Only 10% of job seekers are rushing back to the workforce, hiring giant Indeed says

Job fair coronavirus florida
  • Just 10% of job seekers are urgently looking for work as firms rush to rehire, according to Indeed.
  • Virus fears and employed spouses were the most common reasons cited for non-urgent job searches.
  • More Americans should return to work as schools reopen and COVID fears fade, economist Nick Bunker said.
  • See more stories on Insider’s business page.

Businesses are jostling to rehire faster than their competitors as demand booms. The vast majority of jobless Americans can’t be bothered.

For several months now, an extraordinary labor shortage has held back the economic recovery, as job openings rocketed to record highs, but hiring has fallen below economist forecasts. More than 9 million Americans remain out of work, but for reasons ranging from enhanced unemployment insurance to childcare costs, they’re in no rush to find jobs.

New data from hiring website Indeed adds to this picture. Just 10% of job seekers were “urgently” looking for work in late May and early June, according to a survey of 5,000 Americans. About 30% said they’re not open to searching for work at all, and over 40% said they’re only “passively” looking for jobs.

INDEED
Source: Indeed Hiring Lab

Some of the disparity comes from many job seekers already working, Nick Bunker, economic research director at the Indeed Hiring Lab, wrote in a blog post. The share of Americans urgently seeking work was twice as large for jobless Americans as it was for employed people. And many more employed Americans were passively looking for work.

The survey also debunked some theories as to what’s keeping Americans from rushing back to work. Among those not urgently seeking jobs, more than 20% cited virus fears as a reason for the holdup. Employed spouses and financial cushions were the second- and third-most cited reasons, respectively.

Less than 10% of respondents said enhanced jobless benefits were a reason for their lax job hunts, according to the survey. That stands in contrast with a top Republican talking point through the spring. GOP lawmakers frequently blamed UI payments for weak job take-up, and Republican governors in 25 states have moved to end the supplement before its September expiration.

To be sure, Indeed’s survey was conducted just before some states began rolling back the federal UI boost. But the data signals other factors played a much larger role in keeping Americans from joining the workforce.

Others are simply waiting for circumstances to improve. Nearly 30% of unemployed workers not searching urgently said they’re waiting for vaccinations to increase before seeking jobs. Another 30% said they’re waiting for more job opportunities, and 13% said they’re waiting for schools to reopen.

Indeed isn’t the only firm finding a wide range of factors keeping Americans from taking jobs. The pandemic fueled disruption throughout the labor market, making rehiring much more difficult than just placing Americans where they previously worked, Julia Pollak, a labor economist at ZipRecruiter, told Insider’s Juliana Kaplan.

“Some workers think their industry will never recover, and retire early. Others take a layoff personally, and opt not to return if they’re recalled,” she said. “That means returning to work requires a lot of new hiring – which is time-consuming.”

The combination of factors suggests job seeking will grow more urgent in the fall, Bunker said. After a months-long gap between business demand and worker interest, the labor market should balance out as the economy heals further.

“Many employers want to ramp up hiring quickly, but a large portion of job seekers are hesitant to start jobs now,” he said. “The further decline of COVID-19, the end of enhanced UI, and the return of school in the fall are factors that could increase the intensity of job searches by the unemployed.”

Read the original article on Business Insider