At the end of November the Bureau of Labor Statistics reported an unemployment rate of 4.1% in the U.S. That is easily the lowest point it has reached in ten years. Because of this, it is getting more and more difficult to find talent. Recruiters are scratching their heads for ways to stand out and bring in the right people when most of the right people are already employed. With this continual decline in the unemployment rate, one question comes to mind. What is going to happen when the U.S. reaches full employment?
Full employment does not mean an unemployment rate of 0%. There will always be people not working that are frictionally, structurally, or voluntarily unemployed. Instead, it is any level of acceptable unemployment above 0%. Basically, it means that the economy exists without any cyclical or deficient-demand unemployment. Many argue that the U.S. has already reached full employment, or that we are well on our way.
There are a number of ramifications that will affect organizations as a whole with full employment. Wages will more than likely increase, and many efforts will turn inward in attempt to retain the employees that companies already have. In addition, the labor market could reach a point where each new job added does not create enough productivity to cover its cost, slowing overall growth. We can scare ourselves all we want with economic trends on a large scale, but at the end of the day the main concern is, how do you recruit someone when there is barely anyone to recruit?
Become the modern recruiter. Posting a job on your career website, a job board, or LinkedIn is nice, but won’t be enough to attain the few candidates that are out there. You need to leverage tools such as text messaging, live chat/chatbots, as well as artificial intelligence to attract more applicants and streamline your communication with candidates. When someone expresses interest in your company, you need to assure that it is as easy as possible to apply, and that communication is quick throughout the entire process. That way you can better your chances that your applicants turn into employees.
Whether or not we are currently experiencing full employment, the job market is looking pretty sparse to say the least. However, as a recruiter, that doesn’t mean it’s time to panic. Instead, just make sure you have the right tools under your belt to be the best recruiter you can be. After all, you know your job is the best one out there, make sure candidates can find it.
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