Evidence of US labor shortage emerges, “help wanted” signs in store windows with record numbers of Americans – 4.4 million – who left their jobs in September. Employers find that traditional ways of attracting new employees, such as increasing wages, are not necessarily effective.
The only thing that is more attractive to workers than anything else is remote working, said the managing director of one of the country’s largest job boards. And more and more, job seekers are getting what they want. But Ian Siegel, co-founder and CEO of ZipRecruiter, told Yahoo Finance Live it’s been a tough process for employers.
“Previously, we hypothesized that all of these workers were reluctant to return to work because they were afraid of getting sick, or because they didn’t have daycare or were receiving stimulus checks, or because they were ‘they didn’t have to pay their mortgages. . Literally all of the reasons we talked about are gone now, ”Siegel said.
But the workers are still not coming back. In addition to this record number of people who left their jobs two months ago, there is still a record close to 10.4 million open positions. Although hiring has intensified, with 531,000 workers added to US payroll in October, the country’s civilian workforce is still 3 million workers below its pre-pandemic level. Not to mention economists’ estimates at the start of the year that the economy would now create jobs at a monthly rate of $ 1 million. The participation rate remains near its lowest level since 1977.
“The employers’ response has been to effectively roll out the red carpet for these job seekers,” said Siegel. “They make all the stops they can think of. They are increasing wages. They offer an increased number of jobs with fringe benefits. They offer flexible hours. They literally offer newbie job seekers the chance to go to college and get paid.
“And yet, job seekers are still not coming,” he added.
The secret sauce, the magic ingredient, the offer that was the most attractive to future employees: the possibility of working remotely.
“During the pandemic, people discovered a new, more satisfying way of life. This is the number one benefit employers offer over ZipRecruiter, ”said Siegel. “Two years ago, less than 2% of jobs mentioned working remotely. Now, more than 10% of jobs mention remote work. Companies that offer remote opportunities are the most successful at recruiting.
Siegel expects the market to normalize in about 12 months. People who choose not to work live on savings that will eventually run out. (The personal savings rate in the United States has fallen to a post-pandemic low of 7.5% in September, the most recent month for which data were available).
And not all jobs can be done remotely. In fact, Siegel said, about 60% of jobs nationwide require employees to work in person.
This momentum has been good for workers and good for ZipRecruiter, which recently reported that its third quarter sales more than doubled.
“It really is a golden age to be a job seeker,” Siegel said. “You have never seen employers fight so hard for your attention. “
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