An Employer’s Market

Posted on February 20, 2008
Filed Under Job Growth, Dips & Humps, War for Talent |

My post (Las Vegas is sliding into a recession) last week about it being an “Employer’s Market” drew some comments.  Most were actually questions about ‘what is an employer’s market?’ 

For a full definition, visit a previous post when I first commented on Nevada becoming an Employer’s Market. 

But basically - we look at the unemployment gauge the same way real estate experts look at the number of homes on the market.  When we pass the threshold of balance - the market changes.  In real estate it is either a buyer’s market or a seller’s market.  In employment, it is either a jobseeker’s market or an employer’s market depending on the unemployment level. 

Some experts consider 5% unemployment to be ‘full’ (or balanced) employment, where every worker who wants to work, is working.  And those that make up the 5% unemployment are unemployable or do not care to work.  In Nevada - we have never used the 5% benchmark, because Nevada rarely has an unemployment level higher than 4.5%. 

Today, Nevada’s unemployment level is 5.8% - the highest it has been in five years (since the post September 11th tragedy).  That is higher than the national average, and surely higher than ‘full employment.’  Therefore - it is easier for employers to find talent.  Great employers scout and acquire great talent in an employer’s market, just as great investors scout and find great real estate deals in a buyer’s market.  It is just a supply~demand thing.  When you here someone say ‘Buy low.  Sell high.’ - it is typically in market swings like we are experiencing. 

Comments

One Response to “An Employer’s Market”

  1. Economic slowdown is a good time for training : Recruiting Nevada on March 5th, 2008 4:28 pm

    […] Our last career fair had a drop in employer participation.  Why?  Because when there are more unemployed folks on the streets, there is not as much of a need to advertise.  Candidates are applying for jobs not even advertised…because they need the work.  This validates my jobseeker~employer marketplace analysis. […]

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