The Job Market Is Increasingly Convoluted
TL;DR
Job hunting sucks and it’s only getting more difficult, with 32.60% fewer available openings than two years ago. Compounding the issue, the length of the recruitment process has hit an all-time high.
If you’re one of the millions of workers looking for a job, we feel your pain.
According to Forbes, 70% of job seekers now report their current job search is more challenging than their last one, and the duration of hiring is at an all-time high, with the recruitment process now averaging 43 days.
That’s obviously bad news to the 7.42 million unemployed Americans, especially when you take into account how there are 32.60% fewer job openings now than there were in 2022:
But with the economy remaining strong, evidenced by eight consecutive quarters of GDP expansion, and average annual salary up to $59,384 in 2023 from $56,316 in 2022, Americans should feel good about the state of the job market, right? Wrong.
And there’s no single reason why. But today, we’re going to explore a few of them and try to figure out why so many people are unhappy with their jobs (perhaps because 8.236 million of them are forced to work more than one) and why it’s so difficult for those who are searching to land their next role.
Ban on Noncompete Agreements Blocked
The FTC’s ban on noncompete agreements was widely celebrated earlier this year. It would have removed barriers that empowered workers to find better jobs (and better-paying jobs) without the risk of facing legal repercussions by former employers.
The FTC estimated that the action could result in 8,500 new businesses each year, raises for workers (an estimated $524/year for the average worker), lower healthcare costs (savings of up to $194 billion over the next decade) and a boost to innovation.
It sounded like a pretty good deal for the average American. But in case you’re new to this country, here’s how it works: Average Americans are latrines for the powers that be. And anything that could even remotely disrupt that imbalance is deemed unfit for our society.
- Affordable housing? Not on their watch.
- Accessible homeowners insurance? Lol.
- Healthcare that doesn’t preclude those with pre-existing conditions? Dream on, socialist.
- Food prices that aren’t outpacing inflation? Get f*cked.
In the same vein, the ban on noncompete agreements is likely to suffer the same fate. Three weeks ago, Ada Brown — a Trump-appointed judge in the Northern District of Texas and actual human wet blanket — blocked the ban that would’ve helped 30 million Americans (1 in every 5 workers), from industries spanning nursing, fast food and engineering.
With companies aggressively expanding noncompete agreements to now even include low-level workers who don’t have access to trade secrets, blocking the FTC ban will have long-lasting repercussions for the job market.
Gender Pay Gap Widens for 1st Time in 20 Years
Back in May, we reported on the so-called motherhood penalty. But for all working women, the issue just got worse.
Over the past year, mens’ median earnings rose 3% last year compared to 1.5% for women, marking the first significant widening of the gender gap since 2003.
So as new (and better) jobs become harder to come across for all Americans, for women, the search can be even more challenging.
That’s because over the past year, the median woman working full time earned only 83% of what her male counterpart made.
And when factoring for educational attainment, the challenges are magnified. Among people without a high school diploma, 54.6% of men were employed over the past year compared to just 30.6% of women.
Research conducted by the University of Chicago Booth School of Business recently found that women are, on average, 30% less likely to be called for a job interview than men, and for executive positions, they are 28% less likely to be hired than men.
White-Collar Jobs Are Flatlining
Earlier this month, the Financial Post reported that the job market for Americans holding a bachelor’s degree or higher seeking employment offering above-average wages has flatlined.
Data shows that payrolls in these sectors peaked in May 2023. And unsurprisingly, competition for the remaining openings is fierce.
These are jobs that, according to LinkedIn, saw between 50 to 75 applications two years ago … and now receive between 500 and 1,500.
Meanwhile, the recent wave of layoffs that followed the Great Resignation from 2021-2022 have left white-collar companies disproportionately understaffed with HR professionals.
The result is fewer workers in employee services roles attempting to vet more candidates for fewer jobs, and for those who qualify, they have to endure a series of interviews — sometimes upwards of six or seven.
Takeaways
We’re not going to get into other factors like geopolitics or AI. But from the few we discussed above, there’s plenty of evidence why Americans are feeling increasingly less confident about the job market.
But as we always aim to do … lemons and lemonade. Rather than filtering for jobs on LinkedIn that only have the (lazy) Easy Apply option, make a short list of jobs that you want to take the time applying to.
Even though not all jobs require them, craft a tailored cover letter. And in that letter, be sure to use keywords from the job posting showing that your qualifications can satisfy the requirements.
And it might be “old school,” but if you are offered an interview, follow up afterwards and thank them for the opportunity. It’s a small thing to do, but it can leave a big impression and be the difference-maker between you and another candidate.