Strategic Funds co-managing director Marc Lopresti and the CEO Evan Sohn of Recruiting.com Evan Sohn unpack the economic situation and the impact it has on hiring, following the positive May job report.

The most recent data on employment shows that the Great Resignation brought on by the pandemic continues with a record-breaking level in the amount of 4.4 million Americans leaving the workforce on April 1st despite the growing fears of recession.

A renowned expert explains the rationale behind the continual reshuffles and warns that the current shortages in the job market will likely last for a considerable period.

Workers leave at the marathon Galveston Bay Refinery on May 10, 2022, located in Texas City, Texas. (Brandon Bell/Getty Images / Getty Images)

Julie Bauke, founder and chief career strategist of The Bauke Group, has a great understanding of the viewpoint that both parties have regarding the relationship between employers and employees after more than 25 years of working in this field and believes that the changes businesses are witnessing today are multi-layered but mostly inevitable. COVID has accelerated them.

“There’s a mismatch between people and their skills and what they want to do, with the work that needs to be done,” Bauke explained to RRR Business and referred at the many elderly, well-trained workers who took early retirement because of the pandemic.

The called “boomers” left new generations of workers who aren’t willing to follow into the same mold as their grandparents and parents did.

“On top of that,” she said, “you’ve got this demand that greatly outstrips the supply, which gives the younger generation leverage – and they’re not afraid to use it.”

Lesley Williams quit her bookkeeping job at a lumber business in 2020 to take care of her grandchildren and her mother-in law. (Lindsey Wasson for The Washington Post via Getty Images / Getty Images)

Bauke claims that the high quitting rates are partly due to the irritability of employees as well as employers. Many workers who were enticed by salary increases were too eager to leave and then regretted their decision. Likewise, businesses that are too eager to get their hands into the workforce to fill vacancies have not chosen wisely in hiring.

A slowdown in the economic growth could reduce frustration from both sides, with employees willing to stay to their job due to fear of not being able to find a new one, while employers are easing up on hiring in order to reduce costs.

Even in the event of a recession, Bauke says, the departure of boomers from work place, coupled with a younger generation who are more eager and able to establish their own online venture rather instead of working in the service of “the man” means shortages are likely to continue.

A huge “Now Hiring” advertisement is displayed in the window of the Advance Auto Parts store in Bay Shore, New York on the 24th of March 2022. (Steve Pfost/Newsday RM via Getty Images / Getty Images)

“The number of people out there looking for traditional jobs is still less than the amount needed,” she stated. “I do not see that changing for a long time, frankly, if ever. Because you can’t all of a sudden birth a bunch of adults to take the job.”

Bauke suggests companies not just be thorough when selecting applicants, but also treat current employees as adults they are to keep them . This is a challenge for some companies to achieve in the current climate, in which remote working and various flexible options are attracting more candidates.

“The first thing you have to do is a novel concept called actually talk to your people and ask them what they want,” Bauke adds, noting that the top management can overlook employees’ demands. “You have to engage, you’ve got to go from the top down to collaborate and communicate with your people and get them involved in your solution.”

She said, “Your answers are among your people. They’re among the people doing the work.”