This week's Week in Review: How the recession is affecting global jobs and wages; What one industry is doing to combat business volatility; And, results organizations are seeing from their Talent Management initiatives.
1. With Jobs Scarce, Age Becomes an Issue (Wall Street Journal)
A recent article in the New York Times discussed the increase in age discrimination complaints amongst the 45 and older crowd-but for younger workers in their 20s and 30s, it appears they may have just as much to fear. In an effort to avoid age-discrimination lawsuits, employers are adopting legally defensible layoffs based on tenure and "last in, first out" justifications. Labor Department statistics support this point-the unemployment rate for the 25 to 34 year old age group was 9.6% in April 2009 compared to 4.9% last year (versus 6.2% in 2009 and 3.3% in 2008 for those ages 55 and older).
2. In Japan, Secure Jobs Have a Cost (New York Times)
Recently released statistics show that Japan's economy suffered its worst contraction since 1955 this quarter. Yet, the unemployment rate in April was 4.8%--a far smaller percentage than the United States or the European Union. Policies and laws that promote lifetime employment, which originated in Japan's post-WWII economic boom, previously contributed to Japan's economic growth. But today, these same policies may not keep businesses afloat since keeping people employed means cutting wages (which could reduce consumer spending), shutting younger people out of the labor force, and increasing use of temporary labor that can be laid off more easily.
3. Figures Show Early Signs of Steep Slowdown in Wages Growth (Trading Room, Australia)
According to the Australian Associated Press, official figures in Australia signal a slowdown in wage growth. These figures are in-line with other industry indicators hinting that a reduction in hiring is under way. There is worry that if slow wage growth continues, households may reduce spending and potentially extend the recession.
4. Railway Keeps Its Furloughed at Hand (Wall Street Journal)
The U.S. rail-shipping industry learned from its workforce reduction mistakes in 2004: when their business sharply improved following the dot-com bust and 2001 terror attacks in the U.S., they were unprepared and understaffed to manage the increase in shipping volume. To ensure they have adequate staffing in place to manage possible business volatility, industry players are keeping part of their furloughed employees operating on a retainer by providing partial wages and full benefits to these workers. By doing so, the rail-shipping industry can keep the skills of its employees fresh and bring workers back in a shorter time period.
5. A Solution's Evolution (HR Executive)
While talent management strategies and technology solutions have been quite the buzz in the past several years, a recent survey by HR Executive and Knowledge Infusion shows that organizations are experiencing lackluster success in measuring talent management, and thus not receiving the enterprise support needed to advance in these areas. Organizations continue to adopt best-in-breed technology solutions (e.g., applicant tracking systems), rather than purchase a single platform that provides a suite of talent management products that may not meet all their business requirements. Another trend in talent management is fueled by interest in social collaboration-while many are interested in this area, social collaboration technology (i.e., Web 2.0) for the enterprise remains largely uncharted territory.
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