How Unemployment Rate Influences Recruitment
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How Unemployment Rate Influences Recruitment

In Recruitment industryTalent acquisition |

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On November 6, 2017

The economic goal for any country is to achieve the lowest unemployment rate. That would be great news if the rate shrinks to the lowest point. This impacts the economy, the career development and the quality of life. But how does this curve influence the recruiting market? The low Unemployment rate can even have negative consequences? No one can even imagine the negative impact associated with such a positive term. The fact is it does, only for recruiters. Let’s get into details how that could give tough time to recruiters in their talent hunt journey and how does the scenario change the recruitment industry.

The Power Game:

The unemployment rate and recruitment have a very strong connection impacting the quality of jobs for the desired talent. It’s an indirect relation between both the terms. The unemployment rate statistics do the effect in, either way, being lowest or highest.  Both will have different outputs to the recruitment industry. To be more precise the fluctuating curve defines the power shift between recruiters and job seekers. The two extreme ends of the curve hold the game-changing capability to the recruitment industry. It’s either recruiters or job seekers ruling the industry. The power shift is playing an important role in the industry.

High Unemployment Rate Refers To Recruiter’s Strong Position

Firstly let’s have a look at the high unemployment rate which the society is going through and probably the most challenging issue to handle for the economy. Every year thousands of graduates are stepping in for job search. Comparatively, there are fewer opportunities to accommodate. Be it the fresh talent or the experienced ones. Both are struggling with the job search. While this makes the candidate’s position weak in the industry, on the other hand, the recruiters will get over the game. They are in power to make selections from the long queues. For a single job opening, they may receive several entries, out of which many are highly qualified. This creates the competition for the candidates; they have to struggle and a minor preference over the skill or experience may get them or lose them the job. The recruiters will play an active role and job seekers are just being drawn by the flow. The higher the unemployment rate, the lower would be the quality of life.  The stronger would be the competition, the weaker would be the jobseeker’s position and the chances of employment. Concluding, the strongest would be recruiter’s position and power game.

Low Unemployment Rate Refers To Jobseeker’s Strong Position

The lower unemployment rate makes the jobseekers lead the recruiting industry by keeping them in power. This scenario creates hurdles for the recruiters to find the top talent. Because the new talent is no more suffering from joblessness. Gone are the days when highly qualified candidates have to settle for less than what they deserve and they are needed to do the odd jobs.  Because low unemployment rate means, more job openings and opportunities for the candidates. The job seekers are having options to choose from. They don’t have to sell their talent as hard as they had to when the rate was higher. The recruiters will have a tough time to attract the talent which is of high demand in the industry. Recruiters must have to stand out to make their brand name strong to be selected by the desired talent. They must offer some appealing packages to eliminate the chances of rejection. This is how the power shift shuffles the professional attitudes between the two.

 

Unemployment

Image Source: http://www.numbernomics.com/nomicsnotes/?p=7268

 

Let Opportunities meet the Talent

The above image illustrates that the era from 2009 to 2013; the unemployment rate was higher comparative to job openings.  Gladly we can see a drastic drop in the curve in the early 2016’s where the opportunities are meeting the job seekers on an almost same level. This is how the ideal recruiting system is supposed to be. The bottom line is to create an equal number of opportunities for job seekers and make them meet the right candidate, at the right time without any hurdles or shortcuts, with full transparency and dignity. Let’s make the industry a better workplace.

Last modified: April 3, 2018

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