Job hunting in a cooling job market

This year’s slowed job market presents numerous challenges for job seekers. With evolving industry demands, technological advancements and economic shifts, finding the perfect job has become increasingly difficult.

Why it matters: For those on the hunt for a new job, it’s important to consider various factors that may hinder the job search and identify strategies to improve their marketability in the job market.

Last year, the labor market tightened after a period known as the “Great Resignation.” The trend was sparked by many factors including pandemic burnout, interest rate hikes leading to a higher cost of living, high inflation and the door opened to more remote work arrangements. Companies struggled to reduce turnover and retain their most talented staff while facing intense competition for staff. This year, while the unemployment rate remains historically low, overall job growth has cooled.

By the numbers: According to the Bureau of Labor Statistics (BLS), the unemployment rate changed little at 4.1% in September, and employers added 254,000 jobs. 

Challenges of job hunting

Regardless of the generation, the biggest challenge in today’s job market is the declining demand. “As the demand drops, there are more candidates competing for fewer jobs,” said Chris Myers, president/CEO at Professional Alternatives (Houston, TX). “In some cases, technology will replace workers with certain skill sets or create demand for workers with certain skill sets that can embrace and leverage technology. It’s certainly a challenge because the technology landscape moves so quickly.”

Tips for job seekers

Embrace technology tools

AI-related jobs are rising across the board, resulting in labor productivity growth among various sectors. In fact, AI-related jobs hit 2% of all jobs at the end of February 2024, according to a Hiring Lab report. To remain competitive in the AI-driven market, job hunters must adapt to the latest AI tools and software. 

Generative AI skills, or the ability to build algorithms that produce text, images or other data when prompted, are sought after most, with nearly 60% of AI-related jobs requiring those skills, according to a Stanford University report. Large language modeling—technology that generates and translates text—ranked second, with 18% of AI jobs requiring those skills.

With advanced credit management software, credit professionals can mitigate risks through real-time credit visibility and manage global portfolios with streamlined workflows. AI-powered decision-making enhances processes in advanced analytics, including customer acquisition, credit decisions, monitoring, collections, retention and engagement.

Be flexible with expectations

Since the job market has softened, candidates who previously had high expectations during periods of extremely low unemployment must now readjust. “When demand was high, candidates sought better working conditions, higher compensation and more prestigious titles,” Myers said. “However, those advantages may no longer hold the same weight in the current environment.”

Many job seekers still want remote or hybrid options, but finding one will be difficult. “Those positions are either filled or lost, thus bringing employees back to the office full time, reducing remote or hybrid options,” said Heidi Lindgren-Boyce, CCE, senior credit manager at Star Rentals, Inc. (Kent, WA).

Invest in education

To enhance your competitiveness in the job market, you must be willing to learn, acquiring the knowledge and skills necessary for your role. “Not only should candidates be able to work with technology and learn on the job, they should be able to work well with people, even if it’s only via email, text or calls,” Lindgren-Boyce said.

By obtaining designations through NACM’s six-level Professional Certification Program, credit professionals can increase their credit knowledge, refine their skillset and enhance their credibility in the profession. Additional knowledge can be obtained through NACM’s Unlimited Webinar Program, which covers a multitude of subjects, from the latest tech trends to invaluable career development strategies.

Quality over quantity

An unfocused strategy, like applying to hundreds of jobs, may be prolonging your job hunt. Instead, adopt a targeted approach by creating a list of potential employers and setting specific goals for yourself. “Rather than applying for every position you’re qualified for, set clear objectives,” reads a Forbes article. “That way, it will be easier to concentrate your efforts and remain energized.”

The bottom line: In the face of a slowed job market and evolving industry demands, job seekers must change their approach to job hunting in order to be successful.