May, 2007

The US Bureau of Labor Statistics reported that job creation during April, 2007 was fewer than 100000 jobs. ADP, which handles payroll services for so many businesses estimated that job creation was actually closer to 66000 jobs.

So why does every business in the US and every employment agency, search firm and temporary agency complain that there are not enough job applicants available to fill their job openings?

Go to websites that recruiters frequent and the story is the same--we are trying to fill positions. Where can we find someone with ____ experience? Companies are contacting recruiters and begging for help.

So where is the disconnect with the government numbers?

The government numbers are right but the interpretation of the numbers by the press is wrong.

We have a labor shortage.

After all the hubbub (or was it a hullaballoo) about all the jobs going to India, the US economy is finding it hard to find enough people for the work that it needs done.

Did you know that the US employs more IT workers today than it did at the time the last recession started? That little tidbit has been buried in the wake of fear about a housing market collapse that hasn't happened, the sub-prime mess and the stories about the failure of the war in Iraq.

And we still only admit 65000 new H-1b workers into the US. As a result, we are way short of what we would have working here if the protectionist cuts wasn't passed during the last recession.

You see, up until that time, we had over 200000 workers arriving in the US. That means we have been short over 135000 workers per year for the passed 5 years--or 750000 workers sicne the cuts went into effect.

You think business could have used a few of those?

Anyway, salaries are pushing up in almost all fields as firms try to cope with the shortages. Individuals with H-1b visas are no no longer being treated poorly at employment firms. Some of you may remember the days when the call would go something like this, " Do you have a visa? Sorry, we can't help you."

Now, more and more calls go, "Do you have a visa? No problem. The client will do a transfer."

And for those of you who resent that jobs go to people with visas, the reason is not the desire for cheap labor; it is because the people have the skills that firms want and you don't.

So, it's time to increase H-1b visa admissions to the US and offer businesses the skilled labor they need to face the demands that we will have in the next decade.

Jeff Altman
The Big Game Hunter
Concepts in Staffing
thebiggamehunter@cisny.com

© 2007 all rights reserved.

Jeff Altman, The Big Game Hunter, is Managing Director with Concepts in Staffing, a New York search firm, He has successfully assisted many corporations identify management leaders and staff in many disciplines since 1971. He is a certified leader of the ManKind Project, a not for profit organization that assists men with life issues, and a practicing psychotherapist.

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