The global job market may not regain its pre-crisis level for at least five years, the International Labour Organization said this week. This prediction has significant consequences across the whole of society, as well as in the employment screening industry specifically.
“We have reached the moment of truth,” Raymond Torres, director of the ILO’s Geneva-based International Institute for Labour Studies unit, said in an e-mailed report this week. “We have a brief window of opportunity to avoid a major double-dip in employment.”
More than 200 million people globally are out of work, a record high, as almost two thirds of advanced economies and half of developing countries are experiencing a slowdown in employment growth, the group said. While the world needs to create a net 80 million new jobs over the next two years to get employment back to the level before the financial crisis in 2008, the recent weakness in the global recovery means only half that number will be created, according to the ILO.
In the United States, the unemployment rate currently sits at 9.1%, with 14 million Americans out of work. One significant repercussion of unemployment internationally is social unrest, which we are currently seeing with the ‘Occupy’ movement. Hundreds of cities and thousands of people have been a part of the Occupy protests, with lack of job opportunities being a key issue among many participating.
But what does this mean for employment screening?
Unemployment always has consequences when it comes to employment screening, and the current problems are no different. When many are unemployed and there are more individuals applying for vacancies, businesses are in a position of power. They have a bigger choice when it comes to making hiring decisions, and can be a lot more picky in choosing who to employ.
What is a difficult situation for many actually puts businesses at an advantage. Part of making more astute hiring decisions often results in more stringent employment checks. More thorough background checks allows a business to ensure they hire the ideal applicant who ticks all the boxes. This leads to better protection of each business from hiring risks, and a more stable future.
It’s always a good time to start protecting your business, and now is no different. So if you are in a position to make more accurate and effective hiring decision, get in touch with Mind Your Business today!