Members of individual groups experience the effects of the economic downturn differently.

Workers who are about to retire may have to postpone their plans. David Mezzapelle writes on HR Leaders.org;  “after completing extensive market research it became clear to us that today's 50+ population wants to continue working past retirement.” “Most cite the need for income (84%), boredom avoidance (78%) and health coverage (56%) as the reasons to continue working.”

Young job seekers--who are competing with more experienced workers--may find it very hard to break in. According to Steven Greenhouse of the New York Times: “The number of employed workers ages 16 to 24 has fallen by two million over the last two years, to 18.3 million, while the number of Americans 65 and over who are working has risen by 700,000, to 6 million.” A drop in internships is compounding this situation. Lindsey Gerdes writes “Citing budget cuts, decreased workloads, and downsizings, companies say they expect a 21% decline in undergraduate internships.” This pattern is self-perpetuating; as individuals with access to fewer internships and job opportunities go on to have even more difficulty getting experience.

Males seem to have been disproportionately affected in the Western world since they are often employed by companies in the hardest hit sectors. According to the International Labor Organization, “The world's economic crisis has cost more men their jobs than women in Western countries.”

Unemployed individuals may enrich their experience by volunteering. Julie Bosman of the  New York Times writes, “In Philadelphia, Big Brothers Big Sisters has seen a 25 percent increase in inquiries from potential mentors over this time last year. And the Taproot Foundation, a San Francisco-based organization that places skilled professionals in volunteer positions, had more people sign up on one day earlier this year than in an entire month a year ago.” Volunteers can enrich their careers by gaining skills and experience that they may not have otherwise had a chance to. 

Workers who currently take advantage of flexible working conditions may no longer do so, as a result of fear. Although some experts have suggested that remote and flexible working arrangements may increase in this economy, individual workers have expressed concern that being away from the workplace could make their job less secure. Shin writes “In good times, workers frequently seized the opportunity to use "flex time" and family leave, to telecommute and to take paid sick days. But, according to workplace consultants, human resources specialists and employees themselves, those days are slipping away. More workers are giving up those arrangements, or resisting asking about them in the first place, out of fears that doing so will make them appear less committed to their work and therefore more expendable.”

Unfortunately, some workers may be more vulnerable to exploitation when times are tough. The results of a GAO (Government Accountability Office) report found the “WHD (Wage and Hour Division) frequently responded inadequately to complaints, leaving low wage workers vulnerable to wage theft.”

Together, how do all of these factors affect HR? Valuable workers may be lost, potential talent may be undeveloped, or applicants may have non-traditional career or development paths. In light of heightened competition for jobs, HR must become even more proficient at wading through mountains of information to identify the best and most appropriate candidates.

When the economy picks up, perhaps organizations will have to offer young workers development opportunities to help them catch up. In addition, HR will have to develop creative ways to use the skills and knowledge of experienced workers while meeting their working needs.

How is your organization anticipating and coping with these changes to the workforce?


References:

Bosman, Julie. “From Ranks of Jobless, a Flood of Volunteers.” The New York Times [www.nytimes.com]. March 15, 2009.

Brennan, Mike. “Talent Intelligence: Cut Through the Chaos.” Talent Management [www.talentmgt.com]. March 2009.

David Mezzapelle. “Challenges & Opportunities Facing 50+ Job Seekers.” HR Leaders.org [www.hrleaders.org]. March 6, 2009.

Gerdes, Lindsey. “Internship Hiring Is Tanking.” BusinessWeek [www.businessweek.com]. March 24, 2009.

Greenhouse, Steven. “Labor Agency is Failing Workers, Report Says.” The New York Times [www.nytimes.com]. March 24, 2009.

Greenhouse, Steven. “Young and Old Are Facing Off for Jobs.” The New York Times [www.nytimes.com]. March 20, 2009.

MacInnis, Laura. “Economic crisis hurts male workers most: UN.” Reuters [www.reuters.com]. March 5, 2009.

Shin, Annys. “As Cuts Loom, Will Working From Home Lead to a Layoff?” The Washington Post [www.washingtonpost.com]. March 23, 2009.

U.S. Department of Labor, United States Government Accountability Office. GAO Highlights, March 25, 2009.