The job market is in an odd predicament right now. Over 15.7 million jobs are open, and the unemployment rate is dropping quickly. Meanwhile, prospective applicants are getting pickier about which jobs they take up.
With 161 million people in the workforce, according to the United States Labor Bureau, every one in ten seats in offices is now empty. Last month, over 530,000 new jobs hit the market.
According to a recent report, 2024 will see over 20 million new job opening in the states. There is also research showing that average wages are on the rise. Despite all that, people are getting pickier than ever about what jobs they take up. More and more Americans are voluntarily switching jobs, with the quit rate hitting 3.4% in September.
But what is the reason behind the job market getting pickier? What is stopping prospective applicants from applying to different jobs despite there being numerous open positions in the market?
Why Workers Are Reluctant to Fill Open Job Positions
Currently, most workers in the US want flexible, hybrid, or remote jobs with higher pay. The problem is that companies still have a preference for employees who can work on-site. They also look for people with several years of experience and those who can work weekends and overtime.
This has created a stalemate situation, with neither party willing to sacrifice their preferences for the other.
The Rise of Remote Work
The pandemic brought about a massive shift in how people work. As workplaces moved to people’s living rooms, many developed a preference for it. Remote and hybrid work not only allowed employees to do their work but do it on their own time and terms. While research claims that employee productivity increases significantly when they work from home office, employers still seem to prefer employees who can work in person. Many companies also offer reduced pay for those choosing to work remotely instead of coming into the office, much to the chagrin of employees. So, despite there being several open positions in the market, prospective applicants are increasingly holding out for jobs that will offer them the chance to work remotely while also earning decent money.
Artificial Intelligence-Related Fears
The rise of Artificial intelligence has many pronged implications. One of them is, of course, several tasks and projects getting automated. This has created a fear of being replaced in employees across industries. As companies continue to invest in AI, prospective applicants and those already in the labor force are making the choice to opt for jobs where they are not likely to be replaced.
Labor Shortage Creating a Cycle
The growing number of open job positions has caused a labor shortage, and not because people don’t want to work. More open job positions in the market means prospective employees can take their pick of the litter. So, applicants are holding out for positions that will offer them more benefits and more pay. This leaves companies competing with each other to hire suitable talent, creating a cycle.
Side Gigs Growing in Popularity
44% of Americans have a side hustle, as a study conducted by Lending Tree late last year found. As the cost of living surges, many Americans resort to hustling on the side to feed their lifestyles.
According to a study conducted by the Lending Tree, over 44% of people in the US prefer to have side gigs. The study also showed a 13% rise in people pursuing side hustles since 2020. 62% of Gen Zs claim they have a side hustle.
But while employees want jobs where they can pursue side gigs, whether to battle the rising costs of living or to pursue their dreams, companies are often reluctant to hire applicants who want to run side businesses. Even though studies show that employees are happier and more productive when they have side gigs, many bosses are not convinced and believe that working on the side will make employees less productive at their primary jobs. This leads companies to not want to hire people who wish to continue working on the side. More and more prospective applicants are, thus, skipping over such companies and looking out for ones that will offer them the flexibility to work freelance or run a side business.
Hello, friend!
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