By Guest commentary Friday, October 18th, 2024

By Vlad Vaiman

In a fast-changing labor market, a concerning trend has emerged — an increasing proportion of highly skilled professionals are finding themselves out of work. 

This rather interesting, but disturbing conundrum, underlined in a recent Korn Ferry study, emphasizes the difficulties experienced by skilled professionals in a number of industries as they struggle to find work in an otherwise vibrant job market evidenced by low general unemployment. 

Several factors contribute to this problem, including “stockpiling” talent by companies, conservative recruiting practices, the growing integration of artificial intelligence (AI), and a cautious attitude toward filling full-time roles in the post-pandemic world.  

Let’s now look at this situation from two perspectives — one is that of an organization, while another one is that of a job seeker.

HESITANCY IN HIRING

Organizations today continue facing a serious challenge. 

On the one hand, there is a clear, continuous demand for talent to fuel growth and innovation. 

Many organizations, on the other hand, have adopted more conservative hiring methods in response to perceived economic uncertainty and the rapid pace of technological change. 

This has resulted in a phenomenon in which businesses keep a core group of employees (a sign of good retention management in action!) while being hesitant to engage with new workers, particularly for full-time positions. 

Instead, they rely on part-time, freelancing, or project-based work to meet their growing demands. While this strategy appears to be cost-effective, it adds to an increase in the number of competent individuals who remain unemployed or underemployed.

HOW AI PLAYS A ROLE

AI’s role in hiring has proven to be a double-edged sword. 

While AI can speed up recruiting by quickly sorting through large quantities of applications, it might also unintentionally exclude qualified individuals who do not completely match the algorithm’s requirements (e.g., keywords or key phrases used in job ads describing the position). 

When companies rely excessively on these AI tools, they run a risk of disregarding individuals who have excellent skills and abilities but have not optimized their resumes for AI systems. As a result, many qualified experts may be accidentally excluded from the recruitment pool altogether.  

In addition, in this post-pandemic job market, some employers tend to take a more guarded approach to hiring. 

The economic uncertainty caused by the pandemic has made businesses reluctant to commit to more full-time employees. 

This shift has left many highly talented professionals in a precarious situation, unable to find stable, long-term employment. 

These developments have resulted in a group of so-called “unemployables” — people with great credentials and expertise who find it difficult to re-join the workforce.

DEALING WITH THE ISSUE

Employers can use a variety of strategies to deal with this issue. 

First, they can revise recruiting methods to ensure that qualified individuals are not inadvertently excluded.  

This could mean diminishing reliance on AI tools for early screenings and instead introducing a more holistic approach to the recruitment process. 

By doing that, companies can ensure that talented persons are not overlooked due to technicalities.  

Investing in ongoing learning and development programs is another critical element. 

As AI and other technology evolve, so should the workforce’s abilities. 

Organizations should prioritize upskilling and reskilling activities to keep their workers relevant and agile. 

This benefits not just the individuals, but also the company by nurturing a more adaptable and agile workforce.  

Furthermore, businesses should embrace flexible work arrangements to better utilize available talent. 

This includes expanding the number of part-time, remote, or project-based positions available to competent individuals who might otherwise be unemployed. 

Organizations that embrace flexibility can access a larger pool of people and respond to their requirements more dynamically.

HELPING JOB SEEKERS

Moving on to highly skilled job seekers, navigating this difficult landscape necessitates a proactive strategy. 

One important option is to become competent in AI tools and technology applicable to their field. 

Understanding how AI works and how it is applied in hiring procedures allows job searchers to better position themselves as valuable assets to potential employers.  

Exhibiting the capacity to work with AI can significantly improve employability and make potential employees more appealing to companies looking to embrace modern technologies.

Another important strategy is to optimize resumes so that they align with the requirements of AI systems and tools. 

This entails customizing resumes with precise keywords and phrases that AI algorithms are trained to “like”.  

By doing so, job seekers can improve their chances of passing initial screenings and being discovered by hiring managers. 

To guarantee that resumes appeal to both AI systems and human recruiters, there must be a balance of human and machine-readable material.  

In addition, it is important to remember that professional networking sites like LinkedIn do play an important part in current job searches. 

However, job searchers should use these channels intelligently by developing a strong professional brand, engaging with industry-related postings, and networking with important influencers and decision-makers in their sector.

To summarize, the increase of the “unemployables” in today’s labor market poses a difficult dilemma that necessitates collaborative efforts from both employers and job seekers. 

To capitalize on the available talent pool, organizations must reconsider their hiring methods, invest in talent development, and adopt flexible employment arrangements.  

In the meantime, job candidates must adapt to new technology, enhance their resumes for AI, and carefully navigate professional networks. 

By addressing these concerns both proactively and assertively, companies and individuals can better understand the changing job market and open up new avenues for growth and success.

Dr. Vlad Vaiman is a professor at the Cal Lutheran School of Management.