New hiring obstacles have surfaced as we go past the disruptive Covid-19-related limitations. Many firms are having trouble filling positions because there are a record number of opportunities for jobs and a sizable pool of skilled applicants who are ready to accept employment offers, or who should be. Why?

U.S. employment has reached unprecedented levels

The need for workers is at an all-time high. According to the U.S. Bureau of Labor Statistics (BLS), there were 11.3 million job opportunities in the US in January 2022, which is a little decrease from a record 11.5 million in December 2021. Incredibly, 678,000 new employment were added in February.

18.8 million of the 22.4 million jobs that were lost due to temporary closures and stay-at-home orders during the early stages of the epidemic and drove businesses to lay off or furlough millions of workers have so far been regained by the economy. The service sectors that first took the brunt of the pandemic’s effects—including retail, lodging, dining, hospitality, healthcare, and professional services—have seen the greatest improvements.

As a result, there are more available positions than there are job searchers, creating a fiercely competitive employment market. Only 60 jobless individuals were available for every 100 job vacancies in January, a considerable decrease from the 84 unemployed individuals for every 100 job openings in 2019. There were 490 jobless persons for every 100 jobs at the onset of the epidemic, in April 2020.

No sudden influx of people into the job field has occurred despite the fact that increased government unemployment benefits concluded on September 6. Concerns over COVID-19, childcare challenges (even after schools reopened), and larger-than-usual financial reserves have deterred job seekers. Furthermore, while salaries are increasing, the rate is not fast enough to keep pace with the rate of inflation and the number of passive temporary workers.

The 6 toughest hiring challenges in 2022

Employers are seeing some new hiring hurdles as they work to restore the capacity that was lost during the pandemic lockdowns.

The huge no. of resignation

According to BLS data, 4.3 million individuals left their positions in January 2022, indicating that The Great Resignation, a trend that began in 2020 and persisted through 2021, is still going strong. Workers left their employment in historic numbers last year—nearly 48 million, on average. The fact that more people are being hired than leaving the labor sector shows that most workers are changing jobs rather than leaving them altogether.

Growing divisions

Employers continue to favor candidates with many years of experience, those who are available to work irregular hours, and those who are ready to work on-site, despite a record number of job opportunities and a labor shortage.

On the other side, employees look for more pay, more flexibility (such as flexible hours and remote work choices), and secure work environments. According to research, almost 55% of job searchers are looking for positions that enable them to work from home, citing worries about workplace safety and the need to take care of children or other family members.

This disparity in priorities has led to yet another difficulty in hiring following Covid. Both employers struggle to fill their open positions and job seekers struggle to obtain employment while applying to numerous online vacancies.

The number of long-term jobless (without a job for more than six months) persists at roughly 2 million, according to the BLS, even if the unemployment rate has progressively decreased from a 72-year high of 14.8% in April 2020 to 3.8% in February 2022.

Great changes bring great expectations 

Certain professions and sectors have seen a significant change from the pre-pandemic era in terms of job responsibilities and work processes. For instance, several restaurants and nightclubs have turned to pre-mixing drinks in bulk to save time in order to deal with staff shortages. Professional bartenders are harmed by this tendency.

Ironically, despite how frantic companies are to find workers, many are hesitant to change their practices and expectations, refusing to boost pay to levels that are competitive with those of the market, and putting extra demands on workers, such as new on-call schedules.

Nevertheless, the situation has changed. What makes you a good match for our firm is a question that companies used to ask job hopefuls before the labor market changed. Let me explain why our firm is a suitable fit for you now, instead of the other way around.

Candidates snubbed by robots

Despite the fact that the labour market is favorable to job seekers, many applicants are unable to secure employment. Put the robots to blame.

More businesses are employing automated screening tools that eliminate applicants who don’t seem like a close fit “on paper” in an effort to expedite their hiring procedures. According to a Harvard Business School survey, over half of the companies say they immediately reject applicants who have not held a job for more than six months, regardless of the situation.

People who are looking for work submit applications and resumes to job ads with the expectation that a person will review them. Nowadays, this is different. According to a study by Harvard Business School, more than 90% of big companies use automated screening tools to review job applications.

These systems make use of algorithms that can separate qualified applicants from those who are not qualified. A potential candidate might be eliminated even by using incorrect words or not utilizing the precise ones. As a result, a lot of applicants are getting turned down for jobs within hours of submitting their online resumes, despite having college degrees and years of relevant experience.

Maintaining high-performing employees

Employers should put a little more emphasis on keeping their top performers in light of how challenging hiring has been lately. This calls for a closer look at their corporate culture, pay scales, benefits, and business regulations from the standpoint of keeping people rather than just attracting them.

In order to keep their finest personnel from leaving, conducting “stay” interviews is a common retention strategy. Every few months, there are these casual check-in sessions to talk about anything that could be getting in the way of people flourishing at work.

A low wage turns off job seekers

According to a poll of more than 3,000 hourly workers done by employer payment platform Branch, the number one reason why businesses find it difficult to fill available positions is that salaries are too low. Fear of being exposed to Covid-19 at work came in second with 46% of the respondents.

Sixty-eight percent of the workers questioned believed that receiving unemployment benefits and stimulus payments is a better financial option than working for merchants, hotels, and restaurants that are in need of staff.

How much longer can the labor market remain overheated? In 2022, employees are anticipated to continue to have a lot of negotiating power, according to the short-term labor market view. Demand for employees is probably going to continue to surpass supply for the remainder of the year, even if more job hopefuls join the labor force as Covid-19 worries fade and daycare choices rise.

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