The unemployment rates continue to fall. In March the average unemployment rate in the US had dropped to 6%, well below the 14.7% in April of 2020 (although still above the 3.5% in February of 2020). This shrinking talent pool is putting pressure on recruiters. In addition, the recent extension of the $300 per week additional unemployment benefits through the end of September make it easier for employees to remain out of work. With the $300 additional unemployment benefit, over 50% of the unemployed are earning more with unemployment than when they were working their regular schedule.
Another impediment to rejoining the workforce for many of the unemployed is caring for their school-age children who are not yet back in school full-time. “This has put tremendous pressure on employers to find talent that is motivated to work,” says David Kopsch, principal of Mercer Career Business, especially in certain industries like retail and manufacturing. (1)
Also, the unemployment rate varies from state to state. In twelve states, the unemployment rate is under 4%, including Nebraska, Utah, Iowa, Kansas, Alabama, Wisconsin, and Indiana. On the other side of the spectrum, there are eight states with an unemployment rate of over 8%, including Nevada, California, New York, and Hawaii.
So, with unemployment dropping and already low in some regions, recruiting has become more difficult. Here are some ideas to consider from David Kopsch (1) to help make your organization more attractive to potential recruits:
- Ensure your pay is competitive within your industry and marketplace
- Offer a 401(k) plan (or equivalent) with a matching formula
- Fund a Health Savings Account
- Allow flexible work schedules based on employee availability
- Pay premium wages during surge times
- Create an attendance bonus program
(1) https://hrexecutive.com/why-recruiters-are-still-under-tremendous-pressure/