As the unemployment rate rises, it's taking Hoosiers longer to find a spot in a fiercely competitive market
By Dana Hunsinger
Posted: September 1, 2008Read Comments(10)Recommend E-mail Print Share Del.icio.us Digg Reddit Yahoo Google A A This Labor Day, some Hoosiers aren't so happy to have the day off.
That's because an increasing number of them don't have jobs.
Reeling from layoffs and downsizing as companies combat a volatile economy, more than 200,000 Indiana residents are unemployed, up 40 percent from a year ago, when 143,000 were jobless.
Those Hoosiers who are out of work are staying on unemployment longer because it's becoming more difficult to find new work quickly, economists and job recruiters said.
For the first three months of this year, the average length of time on unemployment in Indiana was 13.2 weeks, compared with 12.9 weeks a year ago, according to the most recent information available from the Indiana Department of Workforce Development. Forty states reported longer stints.
Consequently, the job market is becoming increasingly more competitive.
"You can't rely on your resume posted on a job board," said Randy Haubner, Westfield, who is in his fifth week of searching for a sales or marketing job after being laid off. "Networking is the way to go. You have to have that connection."
In Indiana, the average stint on unemployment now has probably lengthened to 15 or 16 weeks, said Michael Hicks, director of the Bureau of Business Research at Ball State University.
But Hicks said times aren't that bad, especially if you look back to the 1982 recession, when the unemployment rate hit 10 percent nationally. In July, the national seasonally adjusted rate was 5.7 percent, the highest in more than four years.
"From a historical basis, we're still in good standing," he said. "Yes, we've lost jobs, and it's taking longer to find jobs, but put that in perspective, and I wouldn't say this is something we should lose sleep over."
That's little solace to 200,000 jobless Hoosiers, including Haubner, who was the victim of downsizing at a local publishing company this summer.
"It's happening to a lot of people," said Haubner, 46, who was a vice president of marketing.
Since his layoff, he has made job hunting a full-time career, working from morning until night, sending out resumes and researching companies.
He can show measurable results to prove his skills. But he's finding it takes a bit extra to get hired in today's market.
Last week, Haubner had an interview for a sales position at the Wingate by Wyndham Hotel on Rockville Road. He's had several phone and in-person interviews in recent weeks. He's hoping to be officially employed by the end of September.
That may be easier said than done, even for outstanding job candidates. Employees and employers don't seem to be connecting.
On a scale of 1 to 5, workers rate the level of challenge in finding a job at 3.56, while employers rate finding qualified candidates at 3.47, according to a study done for staffing and consulting firm Robert Half International and job search Web site CareerBuilder .com.
"A dual hiring environment seems to be taking shape," said Max Messmer, chairman and chief executive of Robert Half International. "Job seekers in some fields are competing aggressively for open positions, giving employers the edge in those segments of the hiring market."
Job seekers on the rise
Although the number of job seekers is increasing, local companies say they are having a tough time finding qualified candidates.
"We do often talk about how bad the resumes are around here," said Bill Johnson, president of LeadJen, a sales and marketing company. "You'll get 500 resumes, and 490 list selling through the Burger King drive-through as their experience."
But Johnson, who recently hired a couple of new additions to his team, isn't suffering for candidates. In the past six months, he's noticed much more job networking taking place.
"I've had a lot more people call me and say: 'I have a friend looking for a job, I have a cousin, I have a friend of a friend,' " he said. "It really has been a big influx. It's probably doubled from a year ago. Why? Because the economy is a little tighter and a little tougher."
Indiana's adjusted unemployment rate in July hit 6.3 percent, topping the national rate.
Gary Abell, spokesman for the Indiana Department of Workforce Development, said the state was struck by extended seasonal temporary layoffs.
Many companies in the automotive and RV industries shut down for two or three weeks around the Fourth of July holiday. This year, many extended that a week or two, Abell said.
Deluged by resumes
The job-search deluge has been particularly noticeable at Columbus-based Cummins. In the past seven months, Cummins received 30,708 resumes, or 4,387 per month.
"(It) actually took me a bit by surprise," said Andy Pajakowski, Cummins' director of college recruiting and interim director for U.S. recruiting.
But he's not completely shocked. As other companies lay off workers, Cummins often sees those displaced employees migrating to Cummins for work, Pajakowski said.
For example, Michigan-based Delphi announced plans to lay off more than 10 percent of its salaried employees in Kokomo last month after a 32 percent drop in second-quarter U.S. sales. It affected about 300 workers, and Cummins watched the resumes pour in.
That puts Pajakowski in the driver's seat, with his pick of just the right candidate.
And he has some advice for workers on the job hunt. Be passionate about the job, know the company you are applying for and, if possible, get a referral.
It always helps to have your name recommended by someone at the company who is willing to stick their neck out for you.
"Instead of being one in a pile of 300 resumes, you are now one in a pile of 20," said Lynne Sarikas, director of the MBA Career Center at Northeastern University in Boston. "Networking is the most underutilized tool in the job search."
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