Wednesday, June 16, 2010

Q2 Job Market Update

Since my last entry in March we have not seen any changes to the job market. In March there was a sense that the market was getting better. In Q1 we did see more postings and client requests resulting in more interviews for potential hires.

Unfortunately many of these job openings/new hires have not really come to closure. Why is this happening?

Companies have many people to choose from and will see many candidates before deciding on who is best for them. The slow economic/sales growth allows this to happen because for the most part they are able to get by with the human capital already in place. Additionally most people who are on the market don't have many options so they are on the market longer, companies are not at risk of losing a candidate if they don't move quickly. Over time the ideal person is not identified or is lost in the process. Either the process starts over or the company decides to change the specifications thus creating a different job but not filling the orginial opening.

In other cases positions are created and filled but the process takes many weeks from the first interview to recieving an offer. The lack of turn over means more people are interviewing for the same role, a role that one person will recieve.

Unfortunately we don't see a change in the near term. One of two things need to happen - companies (most) need to see a clear increase in demand for products and or services before investing in human capital. OR - Capital markets need to support IPO's which will allow smaller businesses to invest in building their organizations. The Bay Area has many companies looking for the IPO window. Once the window opens and multiple companies go out we will see jobs opening up not only in the growth companies but the companies that support them and the companies that lose people to the new companies.

This summer may be as tough as last summer. If so you will need to work hard at finding your next job. Cross your fingers this is not the case. If we have a slow summer the demand should pick up in the fall and by then we hope to see companies and the capital markets take off.

Please feel free to reach me if you want to talk about your job search and how you can increase your chances of getting hired.

Happy hunting!

Bryon McDougall