Surplus labour - costs and benefits for employers

Despite evidence that the worst of the current global recession may be behind us, unemployment will continue to ratchet up for some time to come. It remains a lagging indicator of the economic cycle. The economic and social costs of mass unemployment are impossible to deny although hard to measure accurately. For some employers looking to recruit new workers, the growing pool of unemployed workers does provide - on the surface - an opportunity to hire well-skilled and motivated people often desperate for a fresh chance in work. Chris Tighe focused on employers in the North East in this revealing article in the Financial Times.

“More than 9,000 people in the North East are seeking work as sales assistants, it said, but only 191 such jobs have been advertised. Morrisons, the supermarket operator, has just reported an “amazing response” at its new Wallsend store in north Tyneside: more than 900 people applied for 35 posts….........At Manchester Airport, where an advertisement posted online for just two weeks in February for four places on its graduate training scheme produced almost 2,000 applications.”

The high and rising ratio of applicants to unfilled vacancies should give businesses the scope to find the right people and perhaps unearth some gems who might rise through the business in the years to come. But although the pool of workers is high, businesses must also face the challenge and considerable cost of screening each application. Few smaller businesses have the luxury of being able to employ human resources personnel. Hiring recruitment companies can be expensive. Often the best new employees fall into your lap because of their vigorous approach to job hunting and an ability to keep their nose to the ground to spot what might be the right job for them.