A couple of weeks ago, we talked about just how hot the job market remains. Last week, we looked at the number one reason employment in the plastics industry will remain strong, namely the explosion of reshoring and near shoring. There are other factors that will contribute to the tight labor markets. While quite a few baby boomers have retired, around 20 million are still in the workforce but plan to retire over the next 10 years.

To all the hiring managers out there: In the coming months you will probably experience what is commonly referred to as recency bias. If you are not familiar with that term, it is the tendency to place too much emphasis on experiences that are freshest in your memory, even if they are not the most relevant or reliable.

Over the past weeks and months, we have seen reports on inflation, the federal reserve raising interest rates, and jobless claims hitting an eight-month high. In the coming weeks and months, you will continue to see and hear things that might make you think you should put a halt to hiring.

There will always be “noise” along the way. Just remember the past two years when you could not find the people you needed. Most C-level executives had that at the top of their list of impediments to growth. We have a real opportunity for our industry to bring in top talent if we can summon the courage to look past the negative headlines.

I predicted that the unemployment level in this cycle, even with a recession factored in, would be no higher than the 5% range (it hit 10% in the 2009 recession). Goldman Sachs just predicted 4% and Bank of America 4.6%. In a market where we know labor will be scarce for at least the next 10 years, I say this will be an opportunity to “buy the dip,” not to panic and sell.

About the author

Paul Sturgeon is CEO of KLA Industries, a national search firm specializing in plastics, packaging, and polymer technology. If you have a topic you would like to see discussed, a company that is growing, or other ideas for this blog, e-mail Sturgeon at [email protected].