Flip Side of the Coin: Recovery Woes

Now a shortage of entry level, qualified applicants, out of market recruiting and retention of current workforce are among the flip side issues of the recovered Sacramento employment market. Conducted since 1992, The Quarterly Employment Trends revealed in Q3 2007 that eleven percent (11%) of Sacramento employers polled were laying off workers, thirty-two percent were (32%) hiring no one and forty-nine percent (49%) sought only replacements as the ‘Great Recession’ worsened.  That was then.

In Q3 2016 forty-six percent (46%) of hiring is for growth or expansion of the Sacramento regional workforce and sixty-seven percent (67%) of companies polled directly by phone say they are hiring in July, August and September. While expansion is the largest motivation for hiring in the next three months, Sacramento’s regional employers are also seeing employees leave for other opportunity.  Thirty-eight percent (38%) attributed replacement needs in their search for workers in the third Quarter of 2016 in the Sacramento region.

Who? What? When? Where?

Pacific Staffing discovered in talking with Sacramento’s top regional employers between May 23 and June 24, that major hiring challenges include shortages of entry level workers and specialized qualifications. Specialties in demand by employers included IT/Information Technology; including programmers, developers and networking backgrounds, unmet demand for experienced sales talent and Class A drivers who can pass drug and background tests.  Construction industry companies in particular are finding few skilled trades workers; including carpenters, plumbers, electricians, HVAC and equipment operators available.

Seasonal workers for hospitality, recreation and agriculture needs was noted by fourteen percent (14%) of those polled on hiring. No layoffs were planned in Q3 among companies surveyed.

Workforce Challenge?

Companies were also distressed at the lack of applicants with electro-mechanical skills to keep electronic management in synch with mechanical processes for distribution, assembly and production lines. Others noting a lack of entry level applicants for positions like general office/clerical, customer service and finance jobs. In anecdotal comment some report seeking workers out of market to meet immediate needs amid concerns about growing wage pressure in Sacramento, overtime changes and future minimum wage increases.

How does this Quarter compare to last Quarter, or last year?

View past Sacramento Employment Trends Reports.

Sacramento Regional Top Companies Polled By Industry:  

  • 37% Service
  • 34% Manufacturers
  • 20% Construction
  • 9% are Retail

Media contact: Rick Reed 916-704-0080/ info@rickreedpr.com