Government savings through investments in career transition services are significant, with every dollar spent potentially yielding a return of $2.60, according to research findings.
In the face of the unprecedented challenges posed by the COVID-19 pandemic, career transition services have emerged as a vital lifeline for workers displaced by the crisis. According to a report by LHH and the World Employment Confederation, these services have played a crucial role in helping individuals quickly re-enter the labour market and adapt to the changing job market conditions.
The global labor market suffered a significant blow during the pandemic, with an estimated 255 million full-time jobs lost in 2020 alone. This translates to an 8.8 percent decline in global working hours, as reported by the International Labour Organization, a United Nations agency.
Governments around the world responded by borrowing a staggering $19.5 trillion to battle the health and economic consequences of the pandemic. This massive debt has made governments more indebted than at any other moment in modern history, including the massive debts accrued during World War II.
However, Bettina Schaller, President of the World Employment Confederation, notes that any positive contribution that alleviates some of the burden being carried by taxpayers is important, especially during times when governments are struggling to both fight a public health crisis and sustain their economies.
One such positive contribution comes from career transition services. For every dollar private employers spent on LHH career transition services in 2020, government treasuries saved up to $2.60 in economic support for individuals.
These services offer comprehensive, adaptive, and empathetic interventions tailored to the unprecedented challenges of the pandemic labor market. They accelerate job placement by providing outplacement support, coaching, skills development, and career counseling. They focus on reskilling and upskilling, allowing workers to pivot towards growing sectors or roles that were less impacted by the pandemic, thus enhancing their employability.
Moreover, career transition services provide emotional and psychological support, addressing the stress and uncertainty caused by sudden job loss. They also emphasize the importance of leveraging data and collaborating with governments, employers, and employees to tailor support programs effectively during the crisis.
By facilitating faster and more successful re-employment outcomes, career transition services contribute to economic recovery efforts by reducing unemployment durations and facilitating workforce adaptability. Maintaining work and employment is crucial for building a sustainable new normal, as Schaller stated.
This article was authored by LHH's Murielle Antille and Greg Simpson. It underscores the significant impact of career transition services on job loss recovery during the COVID-19 pandemic and reaffirms their importance in helping displaced workers navigate the challenging times ahead. People who have access to these services spend less time unemployed and often land new jobs that pay as much or more than they earned previously.
In light of the colossal debt accumulated by governments to combat the economic impact of the COVID-19 pandemic, workforce solutions like career transition services have become vital, offering savings for government treasuries through reduced need for economic support. By focusing on reskilling, upskilling, and job placement, these services contribute to economic recovery by reducing unemployment durations and bolstering workforce adaptability. Additionally, these services provide essential emotional and psychological support during uncertain times, making them indispensable as general-news outlets cover the challenges faced by the workforce. When implementing investing strategies or monitoring business trends, it is crucial to consider the significant role of career transition services in the post-pandemic workforce landscape.
