While a recent decrease in job postings has had some fearful of a setback on our path to a brighter employment outlook, additional statistics reporting an increase in overall hiring have suggested the opposite reaction. Although modest, the nation’s employment rates have seen an improvement over this past summer. So how did this happen amidst what seemed like a decrease in available jobs? We think we’ve got the answer.
This summer, the Labor Department reported that job openings fell 180,000 in July from 3.9 million in June and 4.17 million a year ago. Although this drop in job postings is a seemingly dismal sign on its own, its accompaniment by the more uplifting fact that employers actually hired more workers during this time period creates an interesting twist on speculation. Up from 4.17 million a year ago and 4.3 million in June, overall hiring in the U.S. increased to 4.4 million this past July. Our explanation? Employers are more frequently utilizing alternative methods of hiring such as word-of-mouth, networking and (our favorite) recruiting. The more employers find qualified candidates through these means, the less they publicly advertise openings. As a search and recruitment firm, we’d say this is some pretty good news as it indicates a growing awareness of the value in professional recruitment services.