If you’re a recruiter, you can already feel it. The demand to fill a growing number of job openings is already here. Complicating things for your recruiting efforts is the fact that job seekers have more opportunities from which to choose. In short, you’re not the only game in town. Additionally, the improved job market has employees feeling more comfortable to move from passive to active job seekers.
If you are not yet a believer in the changing job market ahead and its effect on recruiting, here are five statistical trends that should change your mind.
Job Openings Continuing to Rise
The job openings trend across the nation has been steadily increasing since July 2009. From that time through October 2017 the total number of job openings has grown nearly 3 times larger. That means job seekers are looking at 6 million opportunities today when back in 2009 their job search would include just over 2 million jobs. That really puts incredible pressure on recruiters to differentiate their company as an employer.
The Quit Rate is Up
According to the Bureau of Labor Statistics, the number of people feeling comfortable enough to quit their jobs has nearly doubled since 2009. These individuals are quitting to accept a new position or feeling confident enough to quit without a new job on the horizon since there are plenty of job openings (as shown above) out there for them.
A Lower Participation Rate
Part of the equation for creating a sufficient talent pool to meet your recruiting needs is the number of individuals who qualify as a potential candidate but for one reason or another have opted out of the job market. In just the last 6 years, that number has decreased from 63.7% to 62.7%. Sounds like a small movement, but in combination with all of the other statistics discussed here, this has a big impact.
Lower Number of Layoffs and Discharges
There are always a number of individuals who are forced into the job market through layoffs and discharges. As the economy improves, the number of individuals affected is reduced. Hence, less talent is available for hiring in the “active” job seeker category. Unfortunately, these are what you refer to as the lower hanging fruit. This is a group that is much easier to recruit and makes your job all the easier.
Tax Changes Will Spur Pay Increases
Sometimes it just takes more money to entice individuals to stay in their current position rather than jumping somewhere else. With the newly implemented corporate tax structure companies are going to have more money to use at their discretion. Many times, they may have an opportunity to save an employee with a raise thus keeping that individual from entering into the job market.
If you want to see most of the statistics above in greater detail, go to the JOLTS Home Page on the Bureau of Labor Statistics website.
If you want more details on the 2018 job market and how you can conquer its massive challenges, feel free to contact SCG Advertising & Public Relations.