10 million job openings. 8.4 million people without jobs. Let’s explore the complexities of this economic landscape.

This Week In Your Wallet: Navigating Job Mismatches

Labor Day was more impactful this year for many. Whether you enjoyed a long weekend, faced recovery from Ida, or reflected on the Jewish New Year, it marked a moment of change.

This holiday weekend saw millions, including freelancers, lose federal unemployment benefits that provided crucial support during the pandemic. If you're unsure what assistance you might receive, check out this detailed guide.

While expanded benefits were often blamed for hindering job searches, a Wall Street Journal analysis disagrees. Many, especially women and women of color, face caregiving duties that prevent them from returning to work. Those who have managed to rejoin the workforce share that “balance is an illusion.”

Is There a Fit?

Another challenge is the disconnect between available jobs and the skills of job seekers. “A mystery lies at the core of the economic recovery: 10 million job openings exist while over 8.4 million actively seek employment,” reported The Washington Post, noting just 235,000 jobs were added in August.

What’s happening? It appears to be a blend of several factors. There’s The Great Reassessment, where many are reconsidering their work lives and opting for better conditions, such as safer environments, improved hours, and higher wages. Some are shifting from restaurant roles to warehouses for better pay, evident in the “Now Hiring” signs at many eateries.

Adding to this is The Great Resignation, with 13% more individuals quitting their jobs compared to pre-pandemic levels, often due to home responsibilities. Lastly, The Great Retirement saw 2 million more retirements than expected, with factors including rising 401(k) balances and businesses downsizing. It’s a complicated picture.

Finding the Right Opportunity

If you’re job hunting, whether it’s your first role or a career switch, understanding where the jobs are is vital. This can help align your skills with industries actively hiring. Despite personal observations, CNBC revealed that the hospitality sector saw no net hiring last month, while professional services, warehousing, manufacturing, information services, and finance added many positions. CNBC’s Thomas Franck reported that automotive factories also increased hiring.

Next, refine your job search approach to avoid automated systems that often overlook qualified candidates. A recent report from Harvard Business School uncovered the issue of “hidden workers,” a term for those missed by hiring algorithms. These individuals typically fit into three categories: part-time workers who can work full-time, applicants with gaps in their resumes, and those not actively seeking work but willing if the right opportunity arises.

The report offers tips for companies to improve their hiring practices. As a job seeker, consider going back to traditional methods to ensure your resume gets noticed, advised The Wall Street Journal’s Kathryn Dill. Network with friends and acquaintances who may know of job openings. Keep an eye on local news for hiring companies and leverage your connections to find opportunities. Engage with organizations dedicated to helping individuals return to the workforce. (Here’s a past discussion with ReacHIRE, an organization focused on this.)

Securing That Offer

Ensure the benefits package meets your needs.

Final Thoughts

We’re launching another session of our coaching program FinanceFixx next Monday. If you’re uncertain about the value of financial coaching, here’s a breakdown of how coaching differs from advising.