Skills Shortage Means Many Jobs Go Unfilled

Career College Central Summary:
  • About 33% of 848 small-business owners and chief executives said they had unfilled job openings in June because they couldn't identify qualified applicants, up from 31% of 811 owners nearly two years ago, according to surveys by The Wall Street Journal and Vistage International, a San Diego peer advisory group for executives. During this period, owners' confidence in the economy increased.
  • The tightening of the labor market is one factor, according to economists. The unemployment rate in June was 6.1%, down from 8.2% two years ago. A shortage of workers with the right skills and experience is also a major impediment.
  • In the latest WSJ/Vistage survey, 35% of 270 services businesses said they couldn't identify qualified candidates, versus 12% of the 135 manufacturing firms, and 8% of 85 wholesale trade businesses.
  • Overall, 43% of small-business owners said unfilled jobs were impeding their businesses from growth or expansion, compared with 39% in 2012.
  • Karla Daniel, co-owner of a 20-person company that sells and services power equipment…"We used to get a lot of technicians from the farming community, but there aren't as many farmers anymore," says Ms. Daniel… "It's hard to find anybody with mechanical ability."…She even offers to foot the $5,000 expense for entry-level recruits to participate in a three-year training program from a vendor while on the clock. Few people take advantage of the perk, she says, or they quit after just a few weeks.
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