Job Vacancies Report Suggests 30-Day Tipping Point for US Job Postings
Author: Marta Moakley, XpertHR Legal Editor
January 28, 2015
Over half of all US job vacancies that are not filled within 30 days will remain open for three months or more, according to a new report released by job search website Indeed. The report suggests a "30-day tipping point" and finds that for businesses that fail to fill a job within the first month, there is a 57% chance that the position will remain open for three months or more. In addition, most positions are taking slightly longer to fill when compared to one year ago.
The report uses a combination of official statistics and Indeed's job openings data. It was produced by the Centre for Economics and Business Research Ltd (CEBR).
In the report, Paul D'Arcy, SVP Indeed, notes the research "demonstrates that employers must keep a close eye on the time that it's taking to fill positions." If a position is not filled within 30 days, D'Arcy cautions that "it is highly likely that the employer will struggle to fill this role within three months - meaning a significant knock-on effect to the productivity of their business."
Business productivity may suffer because delays in recruiting may result in staff shortages. Staff shortages in turn may result in increased working hours for current employees, a drop in business output and possible morale issues. If the lower employee morale results in increased turnover, business output will continue to decrease.
According to the report, employers in the following industries face the greatest challenge in filling open positions:
- Hospitality;
- Manufacturing;
- Information technology; and
- Healthcare.
In addition, retail sales managers, software engineers, registered nurses and physician assistants are among the most difficult jobs to fill.
In a statement provided to XpertHR, D'Arcy mentioned that "when labor is in short supply, organizations create more flexible arrangements to draw more skilled labor into the field and to fill as many shifts as possible with the existing labor pool." Specifically, D'Arcy describes how the healthcare industry "has created a unique set of working arrangements," such as contract staffing, travel nursing or per diem nurses, in order to access a broader labor pool.
According to the report, an employer's geographic location may also help or hinder its recruiting efforts. In some states, the skills sets of the population may not match those required by employers. Higher-growth states may experience longer recruiting timelines as a result of stiffer competition in attracting the best candidates. Another factor contributing to longer timelines may be the number of industries that are facing recruiting challenges present in a particular state. According to the report, Eastern and Midwestern states generally display longer recruiting timelines, with Indiana (a state strong in manufacturing) showing the longest timeline.
According to D'Arcy, the national tightening labor market "has led to more hiring challenges" for particular municipalities over the past year, with Seattle, the District of Columbia and Chicago having the "most difficulty year-over-year."