As the Baby Boomer generation ages into retirement, there will be continued growth in industries and occupations related to caring for that demographic as they grow older, according to a report released last week by the U.S. Bureau of Labor Statistics (BLS).

The report, which looks at job growth between 2010 and 2020, also projects an overall 14.3% increase in total employment over the course of the decade, while noting that the outlook for the end of the decade looks more robust because the labor market has been so slow to recover from the recession.

Health care, social assistance, personal care and construction were identified as the industries that will have the fastest job growth over the ten-year period, although the BLS noted that the construction industry won’t regain all the jobs it lost as a result of the recession and the accompanying protracted slump in the housing market.

About a quarter of all new jobs created are expected to come from construction, retail and health care. According to the BLS, the four occupations expected to add the largest number of workers are registered nurses, retail salespeople, home health aides and personal care aides.

Meanwhile, the U.S. manufacturing sector is expected to continue to contract, according to the report. Federal workers will also shrink in number — the BLS projects the second-largest job loss in any industry to occur at the U.S. Postal Service, which is facing financial troubles and a struggle to adapt its business model as customers increasingly turn to digital forms of communication. (Farmers are projected to experience the biggest employment decline.)

The Bureau also looked at how employer requirements for worker education and training will change during the decade. The agency found that, although job categories that require some type of postsecondary education are expected to grow the fastest, more than two-thirds of all job openings are projected to be for positions that typically do not require any education beyond a high school diploma — jobs that usually garner lower wages and fewer benefits.

Concerns over a “jobless” recovery also dominated conversation at the 2012 annual meeting of the World Economic Forum in Davos, Switzerland, according to Wharton management professor Michael Useem, who attended the gathering. In an article for K@W, he noted that several participants referenced a recent McKinsey report that predicts the U.S. unemployment rate is unlikely to drop to pre-crisis levels before the end of the decade.

“Other participants singled out the soaring youth unemployment in the U.S. and U.K., where jobless rates have reached 20% or more,” Useem wrote. “When the moderator of one session polled its several hundred participants on whether 21st century capitalism was so far failing our 21st century societies, more hands went up in agreement than in dissent.”

Useem added that there were worries among attendees that the American financial crisis and the European struggles with sovereign debt have created  “a lost decade.” “Young people trying to enter the labor market for the first time during one of these crises may already be consigned to what another commentator deemed a “lost generation,” he noted.

Whether the U.S. remains technically in recession or not, January’s 9% unemployment rate certainly indicates ongoing recession-like conditions for anyone seeking a job. Given that, and how the economy has struggled to add jobs since the onslaught of the financial crisis, you might assume that it is a buyer’s market for companies that are hiring now. But, according to Wharton management professor Peter Cappelli, the high jobless rate, combined with a large pool of job seekers, presents a potential pitfall for those in the hiring process.

On the one hand, there are many qualified applicants in the job market. On the other hand, says Cappelli, “because so many people need jobs and are desperate, they are much more likely to apply for positions for which they aren’t completely suited and also for ones for which they aren’t completely interested.”

Cappelli also warns that today’s pool of applicants might not include the best of the best. After all, in a recession, highly qualified employees who are not in danger of being laid off tend to stick with their employers so that they won’t be the “new guy” at a new job, and therefore subject to layoff if the economy sours even more.

“Employees are more likely to stick around because there is greater fear of the unknown [during] downturns,” says Cappelli, who is also the director of Wharton’s Center for Human Resources. “If I moved to another company, how do I know that it isn’t in some kind of trouble that could lead to a layoff there?  And people are much less likely to move to positions that take them out of their networks, such as a move to another location, for fear that if they lose a job they won’t be able to find a new one.”

Cappelli recommends three tactics to help avoid these potential pitfalls:

• Develop comprehensive job descriptions:  According to Cappelli, “It helps to have clear job descriptions that will scare away candidates who don’t fit.” Now is a good time to perform a “jobs inventory.” Look at each job description and ask yourself if it’s relevant. Some jobs change over time, some change after mergers and acquisitions. And some were created especially for an incumbent who has long since departed. Make each job description as accurate as possible. That way, people who are unqualified won’t even want to apply.

• Beware of overqualified candidates: Of course it’s always smart to review a candidate’s qualifications relative to the job for which they are applying, but in grave economic times it’s especially important to keep in mind that there is always a risk to hiring overqualified candidates who have more skills or experience than the current job requires.  “It’s very attractive to think about hiring them,” says Cappelli, “and possibly underpaying for what they are truly worth. But it’s also likely that they will leave when the market picks up.” But he adds that it may make sense to hire such candidates, “if it is possible over time to redesign their job so that the requirements and the contributions can be expanded.”

• Establish clear criteria for all jobs: And stick to it when matching candidates to criteria. How much previous experience is required? How much training? What types of certification?

Most important, don’t rush to hire a candidate who is desperate to take any job. Make sure there’s a fit. According to Cynthia Hedricks, Ph.D., chief analytics officer at SkillSurvey, Inc., a pioneer in web-based reference assessment headquartered in Wayne, Pa., a key component for employers hiring within any economy is honesty.

“You have to tell them what the job entails,” says Hedricks. “If they have to roll up their sleeves, you need to tell them that. If you feel that someone’s previous job had more prestige, paid more or was more engaging than the one for which they are now being considered, you need to be honest.  If there is no room for career advancement, “ Hedricks says, “be up front about those expectations.” Otherwise, you’ll risk losing the employee the moment a better opportunity arises for them.

This article was created under sponsorship from American Express