By Sam Becker
The era of confounding economic data and indicators stretches on.
The latest jobs report, released Friday, shows that the economy added 336,000 jobs during September, leaving the unemployment rate at 3.8%, a sign that the labor market remains strong, despite fears that the Federal Reserve’s interest rate hikes and pervasive inflation would finally start to suffocate the economy. Those numbers are in line with the latest Job Openings and Labor Turnover Survey, released on October 3, which showed the economy brimming with 9.6 million job openings.
In short: There are lots of jobs out there, and lots of hiring being done, yet many job seekers are still having difficulty finding work.
A recent survey published by Aerotek—a staffing and workforce management company—finds that a whopping 53.8% of job seekers believe current economic conditions and the job market are “the most significant barrier or challenge in their current job search.”
The survey, which was conducted online during August, comprises responses from more than 1,400 job seekers and also finds that the number of workers who’ve been laid off in recent months tallied 6.1%, almost double from this spring. Further, more than 77% say their financial situation has gotten worse or remains unchanged from last year.
However, given that a majority of job seekers point to a tough job market as the top reason they’re having trouble finding a new position—and the recent economic data showing that there are still millions of unfilled roles and that employers are continuing to hire—there’s a clear discrepancy between what job seekers are reporting and what the data shows in regard to the labor market.
Bill Ruff, VP of strategic sales at Aerotek, says the data may be something of a mirage, as many job openings may not be what job seekers are looking for.
“For job seekers, an elevated number of job openings does not always equate to an elevated number of real opportunities,” he says. “There could also be a misalignment between those looking for work, the jobs available, and what work they’re willing to accept. All of these factors have made it harder than ever for companies and talent to match with each other, and it’s what makes staffing partnerships so valuable for both parties.”
Ruff’s comments may ring true. Aerotek’s survey does show that more than 86% of respondents said that pay was an important motivator in their job search, while almost 71% of them said they did not receive a pay raise based on inflation over the past year. Workers may simply be unwilling to take a new role that doesn’t equate to an adequate bump in earnings—which may be a necessity after two years of rising prices.
Job seekers are not a monolith
Other experts say that it’s difficult to draw conclusions on a broad scale, as a job seeker’s motivation for taking a job or not taking one can vary wildly.
“Although there are still 1.5 job openings for every job seeker, securing a role depends on individual circumstances,” says Amy Glaser, SVP at staffing agency Adecco. “For example, as we continue to see companies mandating ‘back to the office’ days or even a full return, some candidates are hindered from applying to such roles as they search for select remote or hybrid work.”
Glaser also mentions that other variables—notably, workplace flexibility—may be keeping workers on the sidelines. “For the first time, we are beginning to see signs that flexibility in terms of work hours and scheduling [is] outweighing what has historically been the number-one driver: salary and wages,” she says.
Zooming out, economists say that September’s surprisingly strong jobs report resets expectations for what’s ahead.
“The labor market picture looks very different from last month, when it appeared that job growth was slowing to a more sustainable pace,” said Gus Faucher, chief economist of the PNC Financial Services Group, in a statement provided to Fast Company. “Over the past three months, job growth has averaged almost 270,000, about double the long-run sustainable pace.”
He adds that the strong numbers increase the likelihood that the Fed will increase interest rates again next month.
Glaser says that despite increasing rates and a labor market that appears to be tightening, “we expect to see growth in the jobs market for the remainder of the year.” She adds, “Industries tend to experience job gains at varying times throughout the year. However, we’re optimistic for job seekers as we gear up for peak holiday shopping season, when we expect industries like retail, supply chain and logistics, and others to experience a surge in hiring demand.”
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