Unemployment Rate by the Numbers

The unemployment rate includes all types of workers—construction workers, government workers, etc.  The unemployment rate is published by the Bureau of Labor Statistics, a division of the US Department of Labor.  The rate is found by dividing the number of unemployed by the total civilian labor force.  On May 6th, 2016, the BLS published the most recent unemployment rate for April, 2016 of 5.0% (actually it is 4.984%, down by .017% from 5.001% in March, 2016.

However, our clients typically hire us to identify, recruit and vet the industry’s top caliber management professionals and that unemployment rate in April was 2.1%(this rate was .3% lower than last month’s 2.4%).  In addition, clients almost always want these professionals to have a college degree and that unemployment rate for April was 2.4% (this rate was .2% lower than last months 2.6%).

If you average these two rates we have an unemployment rate of 2.25% for college degreed management professionals in the United States.

Now stay with me a little longer.  This gets better.  It’s important to understand (and none of the pundits mention this) that the unemployment rate, for many reasons, will never be 0%, no matter how good the economy is.  Without boring you any more than I have already, let me add here that Milton Friedman (the renowned Nobel Prize-winning economist), is famous for the theory of the “natural rate of unemployment” (or the term he preferred, NAIRU, which is the acronym for Non-Accelerating Inflation Rate of Unemployment).  Basically, this theory states that full employment presupposes an ‘unavoidable and acceptable’ unemployment rate of somewhere between 4-6% with it.  Economists often settle on 5%, although the “New Normal Unemployment Rate” has been suggested to fall at 6.7%.

Bottom line, these critical level professionals are highly accomplished, working and paid well. our clients want us to find a are well below the 4-6% threshold for full employment…we find no unemployment!  None!  Zilch!  A Big Goose Egg!

How do organizations recruit critical talent? Not by posting on job boards and websites. What I call post and sift that is done by human resources or talent acquisition. These highly accomplished professionals don’t apply for jobs. They take phone calls from people like our veteran search partners who are specialists in their fields of expertise, who leverage years of experience, industry knowledge and networks to quickly identify, recruit, vet and present professionals to our clients. That is how critical talent, the industries top 5-10% move from one job to the next.

Ascent Select is sought out by leaders who recognize the value of our executive search expertise and working with a collaborative Strategic Search Partner who provides customized search solutions.