3.6% National Unemployment Rate Projected by December 2019
When the economy is great, it’s hard to remember the insecurities of the downward trends where corporate training is one of the first line items to be cut. Just like you should have your 1-minute elevator pitch ready and you should have some facts to back them up.
Ready. Set. Go.
Last year, on May 1, 2018, the Work Institute released its 2018 Retention Report. After analyzing data from over 234,000 exit interviews, they projected 2018 turnover would be 42 million (25%) US employees. They determined that over 75% of the 42 million would have been preventable. The report estimated that 2018's turnover expense would be approximately $600 billion and could increase to $680 billion by 2020. You know why? Turnover costs money. It’s expensive to hire, train, and make-do until the replacement employee is profitable—many estimate 50% to triple the salary of the employee.
Employees leave when companies do not invest in their careers. The training in need bridges the skills gap and fills posts from within.
This year, April 8, 2019, in the article, “Job Creation: Unremarkable Numbers Are Reassuring,” Kiplinger's staff economist David Payne projects that the national unemployment rate will decrease to 3.6% by the end of 2019. He also notes that the "short-term unemployment rate (those unemployed for less than six months) is close to its lowest level since the Korean War in 1953."
Since we are well under the natural unemployment rate of 4.5 to 5%, hiring replacement employees will be more competitive in salary and benefits and harder to find. Retention is better. Training to keep staff is key.
Written by Susan Wines, Digital eLearning Specialist