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Participation Problem

February 11, 2013 Leave a comment Go to comments

The participation rate in the employment market continues to hover around 63 percent. So nearly 40 percent of working age adults in the US are not in the job market and not part of the 8 percent that are considered unemployed.

The skills gap is widening because of this. Far too many people are not only not working and making money, but they are falling further behind in desired skills (and work histories showing they have those skills). These aren’t all factory floor workers either. They are at all levels.

So as the economy has recovered some, the desired work force has shrunk and continues to push in that direction. Recruiters will continue to work with the 63 percent that are involved and desired by hiring managers. It will take very serious growth to reverse this and increase the participation rate. Either way we will have a scarcity of talent for quite some time.


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