According to CNNMoney.com
The biggest problem with job growth right now isn’t too few new jobs. It’s too few skilled workers.
- Job growth rose by 132,000 in 2005.
- Job growth rose by 115,000 in 2006. This indicates 11% drop in job growth even though in 2005 we had 2 horrible hurricanes.
- The overall the unemployment rate stands at 4.5 percent.
- There were 4.2 million job openings in October, up 8.8 percent from a year earlier, while hirings rose just 1.5 percent. Meanwhile, the number of workers quitting, retiring, getting fired or laid-off grew only 0.6 percent.
Experts say that job growth and the economy would be significantly stronger if employers could find the skilled workers they really need. There would virtually be no long-term unemployment for skilled workers. The employers are quoting that their inability to find the workers with the skillset they need is one of their top problems. Most employers are looking to grab such skilled worker from other employers to fill their void, or hire them from outside the country, or hire someone without the desired skills. All this leads to drop in productivity level of the company. Alot of employers are holding on their workers and throwing in incentives to keep them. Experts think this trend will continue for a longer period (say a decade), with alot of Baby Boomer start leaving the work force. There will be some relief in 2012-2015 when demographic trends should start to help.
Now this is good news for the working class. This adds more stability to their life. However possessing right skill-set would be a super super edge right now…
This is bad for most companies, especially auto industry. I would definitely avoid those stocks…
- Keep away from Ford Motor Company (Ticker: F) with EPS of -3.35 and Future EPS = -6.06
- Keep away from General Motors Corp (Ticker: GM) with EPS of -16.93