ACG Resources | Unemployment is high. Why is no one applying?

The job market has shifted tremendously in 2020. Frequently, hiring managers and decision-makers ask our team, “With unemployment being so high, where are all the candidates?” or “Why should I hire a recruiter when unemployment is so high? Can’t I just post the job and have my pick of candidates?” Let’s take a look at these questions.

The first thing we suggest is to look at the industry you are in. We are in unprecedented times and facing statistics and issues that are new to the economy. We had unemployment extended to people that generally may not have qualified under normal conditions. Due to the CARES Act, unemployment was extended out to independent contractors and those self-employed. These individuals usually would not be in your candidate pool or qualified. Specific industries did not experience high unemployment since they were deemed essential. The insurance and financial services industry had the lowest unemployment in September 2020, with 4.4%, below the average of 7.7%. The Leisure and hospitality industry had a high of 19% according to Statista.com.

The next question of why you need a recruiter in this market is to save you time and money. If you are paying to post jobs with no response or unqualified candidates, chances are you are paying per click or a subscription or a one-off fee to a job board. That money can be utilized to find passive candidates. In this market, candidates need convincing to entertain an offer, and unfortunately, companies cannot always reach these candidates. A professional recruiter can cold call and do reach-outs to candidates that a company may not necessarily be able to. When we look at our recent statistics, almost 90% of our candidates were found through active recruiting because they were passive. These candidates were not responding to job postings, but instead responding to our relationship and our approach. What is your time worth? Is it worth more to find candidates or to focus on growing your business and concentrate on other areas of improving the company? Everyone in life may have access to the same tools, but a professional and master of their craft knows how to use the tools most effectively.

Author:

• Greg Eidlen, VP/Partner, ACG Resources
• Contact Info: 212-566-7600 or INFO@ACGRESOURCES.COM

Compliments of ACG Resources – a member of the EACCNY.