Employers are struggling with a massive job shortage as the global economy continues to struggle, a major industry analyst has warned.
Jobseekers are struggling more than ever as a drop in demand due to economic uncertainties, rising prices and the cost of living, the head of global job market forecasting firm CareerBuilder has warned, as the number of jobs available in the US and other developed economies continues to fall.
Job seekers are increasingly looking for work in fields like healthcare, technology, hospitality and retail and not finding it, he said.
“We’ve seen a dramatic reduction in the demand for jobs in the last year,” said Steve Nesbitt, senior vice president of CareerBuilder’s US market.
“There are very few jobs available for the vast majority of Americans.”
Nesbatt said the US is the most heavily reliant on foreign labour for most of its manufacturing, and this is putting off employers from hiring workers.
The US, the second most important manufacturing nation, has a massive deficit in demand for its workforce, he told ABC News.
“This is going to continue as the economy slows down, as we’re starting to see, as a result of the economic downturn.”
I think the main concern is that job growth is slowing down and that’s going to be a concern for employers in the future.
“The number of new jobs has been on the rise, with the US economy growing at an annual rate of 1.4% in the third quarter of this year, up from an annual pace of 1% the previous year.
The number for January to March was up 2.7% compared with the same period last year, according to the US Bureau of Labor Statistics.
The Bureau of Economic Analysis expects the unemployment rate to stay low this year.
A US unemployment rate of 5.9% is one of the lowest in the world.
The unemployment rate in the UK is 8.4%, with unemployment at 6.6% in October.
The jobless rate is 5.4 percentage points lower in Australia, at 7.1%.
A fall in demand from the US could lead to a reduction in employment in the near term, Nesditt said.
But it could also push the US government to look at measures to ease labour market conditions.
He said employers were also likely to look to other industries to fill the void.”
A lot of industries are really suffering as a consequence of the economy in general and particularly the economy for healthcare,” Nes-bitt said, “and it’s the one area that really hasn’t had a lot of jobs for a number of years.