5 Reasons The Job Market Is In Shambles Right Now

1. Companies are taking longer to follow up after job interviews.

And when you do get a call or follow up for an interview, it might take longer to even know whether you got the job or not. Research by human capital advisory firm Josh Bersin Co. and workforce solutions firm AMS found that the “duration for global hiring” is at an “all-time high,” and that the recruitment process now averages about 43 days.

When you have to wait more than a month for confirmation after a job interview, that can put a dent in the proactivity of applying for other jobs, as well as a major dent in your pocket. Unemployment insurance only lasts but so long and sometimes barely covers the full basic expenses of living. It's definitely annoying and nerve-wracking to wait so long for a follow-up from a recruiter or hiring manager, and it's even more so when you thought you aced the interview.

Not to mention you could be waiting just to get rejected, having wasted time on multiple rounds of tedious interviews.

2. Job recovery hasn't quite caught up due to the impact of the pandemic.

Experts say job growth is “downshifting” from the aftermath of the pandemic, and the pace has “caught up to where it would have been if the health crisis hadn’t happened.” Companies and professionals alike are still dealing with the fallout of COVID-19, and it's apparently taken more than three years to see substantial movement forward when it comes to job openings and creation.

3. Many of the open positions may not be in your industry.

According to labor statistics, 272,000 jobs were added in May, with the growth driven mainly by three sectors: healthcare (+68,000), government (+43,000), and leisure and hospitality (+42,000). Jobs created in these industries reportedly accounted for more than half of the U.S. employment gains.

This indicates that it might be a bit more challenging for those in other sectors to land interviews and get hired. This certainly doesn't mean changing industries or fretting because what you do doesn't fall into any of the aforementioned. It simply points to something that could contribute to the frustrations of job seekers who aren't getting callbacks for jobs in other industries.

4. If you're a college graduate, the jobs that are available might not align with your educational background.

Demand for jobs that require a college degree is reportedly lower than those that don’t, and recent grads are also “fixated on certain positions with too many applicants rather than high-demand roles," experts say.

However, another report from Harvard Business School and the Burning Glass Institute found that not all employers who indicate support of skills-based hiring and remove degree requirements from job ads are actually hiring candidates without degrees. “[F]or all its fanfare, the increased opportunity promised by skills-based hiring has borne out in not even 1 in 700 hires last year,” the authors wrote.

Either way, there's a clear issue here in terms of some companies making up their minds about whether not having a college degree will block candidates' eligibility for certain jobs, posing a clear challenge for job seekers whether they've pursued higher education or not.

5. Company leaders, constantly fearing a recession, have been cautious about hiring new workers.

Experts say that company leaders are still holding on to fears that a recession is coming, and are going light on hiring because of this. “Business leaders are still concerned that a recession is possible, even if it’s not 100% certain,” Glassdoor lead economist Daniel Zhao told CNBC earlier this year. “They don’t want to overhire into a recession and then have to lay people off.”

Dan Kaplan, a Korn Ferry senior client partner, added, “No one can figure out what’s ahead, which means you have to make more decisions blindly. Normally, economists will predict a tough market for two of three quarters, and there’s a light at the end of the tunnel, but this time it’s been almost 24 months of predictions of doom and gloom.”

There's Still Hope For Job Seekers

While there are major challenges right now for job seekers, it's always a good idea to look at things with a solutions-focused mindset and approach with optimism. (I mean, do we all really have a choice?) If you're hitting walls in your job search, it's time to think of a better strategy, consider other passions you have, start a side hustle, or try these methods for upgrading your job search methods.

The journey might be more difficult for some and if you feel passionate about doing a certain specific job, hold your ground if you're financially and mentally able to. Keep applying to your dream gig, track what you're doing and how you're spending your time, volunteer to serve in some way in order to continue doing something you love while you're looking, prioritize free self-care activities, and hold on to faith. Something will indeed come through.

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