Jobseekers, employers go through complex process to find each other, study finds

The job market is a constant process of workers searching for jobs and finding employment and employers posting and filling job openings.

“Jobseekers and employers engage in a `search and matching’ process to find one another,” according to a new report from the Urban Institute’s WorkRise initiative. “That process is influenced by many factors — the search behavior of individual jobseekers, systemic and social forces, macroeconomic conditions, employer decisions about recruitment and hiring, and public policies.”

Researchers analyzed more than 100 studies about the search and matching process to learn about how workers and employers come together to create jobs. Among the findings:

• Individual job search. The amount of time that people are willing to spend searching for a job varies considerably. Studies note that employed job seekers spend less time searching and send out fewer job applications than unemployed job seekers. Yet even among people who are unemployed and actively seeking work, many do not job search on a daily basis. Despite spending less time and sending out fewer applications, employed job seekers receive more job offers and offers with higher wages.
• Employer recruitment and hiring practices. Employers spend considerable resources on recruitment/hiring and face major decision points through the process. Employers fill job openings by either reassigning incumbent workers or searching for new workers. More research is needed to understand what recruitment strategies yield the number of hires an employer makes per posted vacancy. There are substantial differences in hiring approaches and intensity among employers.
• Intermediaries. Studies show that referrals from employees who already are working for an employer increase the likelihood a job seeker will be hired and earn higher starting wages. Employee referrals may be particularly beneficial to job seekers with less experience or who are young, relocating or changing industries. Employers also benefit from employee referrals, because they are associated with shorter vacancies and longer-lasting employment relationships.
• Racial and gender disparities. Several studies show that when applicants of different races with similar characteristics apply for jobs, people of color in the sample are less likely to receive job interviews and offers. Women continue to earn far less than men, and this stems in part from differences in how men and women search for and accept jobs.

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The authors of the report identified several areas where additional research would advance knowledge and improve economic mobility for workers.