How The Global Financial Crisis Has Affected The Job Market:

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The global economy has been decelerating, especially when the prices of raw materials, such as oil, began rising at a ridiculously fast rate. From that year on, the world has been experiencing a huge financial crisis, affecting many sectors, including lowly workers and fresh graduates who are seeking for jobs.

The economic crisis has a great effect on the job market as most companies are resorting in financial prudence, and cutting costs by firing labors. The profit of the companies has decreased, and their solution to that is to cut wages to avoid further profit losses. Thus, the three obvious effects: the increased layoffs, zero job vacancy, and higher unemployment rate.

Apart from the generalized effects, here are some things to be expected:

 

  • Lower salaries and fewer perks – companies have started to lessen the perks (or benefits) and salaries they offer current employees. And if ever they are hiring new applicants, lower compensation packages are proposed. Some companies already cancelled the one-time bonuses, planned raises, employee outings and conferences, and at the same time limiting company car usage.
  • More worker responsibility – because there have been lay-offs, the average number of employees in a company has greatly decreased. To cover the lack of manpower, employers add more responsibilities to their workers’ shoulders, even if the job is way far from their original job descriptions. Even supervisors are now asked by managers to do some out-of-line jobs just to keep the wheel rolling.
  • Less foreign workers – there are stricter regulations when it comes to foreign workers. Governments of different countries are now doing their best to “force” companies to hire their local workers. For instance, in the US where health workers such as nurses and caregivers came from other countries like the Philippines, the government is now asking hospitals and nursing establishments to hire Americans or US citizens.
  • More students – because they know the chance of employment is low, students tend to add more years to their studies. A huge percentage of laid off workers are now back to school, as well; studying a new field of expertise, or whatever they think would have a higher employment demand.

 

Moreover, balancing off the deflating job demands on certain fields are new opportunities in nearly unexpected places or areas of expertise. Most laid-off workers are now training for more in-demand job positions, such as food service crews, medical transcriptionists, virtual or online assistants, CAD designers, and more. They are lucky to find a place in fields that are “immune” to economic crisis.

At present, more and more youths are choosing a wiser path. They study about areas that seem resistant to any bouts on the economy, such as the information technology and the Internet. Some of them resort to studying expertise that is known to have higher demands but with dwindling number of candidates. One example of this is mining engineers. A tip to the younger ones: nowadays, having an additional degree is not as impressing as having a certificate and skills in a high-demand, more modern field.