A Sign That The Frozen Job Market Is Thawing

job market improving

By Chris Taylor


NEW YORK -- If there are no jobs out there, someone forgot to tell Andrew Gordon.

In late August, the 25-year-old started a new gig as a web specialist in the communications and marketing department of the American Health Assistance Foundation, a nonprofit in Clarksburg, Md. The job is a big move up from his last position as a customer service representative of a moving company. And it came with a 15 percent higher salary. Most significantly, he landed the job at a time when many job seekers simply assume there's not much out there.

"The job supply was greater than I would have thought," says Gordon, who started his search earlier in the summer. "There were actually plenty of things to apply for."

Gordon's experience could bode well for the rest of us.

A mix of strengthening salary numbers, growing private-sector employment, and robust corporate profits indicate that the frozen job market of the last few years could be thawing.

That could make this a good time to trade up to a better job or to ask for a long-deferred pay rise.

"There's never been a better time in recent memory to look for a job than right now," says David Perry, managing partner of executive search firm Perry-Martel International and author of "Guerrilla Marketing for Job Hunters 3.0," who has recently had prospects turn down $400,000-a-year jobs because top-flight talent is in such demand.

"Everybody believes that it's a bad time to ask for a raise -- but that's because everybody is wrong."

More: GM Vows To 'Insource' Most Of Its Jobs: A New Trend?


Rosier Outlook

A few factors are feeding this brighter outlook.

Two-thirds of human resource professionals are planning to hire more staff this year, according to the Allied Workforce Mobility Survey, which was conducted in March.

At big companies of more than 10,000 employees, human resources managers are even more bullish, with more than 4 out of 5 planning to boost their ranks, according to the report.

That's been translating into slow-but-steady employment gains, like the 163,000 jobs added to the economy in July, according to the Bureau of Labor Statistics. (August data is scheduled to be released on Friday, Sept. 7.)

"Jobless claims have stayed below 400,000 for some time, which suggests that there's room for net hiring growth," says John Challenger, chief executive of Chicago-based placement firm Challenger, Gray & Christmas. "Some companies are even suggesting that they have jobs to fill but can't find people for them."

The loosened purse strings may be due to healthy corporate profits. Earnings-per-share for the S&P 500 stand at record highs, according to S&P Capital IQ.

And a newly released compensation study from consulting firm Mercer forecasts 2.9 percent average salary growth for 2013. That's up from 2.7 percent in 2012 and 2011, and 2.3 percent in 2010.

"Companies have gone as far as they can with a skeleton crew," says Cynthia Shapiro, a Los Angeles career strategist and author of "Corporate Confidential." "For years, they've been holding their breath to see what would happen, hoarding their cash. But you can only do that for so long."

Over the past month, Shapiro has seen a change. Some of her clients are weighing multiple job offers, a rare phenomenon in 2008 or 2009. "It seems to all be happening at once."

More: New Sites Promise More 'Scientific' Method To Job Hunting


Recruitment By Stealth

Beware, though. If you're looking to trade up, whether at your own company or somewhere new, it would be wise to consider how the job market has changed. For example, the traditional method of scanning available job listings doesn't bear much fruit anymore.

"Recruiting has gone underground since 2008," says Perry. "Whenever anybody advertised, they were deluged with 5,000 responses, and they had to get back to everyone and keep all those resumes on file. It was a mess. So hiring has gone into stealth mode, and executive-search firms have never been busier," says Perry, himself an executive recruiter.

In other words, even if you're not actively searching for a better gig, you still want to be found. That means leveraging sites like LinkedIn or ZoomInfo, and seeding your online resume
with the keywords that match the job you want.


Trading Up Without Moving On

Of course, you don't have to leave your company in order to secure a better position. You may be able to snag a pay raise or a more senior title at the same company.

Your manager may be more amenable to the idea than you realize. Perhaps you have taken on more responsibilities after the departure of other staffers without getting a commensurate
raise.

And it's not just you. One 2011 MetLife employee benefits study found that 34 percent of employees said their workload had spiked over the previous 12 months, and that employers admitted as much.

Many hiring managers know intuitively what Matthew Bidwell, assistant professor of the Wharton School, outlined in his paper "Paying More To Get Less": That outside hires can be more pricey while failing to meet performance expectations.

"It's a heck of a lot easier to give you a 5 or 10 percent pay bump, than to go through the whole rigamarole of finding someone better than you," says Perry. "If you've got talent, you're in the driver's seat."



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34 Comments

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Fran

Maybe things are looking up for twenty-somethings who have jobs and are looking to "trade up." I don't see any mention in this article of things looking up for fifty-somethings who've been jobhunting for two-plus years. I think we may be talking apples and oranges here.

September 06 2012 at 11:50 AM Report abuse rate up rate down Reply
rebecca jean

thawing......................get freaking real........

September 05 2012 at 5:52 AM Report abuse rate up rate down Reply
I hate KK

Where are they thawing? Liars!!!!!

September 05 2012 at 12:56 AM Report abuse rate up rate down Reply
Terri

I dont know about the rest of the country, but the job market in GA is in the toilet...and isn't looking up. I got laid off over two years ago. I have applied for over 1000 different jobs that I was more than qualified for and never got as much as a call. My husband, who has been in his Local for over 25 yrs has had to go out of state to work, along with about 200 of his Union brothers. Its AWEFUL here....and I just dont see it getting any better any time soon. www.giveforward.com/haleyssurger

September 05 2012 at 12:17 AM Report abuse rate up rate down Reply
yourff

There never was a problem for technically trained workers. Their rate of unemplyment was 3%. The headline is another example of how AOL and HuffPo shill for the DNC

September 04 2012 at 11:53 PM Report abuse rate up rate down Reply
pj512

I have been unemployed for nearly three years. I have my first interview tomorrow. It is for a part-time, $8 an hour position, but it's an interview. So while it may not be what I want to do, at least it's an interview.

September 04 2012 at 10:49 PM Report abuse rate up rate down Reply
willlon928

What They really mean is the're hiring more of the 1.8 million illegal aliens that husseinoba just made legal !

September 04 2012 at 10:35 PM Report abuse rate up rate down Reply
betsy

My UE ran out in May, I'm 63. It's not thawing. We've stopped looking. Nothing there for regular office workers. If it wasn't for my son I'd be homeless after spending my life working a regular job.

September 04 2012 at 9:57 PM Report abuse +1 rate up rate down Reply
DT

"Frozen"? jobs aren't something you put in a freezer...you either have them or you don't..I guess all the jobs are "on ice" over in china.waiting to be thawed out.....or maybe global warming will bring them back.

September 04 2012 at 9:56 PM Report abuse +1 rate up rate down Reply
parthenon1

Want to see the job market really shape up quick change the occupants of the white house. Oil field and other energy related jobs will pick up within a few weeks. As soon as Obama care is eliminated all small business will really be hiring, all they need is some favorable direction on taxes etc. When people go back to work in the private sector they will be paying income taxes not taking govt. handouts. We must remove as many of the party of deviates (D) as possible.

September 04 2012 at 9:40 PM Report abuse +1 rate up rate down Reply

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