Recruitment in Problematic Market Conditions: An Empirical Study : Recession vs. Demographic Change

Abstract:   ‟Recession‟ and ‟Layoff‟ were the buzz words of late 2008. Economic slowdown and recession have hit the economy hard. At the same time people in society are getting older and the demographic profile of the population is getting increasingly top heavy, with the retirements of the 1940‟s baby boomers expected to peak in 2010. The implications of an increased proportion of old people in society have been debated for some time, but the issue has not become a pressing concern for firms until recently. The purpose of this study is to investigate „How does the economic slowdown and the demographic change affect the recruitment behavior of the firms in the region?, the region being defined as the County of Jönköping and County of Östergötland in southern Sweden. The study is based on an exploratory survey polling respondents about their willingness to employ, the effects that the economic slowdown and demographic change exert on them. The survey was conducted during November 2008. The descriptive and inferential quantitative statistical analysis of the empirical findings and sec-ondary sources draw on contemporary research in the areas of demographic change, economic theory and human resource management. Demographic change is of less importance with regards to firms' willingness to employ than ex-pected and is overshadowed by the lack of skilled and experienced labour, which makes finding a suitable employment not so difficult, even in these recessionary times, if you have the right education, qualification and/or experience. It is hard to give a definitive answer as to how large the effect of the economic slowdown on recruitment is, but it does indeed affect the firms' willingness to employ, and it has generally negative consequences for the overall size of the workforce. Nevertheless, there remains a need for employees fed by the inextinguishable calls for competence and experience. With regards to the general recruitment behaviour, the firms face a dilemma. The weak economic climate commands cost savings. But the widespread call for and concurrent lack of skilled and experienced labour, both in the firms and in the labour market, command resources to be committed to the search for applicants. Furthermore, coping with the challenges of an agediverse workforce will be one of the most important commissions for anyone dealing with human resource management issues in the future.