How to hire based on the current job market

June 10, 2020

While millions of people are still unemployed, CareerBuilder is seeing industries slowly start to recover from the coronavirus pandemic, plus an increase in job postings.  

Here’s what employers need to know about the latest jobs report. 

Data overview 

  • Unemployment rate declined from 14.7% to 13.3% 
  • Unemployment rates by demographics: whites (12.4%), Asians (15%), Blacks (16.8%), Hispanics/Latinos (17.6%)  
  • Temporary layoff decreased from 18 million to 15.3 million 
  • Permanent job losers increased from 2.05 million to 2.3 million 
  • 70.8% of the total unemployed have been jobless 5 to 14 weeks 

Hiring insights  

Intensify your diversity hiring initiatives 

These 40 million jobs that were lost were not lost equally in the pandemic. The Black and Latino communities were hit the hardest – and the unemployment figures represent that. As white workers are seeing gains in employment, Black workers are seeing an increase in unemployment, as is the Latino population. Partner with community groups, utilize supply and demand data, and research where to find more diverse candidates as you begin to re-hire employees. 

Did you know that Black American households make 61% of white American households? Listen to CareerBuilder CEO Irina Novoselsky discuss the greater need for diversity in hiring on Bloomberg Radio >>>  

Continue looking for skills, not just experiences 

Workers in struggling industries might be looking for new roles, to switch careers or take on temp work for extra cash. Consider how their skills might benefit any open roles you have. Industries that continued to lose jobs in May included the accommodation industry, the airline industry, and in government - specifically local governments impacted by school closures. 

Increase wages and temporary or contract roles 

The number of people jobless for less than 5 weeks dramatically decreased, implying that the swift shift in unemployment has slowed. But - people are remaining unemployed. The number of workers who have been jobless 5 to 14 weeks almost doubled from 7.8 million to 14.8 million in May, and this group comprises 70.8% of the total unemployed. With reports of unemployment paying more than traditional jobs, employers will need to improve compensation and benefits offerings to get workers back.  

Temporary workers are also a good middle solution. If your company is on the upswing, and needs to start ramping up work, but budgets are still tight, bring back workers either at part-time or on a contract-to-permanent basis. You could also rely on temporary workers throughout the recovery process, as permanent job losses rack up and more people stay out of work. 

Job gains for lower-paid workers changed the average hourly earnings 

The slight decrease in the average hourly earnings showed that lower-paid workers are being added back on the payroll. This means that compensation is still vital for long-term retention. Competitive pay is still just as important in recruiting and retaining workers as it was in February, prior to the pandemic during a job seeker’s market. 

 

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A conversation with Bloomberg Radio

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