Four things to know about the current labor market and the impact on your job search

As the world faces uncertainty with the pandemic, there are certain things to keep in mind if you are considering looking for a new job. Hopefully these tips will help you if you are questioning your current employment situation and wondering if you’d like to consider making a change.

The labor market highly favors employees

 In July 943,000 jobs were created which is a very high number. There is definitely a shortage of workers and employers are competing at a desperate level to hire and retain talented employees. This trend favoring employees has not been seen in a very long time. This is the opposite of the past great recession in 2008 and the massive job cuts when things shut down in early 2020. If you are looking for a job now, this is great news! You have many options available to you and employers can not be very picky as to who they hire because they need employees immediately and do not have a lot of options. I encourage prospective employees to take advantage of this by going on multiple interviews and then carefully selecting a job that best fits them after receiving multiple job offers.

COVID-19 still looms large over everything

 Part of the reason for this labor shortage are the effects of the pandemic. Several factors have caused less people to be in the labor market. First, with generous unemployment benefits people have felt safer staying home than going to work. The supplemental federal benefits end in September which may lead to more people entering the workforce. Second, with childcare and schools closed many people have left the workforce to take care of their children. Depending on the delta variant in the next month, schools may or may not continue some level of remote learning which may impact workers returning to work. Third, people are still worried about getting sick or are taking care of a loved one who is sick. It is helpful if anyone is working outside the home to take their own health and risk factors into account before working outside the home. Factors to consider include how widespread the delta variant is in your area, safety precautions at the workplace, vaccination status of yourself and others, and company culture around the virus.

 Pay is negotiable

 In a labor market such as this, negotiating pay is likely possible. Remember, employers really want you to work for them so asking for more money and being able to receive an increase in a starting salary remains likely. It is helpful to do your homework as to what the market rate is for your profession and then to come up with a valid reason to ask for more which could include years of experience or other factors. Aside from negotiating pay, keep in mind many employers such as retailers have raised their starting wages already. The worst the employer can say is no. It is best to negotiate after making a job offer and not during the initial interview 

Generous benefits may be available

A common way for employers to attract employees is to provide them with valuable benefits. Traditional benefits include paid time off and health insurance, but now with a war for talent companies are getting creative with offering benefits that will entice workers and encourage them to choose one employer over another. For example, retail companies are offering to pay for college tuition for their part time and full- time employees. Some of these benefits have been added since the start of the pandemic due to a shortage of workers. Another benefit that has been added due to necessity because of the pandemic has been the ability to work from home. Many employees have enjoyed working from home and some companies will continue to offer this benefit after the pandemic since employees have indicated they will look for other jobs if they can no longer continue to work from home at least on a part time basis.

 The labor market strongly favors employees at this moment. Employees can negotiate higher pay and enjoy good benefits as a result of this. Keep in mind that COVID-19 and the delta variant continue to have a big impact on the labor market and working conditions. If you are looking for help in your job search or for clarity regarding your career decisions, career counseling can help. Contact me today for a free consultation.