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4 Reasons Employment Levels May Still be Low

The United States is still recovering from the recession and economic crisis that occurred between 2007 and 2009. While the job market is slowly improving and unemployment rates are decreasing, it is still a slow and gradual process. There are a variety of reasons employment levels are still low, including the following:

1. Hiring Freezes

Many companies were placed on a hiring freeze after the economic crisis so even though they may be doing better financially, the freezes still exist in many cases. A hiring freeze is usually placed by the corporation heads so that their various business offices are unable to hire anyone. This means for any company with a hiring freeze, they might still be unable to hire new employees even if they are in need of workers as their business gets back to normal.

2. Higher Employee Standards

After the recession, companies became stricter with who they hire and what they require in their employees. Higher employee standards might include requiring more work experience, a college degree, or being local so they don’t have employees missing work due to traffic issues from a long commute. This has caused the employment levels to remain low in many cases because companies aren’t so quick to hire new employees. They are spending more time looking for the perfect candidate rather than hiring from the stack of applicants they currently have.

3. Fewer Companies

Another reason the employment levels are still low in the US, even though business seems to be improving, is that there is still fewer companies looking for employees. Thousands or more companies, large and small, went out of business between 2007 and 2011, and a good majority of them have not opened their doors again. This severely decreases the amount of jobs in the country. Some companies are opening again but hiring on a very limited basis with less employees than they once have for fear of having to lay off employees once again.

4. More Competition

Job applicants are also having a harder time getting a job because of the employer’s higher standards and because they now have more competition. Individuals who thought to spend the economic crisis in college working on a degree are going to be given priority, as are employees who worked in the industry before. Anyone without experience looking for an entry level position is going to be facing some stiff competition. Overall, this is going to lower the employment rates as companies take longer hiring new employees. The best thing you can do to find a job is get any experience you can and work on your skills.


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