What new L.A. employment stats mean for job seekers: Guest commentary
By David M. Smith
The most recent unemployment data for Los Angeles, released by the state Economic Development Department on Sept. 16, offers a mixed picture for job seekers.
On the bright side, the unemployment rate of 4.9 percent for the Los Angeles-Long Beach-Glendale metropolitan region is significantly lower than this time last year (6.4 percent). It is also much lower than the state unemployment rate of 5.5 percent.
Optimists would add to the “good news” column that an estimated 24,000 Los Angeles job seekers have re-entered the job market. The addition of these individuals, especially those who dropped out of job hunting during the recession, is a strong indicator that the recovering economy has buoyed the hopes and prospects of legions of formerly “discouraged workers.”
But there is some trouble lurking in the numbers, because this month’s 4.9 percent unemployment rate represents an increase from 4.8 percent from the prior month. Even though the increase is slight, once it’s combined with tens of thousands of newly invigorated job seekers, the number indicates that it will be tougher than expected for some people to land a new job in Los Angeles County.
Professionals, particularly those 75 million Americans in the millennial age group, might be feeling disheartened by emerging from a prolonged downturn only to find stiff competition for entry-level jobs and limited career growth.
In my role as a business school dean and labor economist, I am asked by soon-to-be-graduates for my point of view on the labor economy and job market. Given this new data and its implication for young job hunters, millennials may want to consider certain factors that can better position them to enter the job market:
• Don’t pigeonhole your education. When I was in school, the curriculum was mostly limited to our field of study. Students today can benefit from extensive offerings that align with the workforce of the future. You can achieve a sharply focused education and at the same time hone related skills. For business education, that might include learning how to harness digital technologies, implement organizational change and leverage sustainable and socially responsible initiatives to increase profitability. While you’re at it, throw in a cooking class and play on a sports team. There’s more to education than a classroom, and a well-rounded background is more attractive to a hiring executive.
• Get a global perspective. In his recent book “The Seventh Sense: Power, Fortune and Survival in the Age of Networks,” author Joshua Cooper Ramo suggests we are operating in a time of great change as significant as the Enlightenment or the Industrial Revolution. Rather than be left behind by reliance on outdated systems of power, Ramo proposes that it is critical that we understand the power of the new age of networks — the “seventh sense” — which impacts and shapes the economy, political dynamics, trade and even human society.
How do you gain a perspective that aligns with the global terrain? Start by valuing diversity in approach and opinion, being culturally and linguistically sensitive and seeking to integrate globalized learning into your outlook. Study abroad programs offer the opportunity to immerse one’s self in globalized entrepreneurship. Many degrees, like many of ours at Pepperdine Graziadio School of Business and Management, require international internships so that students can better appreciate globally diverse business systems. In the newly networked world, cross-cultural business skills will give job hunters a leg up on other job applicants who have limited themselves to more traditional structures.
You may get discouraged, but don’t give up. One of the reasons our unemployment rate has been declining is that many workers have run through their unemployment benefits and have dropped out of active job hunting; their numbers are not reflected in the unemployment data. As the economy is improving, these workers are jumping back into the workforce making it harder to secure a position for millennials — especially when competing against seasoned skilled workers.
But finding a job is not impossible. Many employers tell me that they admire and see great value in hiring people who are humble and hungry. Don’t be too proud to intern, volunteer or start at a job that you might have considered below your skill set. Work hard and you’ll create a springboard for the future.
There are signs that it will be a bumpy path until job demand steadily matches the supply of workers. The U.S. Bureau of Labor Statistics released national data on Oct. 7 showing that the unemployment rate increased from 4.9 percent in August to 5 percent in September. The uptick in the unemployment rate expanded the labor force by 444,000 people. State trends mirror national trends, so I expect to see a similar finding when California data releases on Oct. 21.
That said, my advice is to let the politicians and policy makers fret over the month-to-month numbers. Job seekers are better served looking at how they are positioning themselves in the job market for the long term.
David M. Smith is dean and associate professor of economics at Pepperdine Graziadio School of Business and Management.
