Record High Job Openings – So Where Are All The Applicants?

The number of available jobs in the U.S. is at a record-breaking high and unemployment is still significantly elevated, which begs the question … where are all the job applicants?

After a year of record high job loss, and efforts to reopen our economy, we are seeing a significant number of job openings this year. Employers last month added 559,000 jobs on top of 278,000 in April, led by openings in hospitality and food services. Postings on job search sites like Indeed have also surged above pre-pandemic levels.  With nearly 10 million people being classified as unemployed (ie, meaning they are actively looking for a job) why are companies having such a hard time hiring? 

There are a number of reasons as to why hiring is so difficult right now. One key factor is that, while tremendous strides have been made in the vaccination rollout and COVID-19 cases have been declining, the virus is still circulating and only half of adults became fully vaccinated.  People might not be ready to re-enter the workforce after 15 months of adjusting their lives and may need more time to “come to terms” with being physically close to other people.   In addition, many people continue to struggle with health issues related to COVID-19 as well as with other home-life matters such as child-care with schools slow to reopen.  

Additionally, with generous government relief efforts, many people are earning more from unemployment benefits than they did when they worked.  On average, anyone who previously made less than about $34,000 per year would receive more money by collecting jobless benefits than they would by returning to work.  Add to this that the labor pool itself was reduced over the past year with a significant number of women leaving the workforce to take care of COVID-19 related issues, and other workers retiring early during the pandemic.  

Many states have announced that they will be ending the expanded unemployment benefits this month and will issue regulations to strengthen requirements for people who are collecting unemployment checks to show that they are able and available to work. Some states are also incentivizing those who re-enter the workforce.  With these changes, along with other factors, it is likely that we will see a jump in hiring in the coming months.  

In the meantime, what are some things you can do to attract workers? You might want to try:

• Making the job more enticing – look at improving wages and benefits to be more competitive.
• Using sign on bonuses – offer a “sign on bonus” to the candidate who gets the position.
• Promote public health – make sure your candidates know that you are taking coronavirus precautions and that the health and safety of your workers are at the forefront.
• Using employee referrals – Incent your current team to refer open positions to their friends and family.  Your current employees are a great recruiting source for you.  
• Use social media including Facebook, Instagram, etc. to blast out open positions.  You can also send open jobs to your personal contacts on your phone – everyone knows someone who is looking for a job!

If you would like more information or need help recruiting candidates, please reach out to us today!