can be found only on Facebook, Talent.me allows individuals to share professional information with their Facebook friends. The app also allows Facebook users to search for jobs, communicate with others, and even endorse their connections.

BranchOut: Through the networking capabilities of BranchOut, Facebook users are able to see which companies are employing Facebook friends, as well as their friends’ connections. Consequently, users can further develop their networks and receive information about job opportunities that they may not have discovered in any other manner.

BeKnown: Developed by Monster last year, BeKnown is currently being widely used by recruiters throughout the country, as it offers social networking capabilities to all Facebook members, a surprising majority of whom do not currently use LinkedIn.

Don’t call us, we’ll call you

As demand for staffing and recruiting increases in 2012, recruiters are changing their strategy. Rather than sifting through volumes of online applications and resumes, they’re reaching out to candidates directly through social networking sites.

According to JobVite, 31 percent of companies plan to decrease expenditures on job boards this year, while 55 percent said they plan to increase their outlay for social recruiting through sites like LinkedIn, Facebook and Twitter. Why the shift? Job boards typically prove to be far less efficient in identifying the best candidate, generating a large volume of responses from unqualified candidates. However, social recruiting is becoming more sophisticated every day, allowing companies to make better hiring decisions. Recruiters can use social networks to identify potential hires, obtain referrals and check out social bios to learn more about them.

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Bringing employers and millenials together

We know today’s younger job seekers are selective and have different expectations than workers in the past. However, companies can no longer afford to ignore these expectations. Instead, they need to recognize that we are experiencing a radical shift in how we work. It’s time to toss out the “one size fits all” approach to managing talent. Companies must take into consideration the unique traits, preferences, desires and goals of this new generation of workers in the quest to capture their attention, earn their trust and make them part of the team.

Invest in career development. According to the BLS, on average, Gen Y employees only remain employed at a company for a year-and-a-half. They tend to be impatient at times and often become bored with routines, so organizations must offer career development opportunities to keep them interested, challenged and engaged.

Recognize and reward. Acknowledge efforts and success. Gen Y workers tend to be self-directed and seek advancement, so reward high performers with new projects that expand their skills and raise their visibility with senior leaders.

Make it fun and flexible. Cultivate a friendly and outgoing company culture where friendships develop and thrive, both in and outside of the office. Provide flexibility that allows for time away from the office with the freedom to work anytime, anywhere.

Company values matter. Many Millenials are searching for companies that demonstrate values similar to their own. They want to work for companies that are committed to the community and environment. They also want to participate in company-supported volunteer programs which offer opportunities to network with fellow colleagues, use their abilities to help others, and make a difference in their communities.

They are the most-educated generation the country has ever produced, yet only seven percent of Generation Y workers are currently employed by Fortune 500 companies. If this trend continues, who will lead our largest companies in 10 years? According to a recent study by the Business and Professional Women’s Foundation, by 2025 Gen Y will make up roughly 75% of the world’s workforce. With Millenials comprising the majority of the workforce by 2025, employers need to consider how to attract and retain younger workers.

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Where the jobs are:

Accounting

Jan. 2011 – Jan. 2012 change in workforce:

+95,700 jobs Number of American workers:

973,400Regions in demand:

Midwest, Northeast and West

Education and certification:

To acquire a position in accounting, all candidates must earn a bachelor’s degree in accounting or another field that is closely related to it. A wide range of companies are now only hiring prospective employees who have also received a master’s degree or a MBA, generally with a focus on accounting.

In addition, if accountants are hoping to file a report with the Securities and Exchange Commission, they must receive accreditation as a CPA, which is currently licensed by the State Board of Accountancy. To become certified as a CPA, accountants must pass a four-part Uniform CPA Examination, which has been developed by the American Institute of Certified Public Accountants, as well as 150 hours of coursework while enrolled at a college or university.

Engineering


+31,500 jobsNumber of American workers:

1.3 millionRegions in demand:

South and West


Generally, engineers should obtain a bachelor’s degree in civil engineering, electrical and electronics engineering, mathematics, mechanical engineering, or natural science.

Nevertheless, some college students may choose to instead receive a degree that is focused on engineering technology. This type of degree allows students to acquire practical laboratory experience in order to prepare them for a long-term career in design or production, according to the BLS.

Some engineers, especially those who are interested in becoming part-time or full-time engineers, must earn a master’s in engineering or a MBA prior to receiving an employment offer.

Also, the Accreditation Board for Engineering and Technology (ABET) offers certification in engineering and engineering technology. Some engineers may be required to receive such certification in order to be hired, while others may choose to do so to improve their chances of receiving future promotions.

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Where the jobs are:

Information

Unemployment rate:

7.9 percentJan. 2011 – Jan. 2012 change in workforce:

-46,000 jobsNumber of American workers:


Northeast and West


Employment opportunities within the information sector are quite wide-ranging and are renowned throughout the world for providing professionals with high salaries, royalties, and even fame. As a result, competition for a majority of information positions is very high, particularly as economic uncertainty continues to lead to layoffs and hiring reductions.

To remain employable, broadcasting professionals, as well as editors, reporters, and writers must receive bachelor’s degrees while focusing primarily on communication, English, and journalism courses. Some professionals, including those with years of experience, are even pursuing master’s degrees from well-established communication and journalism programs. In short, talent and experience alone will no longer help professionals enjoy long, successful careers, at least for the time being.

Meanwhile, according to the BLS, other employees, such as telecommuters and information technology specialists, must receive an associate or master’s degree at bare minimum, along with certification and ongoing training, which may now occur throughout employees’ careers, no matter how long they have already been working.

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Where the jobs are:

Finance

Unemployment rate:




Northeast and West


According to the BLS, roughly 60 percent of all employees within the securities and commodities industry have earned at least a bachelor’s degree. A majority have also received licensure from the Financial Industry Regulatory Authority.

Meanwhile, financial analysts and managers must attend a four-year accredited college or university and receive a bachelor’s degree, generally with an emphasis in business, economics, or finance. A wide range of analysts and managers have also earned MBAs or master’s degrees in economics or finance.

Financial analysts and managers typically also receive certification as a Chartered Financial Analyst, which can be obtained once professionals pass three exams. Many managers will also earn certification as a Certified Management Accountant. To do so, managers must pass a four-part exam and continue to receive education throughout the duration of their careers.

Healthcare

Unemployment rate:




All


The educational backgrounds of healthcare workers tend to vary more than any other professional. Some prospective workers only need a high school diploma in order to receive employment, while others either need an associate degree, a bachelor’s degree, a master’s degree, a doctorate degree, or a combination of some or each.

Some professionals receive classroom training, while many healthcare workers are trained primarily on the job through internships, part-time roles, or full-time hourly or salaried positions.

Most positions also require ongoing training and certification throughout one’s career, especially as the industry, diagnostic capabilities, and medical care continues to advance. To remain licensed, many healthcare workers will also need to regularly pass examinations.

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Where the jobs are:

Legal


+100 jobs Number of American workers:


Northwest and West


In order to acquire an entry-level position, all lawyers must receive a bachelor’s degree, as well as a juris doctor degree, which usually can be earned in three years. To be admitted into law school, students must at least pass the Law School Admission Test or LSAT, maintain a high GPA throughout college, and have some professional experience, typically as an intern within a firm.

After they complete law school, lawyers must pass a written bar exam and, at times, a written ethics exam in order to receive licensure. According to the BLS, a majority of states, 46 in all, also require lawyers to receive continuous education in order to maintain a working knowledge of the nation’s most recently created law practices.

In the meantime, paralegals have to earn at least an associate degree in paralegal studies or a bachelor’s degree in order to be hired.

Paralegals can, and are often recommended to, obtain certification from a variety of legal organizations including the National Association of Legal Assistants, which offers a two-day-long exam, and the National Association of Legal Secretaries (NALS), which provides the Professional Paralegal (PP) certification.

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Where the jobs are:

Leisure and Hospitality

Unemployment rate:




All


To acquire some of the positions within this sector, applicants will not necessarily need to receive an associate or bachelor’s degree, although most applicants must earn a high school diploma. Nonetheless, most positions within this field, such as coaches, directors, cooks, fitness workers, and security guards, require past experience or proper networking capabilities.

However, some professionals must also earn certifications in order to remain employable. For example, fitness trainers should have certification in CPR, while aerobics instructors usually receive an associate degree prior to applying for jobs. At the same time, some positions in arts administration, recreation, culinary arts, and hotel management require applicants to earn an associate, bachelor’s, or master’s degree.

Temporary Services


+160,500 jobs Number of American workers:


All


In years past, many workers who were interested in receiving temporary assignments through the assistance of workforce solutions organizations could do so solely by earning a high school diploma. However, in the midst of today’s highly competitive market, that is usually no longer the case.

Temporary workers should earn associate or bachelor degrees, as well as skills training, if necessary, from workforce solutions organizations. Such training may be their ticket to a long-term, fruitful career once their temporary assignments have concluded.

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Where the jobs are:

Manufacturing

Unemployment rate:




Midwest, South and West


Education within this sector tends to vary, but employers typically agree that their employees should earn at least an associate degree. Currently, machine manufacturers must receive a bachelor’s degree prior to being promoted to managerial positions, while entry-level workers will likely be enrolled in apprentice programs which, according to the BLS, last at least one year, or even upwards of four or five years. Such programs prepare workers for careers in blueprint drawing and electronics, among others.

Meanwhile, vehicle and parts manufacturers, as well as computer and electronic product manufacturers, should earn an associate degree, along with a bachelor’s degree. Some professionals, who are interested in advancements and higher wages and are willing to pursue further education, also earn master’s degrees, with an emphasis in engineering or even physics.

Finally, pharmaceutical and medical research and development manufacturers require a Bachelor of Science degree and a doctoral degree; technicians should receive a degree from a technical institute or a two-year or four-year college or university.

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Where the jobs are:

Professional and Business ServicesUnemployment rate:




All


Currently, advertising and public relations professionals should earn at least a bachelor’s degree in communication, English, journalism, or a similar field just to receive an entry-level position.

If they are interested in pursuing advancement opportunities, they should consider enrolling in master’s degree courses in order to become even more proficient in oral and written communications. Many public relations professionals choose to also acquire certification from the Public Relations Society of America, especially as they begin to manage departments.

Computer systems design professionals are employed on an entry-level basis upon receiving an associate or bachelor’s degree; to advance their careers more quickly, some employees have chosen to earn a MBA with a focus on information systems, according to the BLS. Meanwhile, prospective and current research and development personnel should considering earning a master’s and a Ph.D. degree within a few years of receiving a bachelor’s degree.

Retail TradeUnemployment rate:




All


Education levels vary extensively within the retail trade sector. Most professionals only need to earn a high school diploma or pass General Educational Development (GED) exams. However, some retail trade professionals, especially managers and individuals interested in receiving promotions as executives, earn bachelor’s degrees from four-year accredited colleges and universities, as well as master’s degrees in communication or business administration, among others.

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The path forward

While 2011 will be remembered as a year of upheaval and change, through it the economy grew, companies saw record profits and job growth steadily increased, while unemployment slowly declined.

Looking ahead, we anticipate more robust job growth in 2012 as demand for goods and services continues to rise – leading to the increased confidence and incentive companies need to continue investing in the creation of new jobs.

About Lee Hecht Harrison:

Lee Hecht Harrison (www.lhh.com) is the global talent development leader. We connect people to jobs through innovative career transition services and help individuals improve performance through career and leadership development. LHH assists organizations in supporting restructuring efforts, developing leaders at all levels, engaging and retaining critical talent, and maintaining productivity through change – helping organizations increase profitability by maximizing their return on investment in developing people, while assisting individuals to achieve their full potential..

For general inquiries contact:

Helene CavalliDirector, Corporate MarketingLee Hecht [email protected]: 917.370.3341

©2012 Lee Hecht Harrison

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Lhh 2012 Job Market Perspectives

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