Recruitment may increase in the fall, but the job market is tough this year

“A lot of those industries were forecasting profits. They appear to be slowing, and that creates fewer job openings,” he said.

The number of job openings in the U.S. is already hovering near its lowest level since early 2021, and many employers are taking their time hiring. While the slow pace of hiring makes the decline less robust than in some years, Mullinix said there are steps job seekers can take to stand out.

That’s good news, because a job search can take months. In fact, the number of job seekers who find a new job within three months is down 14% in 2024 compared to 2022, according to Live Data Technologies, which provides real-time employment data.

Mullinix noted that some employers are turning to contract and freelance work to avoid paying the costs of a full-time employee with benefits.

Of course, the overall unemployment rate remains low, and there are still areas where employers can’t find the talent they need. And parts of the economy could continue to heat up, especially after the Federal Reserve cut interest rates for the first time in four years in an effort to stem high inflation.

Startups can provide a boost

Atli Thorkelsson, who helps startups recruit staff at venture capital firm Redpoint Ventures, told BI he expects startups to be “quite active” in recruiting in the second half of 2024.

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“I often hear from recruitment agencies that they are super busy,” he says. “I also see an increase in the number of searches from our founders.”

Thorkelsson said that recruitment at startups has been increasing since September last year and that growth at many small companies, while cautious, is noticeable in the demand for staff.

But in other corners of the economy, employers’ caution is winning — for now. That’s causing some to list fewer vacancies.

“Companies are becoming more cautious,” Mullinix said.

One challenge is that with fewer openings, the number of applicants per position can increase, he said. That can obviously make it harder for job seekers and for recruiters who have to sift through a stack of applications. Large companies in particular often use software to sort through resumes. A large number of applicants can lead to tough decisions, Mullinix said.

Recruiters are “screening candidates a little bit more rigorously so they don’t have to go through a thousand applications,” he said. “Realistically, they can’t do that in one day.”

And while the unemployment rate is low, that doesn’t mean only the unemployed are browsing the job vacancies.

“Even the people who have jobs now are not happy with the jobs they have,” Mullinix said. He said inflation has made some workers angry because their wages don’t always keep up with spending.

Now that people are staying in their jobs longer than a few years ago, during the so-called Great Resignation, some are getting restless, he said.

“The problem is that you have job seekers who are simultaneously employed and unemployed, and who are simultaneously looking in a market where supply is falling and demand is rising,” Mullinix said.

That’s especially true for high-paying jobs, he said.

Don’t go too far with it, but don’t hold back too much either

Mullinix said it’s possible to apply for too many jobs — and too few. He said the bulk approach of going for every job where applying is a single click often isn’t as effective because so many people end up competing for the same role.

Instead, he said, it’s wise to be more deliberate and go for the things you’re most qualified to do. Also, Mullinix said, do the tedious work of filling out applications that aren’t one-click. That often means wading through clunky software interfaces.

“That’s the same process that everyone has to go through,” he said. “That’s going to eliminate some candidates right away, and that’s going to be a less competitive job.”

And even if the job title in a job ad is different from a position you’ve held before, it’s often a good idea to apply if you have the right skills and qualifications, Mullinix says.

“Companies give things a hundred different names,” he said.

Mullinix said it’s understandable that job seekers would choose the easiest way to apply because the application process can be so unpleasant.

“Applying for jobs online is just not the most fun thing to do,” he said, noting that it often scores poorly in surveys. “It’s about as much fun as being divorced.”