Although the job market is still strong, applicants are encountering a more competitive scenario!
The job market is gradually cooling, making searches more challenging for applicants. Despite this, the overall conditions of labor market is still favorable. “Things have gotten competitive”, adds Julia Pollak, chief economist at ZipRecruiter.
According to report, released on Tuesday, done by the U.S. Bureau of Labor Statistics, national job openings – an indicator of employer demand – dropped, in April, to their lowest in over three years, indicating a potential weakening in the labor market. New openings fell by 296,000 during the month, hitting 8.1 million, the lowest number since February 2021.
In April, there were about 1.2 job openings per unemployed worker, a decrease from the 2:1 ratio seen about two years ago. This ratio has returned to its pre-pandemic level, noted Jason Furman, a Harvard economics professor and former chair of the White House Council of Economic Advisers, on X.
Both the hiring rate and the quits rate, which reflects workers’ confidence in their job prospects, have declined to below pre-pandemic levels and remained unchanged in April, according to BLS data. “The reduction in quits [and] hires alike likely explains why some feel the job market is sluggish [and] especially tough for new/returning workers”, Daniel Zhao, lead economist on Glassdoor’s economic research team, pointed out on X.
Cooling Off, But Still Strong
Indicators show the U.S. job market remains robust. Job openings still surpass pre-pandemic levels. The layoff rate has been at historical lows for over three years, and the national unemployment rate has stayed below 4% since February 2022. Workers’ pay raises have outpaced inflation, increasing their buying power over the past year. Some sectors, especially those employing lower-wage workers, continue to show hiring strength.
Despite recent job market changes, economists note that the conditions in 2021 were extraordinary and not typical. “2021 may have felt fantastic for jobseekers, but it’s not the way things worked before and it’s not the way things will be forever”, said Pollak. She also added that the current job market, although cooler, is more sustainable and could lead to the Federal Reserve lowering borrowing costs soon.
Competitive Job Market
Job seekers should brace for a more competitive environment, with a potential 10% to 20% increase in applicants for many job listings, Pollak advises. Applicants should frequently apply, make a strong impression, and remember that employers often prioritize resumes received within the first few days to one week.
“You may not be wined and dined [by employers] quite the same way. You may need to search a little harder and longer, but there are good matches being formed in this labor market, and they’re pretty stable”, said Pollak.