The Cost of Unfilled Jobs to the U.S. Economy

Once upon a time, I was a hiring manager, and I took the "psychological profile first" approach to many of the open positions I had to fill. It worked really well, for two reasons: firstly, I managed to fill positions more quickly, and secondly, the people I hired instantly found themselves with prospects. It's honestly wonderful to be able to empower people like that. I'd do it again in a heartbeat.

Thanks for the great comments. @William if only that would happen. That is exactly the way that it should work - working hand in hand between companies, colleges and workers. It truly is what needs to happen. We were watching a segment on the news recently where the company was stating that they can't find qualified workers so they are going to have to bring workers in from outside of the US. Well, if you can't find workers in the US figure out the reason and find a solution. Is the technology not being taught in schools? Then do as you said @William and form a partnership between the company and a university so that the college does offer skills needed to perform the work. Or the company could create OJT (on the job training) type positions and teach the new employees the system. There are so many ways to make things better for both the company and the job seeker. @Jacob some companies will do a huge online job fair trying to attract the right candidates. Some companies do a huge job fair in larger cities to attract the job seekers that they so desperately need. As you can see, there is more than one way to resolve this issue without the state department having to authorize more visas to bring in the workers needed.

Are there programs, either run by government agencies or private enterprise, that work to focus on stale job openings? For example, do large companies like Microsoft or P&G offer events were their hiring teams are focused on finding employees that would be a good fit with proper training for some of these open positions?

Everyone, across all industries and sectors, needs to come together to solve this dilemma. Otherwise, as @Nancy said, these jobs will come from overseas. Instead of the State Department authorizing more visas, the federal government should aim for partnerships among American companies, American colleges and American workers. I think part of the problem isn't just a lack of training, it's a lack of interest from young people. They would rather have a job commenting on viral videos as opposed to working hands-on in health care or manufacturing.

Thanks for the great comments. @Andrew the answer to your question is that it depends; depends upon the industry and the position. Companies are complaining that they can't find qualified candidates to fill the positions so they are outsourcing or looking outside of the country to find qualified candidates. Is this really necessary? I would think that, if the technology is new, the company would try to work hand in hand with the local college/university to add programs that would teach the skills needed. At the end of the program, these individuals could have positions waiting for them. Cooperation between companies and higher education will drive the need and solve the issues. Sounds easy doesn't it? Sure do wish that there was an easy way to make this work as it would be a win-win for all concerned.

A very insightful article. I've never really thought of unfilled positions as a bad thing but rather as an indication the economy is growing. But as Emma pointed out below, it could also mean that companies are not able to find the kind of talent and skills that they need. As an aside, could this also mean that, to some extent, jobs (due to advances in technology) are evolving too rapidly for the current workforce to keep up with their skills development and education?

In response to Kellen's comment about the "fit first, skills later" practice, I find myself in disagreement. I understand what you are saying, that just because an employee has a great attitude, that doesn't mean they are a high quality worker. However, there is nothing that says the employee must be retained if they cannot pick up the skills needed for the position in a reasonable amount of time. I think it's a great way for companies to fill vacancies, and for people to find jobs they may otherwise be unqualified for.

@Catherine: The high number of unfilled jobs is not uniquely American. In the report referenced in the article, high vacancy rates are global. Besides the U.S., Canada and Germany are experiencing a large number of unfilled jobs. Though this can indicate a growing economy, it also points to a mismatch between job applicants and employers.

We hear a lot about unfilled job positions, but I've never seen it spelled out terms dollars and cents before. I think I'm probably not the only worker who is trying to understand the skills gap issue. We all probably know at least one skilled person who is having a hard time finding sustainable employment. I agree with @Hema in that I'm also glad to read that companies are realizing the benefits of on the job training. There's a lot that people can learn on the job and ramp up to speed quickly if given the chance.

How does the number of unfilled jobs and the high cost its takes on the American economy compare to other countries in the world, such as in Europe or Asia? Is this a uniquely American problem or a global problem? I think one solution for this problem is making it easier and more reasonable for young adults to get loans for college. This would allow them to get the skills they need to fill these unfilled positions without putting them into a lifetime of debt.

Thanks for your comments. @Katharine 3 full days of training for a retail sales position does seem to be in excess but my understanding is that Walmart does exactly that even though turnover is quite high. I think it's just a way of the company covering itself against possible lawsuits. @Shannon if only companies would offer incentives. Sadly we are lucky to get a living wage let alone real benefits of any kind. A sign on bonus would be awesome and would help the economy greatly but companies are saying that they can't afford to do the things that they did 10 years ago. I guess we should just be happy that we can get a job and let it go at that. Hopefully this tide will turn in the next decade and incentives will once again be offered.

I never realized the impact of unfilled positions. The examples here really show just how much this can affect the economy as a whole. I think, though, that if companies were more willing to offer incentives, sign-on packages and bonuses, they would attract more qualified candidates, ultimately boosting the economy and their productivity.

I agree with Kellen: an employee who isn't pulling his/her weight, whether due to inexperience or some other reason, can drag down the morale and productivity of an entire office. Also, in cases when the employee doesn't stay long, the investment in them is wasted. I worked at a department store in college that required three entire (paid) days of training- this place left no stone unturned- benefits, longevity awards, company philosophy, everything was covered in those three days. Almost everyone in my class was working for the summer, then going back to school, and I remember thinking: what a waste of money.

Thanks @Kellen. It is very true. There has to be a good balance between fit and skills.

The "fit first, skills later" model of hiring isn't necessarily a good solution. In my experience, the lack of skills and lack of resources (and time!) for training can be a huge issue. Someone can be an excellent fit, personality-wise, but let's see what happens when it is revealed that they are not capable of learning the necessary skills! The whole team will sour on the "super nice guy" that just can't get the job done. Hiring someone with the necessary skills just has to be the priority.

@Hema thanks for your comment. I don't think that there's much that you can do prior to the first contact with the company to show them the you have the personality and the fit that they are looking for other than to state just that in your cover letter or summary. But, for the company to get a better idea about you, they would have to actually meet with you to determine if your personality is a good fit for them.

It is reassuring to read that companies are slowly changing the way they hire workers, especially since they are losing revenue for every position that remains open for too long. Is there any way workers can make themselves more appealing to companies that hire based on personality and fit rather than skills?