Economic Growth, Yet Job Shortage? The Paradox Explored

If you’re keeping up with the news, then you know government reports say lots of jobs are being added, and unemployment staying low. This made it sound like the job market is doing great, but people looking for jobs tell a different story. 

What the Numbers Say

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According to a new report from the Bureau of Labor Statistics, 2.7 million people found new jobs in 2023, and January had a 54-year low unemployment rate of 3.4%.

For the rest of 2023, unemployment did not improve but only increased slightly to 3.7% by December.

Real Job Hunting Experiences

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For the people searching for work in the job market, they’re applying to all the jobs they can but are not getting many calls back.

This makes it seem like there’s a big difference between what the reports say and what people are actually going through.

Job Searching is Getting Tougher

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When you talk to friends and family, it seems like most people agree it’s become harder to find a job.

People are sending out lots of applications but not hearing back from many places. This can make job hunting feel very discouraging.

More Hoops to Jump Through

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At the same time, companies are making job seekers go through more interviews and tests, which takes a lot of time for a job you most likely won’t get.

At this point, it’s hard to imagine anyone looking for a job and not getting frustrated.

Why Companies are Slow to Hire

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Though there are many different reasons businesses are increasing the difficulty of getting a job, a few common reasons come up.

To start, businesses are worried about the economy. As prices continue to rise with (inflation) and concern over increasing interest rates, businesses are trying to be more cautious.

Increasing the Process

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Businesses feel there is a lot more to lose with a bad hire when they are expecting economic difficulties, so the process of hiring someone is taking longer now than it used to.

Companies are being very careful about who they hire, and as a result, job seekers aren’t getting the kind of response time they used to.

Ghosting Employees

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“Ghosting” by employers, where job seekers receive no response after applications or interviews, has become increasingly common, adding to the frustration and disillusionment of job seekers.

Jobs in Certain Areas

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Despite these difficulties, some fields still need more workers and are looking to make quick hires, like in healthcare and retail stores (retail).

If you’re looking for a job in these areas, you might have better luck than the rest of us.

Saving Money

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For the most part, however, companies are trying to spend less money, so they’re not hiring as much, and this is making it even harder to find a job.

What It’s Like for People Looking for Jobs

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Many people are applying for many jobs but not getting the chance to do interviews, which has led to some unprecedented stories.

Some people have even shared stories online about applying to hundreds of jobs without getting any responses

Keeping Hope Alive

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Even though it’s tough, some experts think the job market might improve soon. They hope that prices will stop going up so much that interest rates might go down, which could make companies more likely to hire, but there is no guarantee.

The post Economic Growth, Yet Job Shortage? The Paradox Explored first appeared on Swift Feed.

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The content of this article is for informational purposes only and does not constitute or replace professional financial advice.

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