---
title: What does a low unemployment rate mean for recruitment?
description: Low unemployment can be a challenge for recruiters. You can succeed during low unemployment but you have to optimize your recruitment strategy.
image: https://blog.skyad.com/hubfs/RT%20Shrinking%20unemployment%20Blog%20post.jpg
---

[![Sky Advertising](https://blog.skyad.com/hs-fs/hubfs/SkyAdvertising%20-Jun2017/Images/skyLogo.png?width=246&height=245&name=skyLogo.png "Sky Advertising")](http://www.skyad.com/)

- [About Us](http://www.skyad.com/#skyway)
- [Strategy](http://www.skyad.com/#meetyourgoals)
- [Solutions](http://www.skyad.com/#solutions)
- [Team](http://www.skyad.com/#ourTeam)
- [Portfolio](http://www.skyad.com/#portfolio)
- [Blog](http://www.skyad.com/#) 
    - [Real Estate](http://www.skyad.com/blog/real-estate/)
    - [Recruitment](http://www.skyad.com/blog/recruitment/)
    - [Marketing](http://www.skyad.com/blog/marketing-2/)
- [Contact Us](http://www.skyad.com/#contactus)

# Sky Recruitment Blog

Learn about the latest in traditional and digital marketing.

- [Digital & Social Media Recruiting](https://blog.skyad.com/recruitment/topic/digital-social-media-recruiting)

- [Employer Branding](https://blog.skyad.com/recruitment/topic/employer-branding)

- [Employee Advocacy](https://blog.skyad.com/recruitment/topic/employee-advocacy)

# What does a low unemployment rate mean for recruitment?

 by [Janine Jones](https://blog.skyad.com/recruitment/author/janine)  |  February 08, 2022  | [recruitment strategy](https://blog.skyad.com/recruitment/topic/recruitment-strategy), [strategy](https://blog.skyad.com/recruitment/topic/strategy), [low unemployment](https://blog.skyad.com/recruitment/topic/low-unemployment)  | [4 Comments](https://blog.skyad.com/recruitment/low-unemployment-recruitment#comments-listing)

[![](https://blog.skyad.com/hubfs/RT%20Shrinking%20unemployment%20Blog%20post.jpg)](https://blog.skyad.com/recruitment/low-unemployment-recruitment)

Updated 2/8/22

It might seem that unemployment at 3.9% as of December 2021 would be a cause for celebration. However, a low unemployment rate also comes with problems. For HR departments, a low unemployment rate means more competition. It’s a buyer’s market and the best candidates often have a wealth of options to choose from. Meanwhile, HR departments are increasingly faced with the challenges of retention issues; positions that might have been stable when jobs were a little more scarce, now face chronic turnover issues. When recruiters are unable to fill positions at all, they can remain open for extended periods of time, producing inefficiencies in the workplace. Needless to say, a low unemployment rate poses a big problem for recruitment. To optimize your recruitment strategy for the shrinking labor market, you’re going to need every edge you can get.

### What can I do to keep recruiting the best people?

In a shrinking labor market, there are no quick fixes. To continue recruiting in the current climate requires holistic solutions. Your HR department must be adaptable, creative, and efficient to set themselves apart from the competition. 

Solve the problem before it starts by working on issues with [retention](https://blog.skyad.com/recruitment/from-the-inside-out-foster-employee-retention-and-productivity). Hiring choice candidates becomes difficult in a shrinking labor market, so if you have a good team, you want to do everything in your power to keep them. That means fostering employee productivity, facilitating engagement, providing meaningful benefits, periodic financial rewards, and fostering a healthy work-life balance. 

Consider non-traditional candidates. Non-traditional candidates include individuals with alternative educational credentials, people who were previously or are currently [incarcerated](https://www.nytimes.com/2018/01/13/business/economy/labor-market-inmates.html), and those who might be transitioning from a radically different field. As the labor force shrinks, savvy HR departments are turning to non-traditional candidates not only because they’re more cost-effective, but they offer [diverse perspectives](https://www.forbes.com/sites/gradsoflife/2017/04/13/employers-are-overlooking-non-traditional-candidates-and-its-costing-them/#74cd30ab67e7) that can help shake-up homogenous teams.

### Optimize your recruiting process

The efficiency of your HR pipeline will determine the quality of candidates available to you. Start by casting a [broad net](https://www.associationcareerhq.org/recruitment-strategies/tips_and_tactics/blog_diverse_candidate_pool) of detailed, engaging job listings. Mainstream jobs boards might not cut it—consider supplementing your postings on LinkedIn and Indeed with more specialized [niche jobs boards](https://blog.skyad.com/recruitment/find-the-perfect-candidate-with-niche-job-sites). Make use of new digital technology that helps move the hiring process faster, like ChatBots and a state-of-the-art ATS. As Larry Myler [writes](https://www.smartrecruiters.com/blog/5-ways-to-hire-fantastic-candidates-in-a-shrinking-applicant-pool/) for SmartRecruiter, it’s essential that you “don’t put candidates into a black hole.” Maintain communication and make yourself available for inquiries throughout the hiring process. If you aren’t yet using social media recruiting, it’s time to implement it into your recruitment strategy. It’s where candidates—especially millennials and Gen Z’ers—are looking for positions. 

When unemployment was around 10%, recruiters had an easier time. The responsibility was mostly on the candidate, while recruiters got to take their time, and got to choose from multiple highly qualified candidates. Today, a shrinking labor force combined with a widening skills gap has shifted the responsibility to recruiters to actively pursue, engage with, and hire their preferred candidates. A lack of applicants does pose a challenge to recruiters. Work to streamline the hiring process, reach out to non-traditional candidates, and address internal issues with productivity and retention. Your HR department will succeed in spite of low unemployment.

Share this:

- [Tweet](https://twitter.com/share)

Search

### Recent Posts

### Archives

- [July 2016 (4)](https://blog.skyad.com/recruitment/archive/2016/07)
- [August 2016 (3)](https://blog.skyad.com/recruitment/archive/2016/08)
- [January 2018 (3)](https://blog.skyad.com/recruitment/archive/2018/01)
- [October 2018 (3)](https://blog.skyad.com/recruitment/archive/2018/10)
- [July 2019 (3)](https://blog.skyad.com/recruitment/archive/2019/07)
- [August 2019 (3)](https://blog.skyad.com/recruitment/archive/2019/08)
- [October 2019 (3)](https://blog.skyad.com/recruitment/archive/2019/10)
- [January 2020 (3)](https://blog.skyad.com/recruitment/archive/2020/01)
- [April 2017 (2)](https://blog.skyad.com/recruitment/archive/2017/04)
- [July 2017 (2)](https://blog.skyad.com/recruitment/archive/2017/07)
- [September 2017 (2)](https://blog.skyad.com/recruitment/archive/2017/09)
- [November 2017 (2)](https://blog.skyad.com/recruitment/archive/2017/11)
- [December 2017 (2)](https://blog.skyad.com/recruitment/archive/2017/12)
- [March 2018 (2)](https://blog.skyad.com/recruitment/archive/2018/03)
- [April 2018 (2)](https://blog.skyad.com/recruitment/archive/2018/04)
- [May 2018 (2)](https://blog.skyad.com/recruitment/archive/2018/05)
- [June 2018 (2)](https://blog.skyad.com/recruitment/archive/2018/06)
- [July 2018 (2)](https://blog.skyad.com/recruitment/archive/2018/07)
- [August 2018 (2)](https://blog.skyad.com/recruitment/archive/2018/08)
- [September 2018 (2)](https://blog.skyad.com/recruitment/archive/2018/09)
- [November 2018 (2)](https://blog.skyad.com/recruitment/archive/2018/11)
- [January 2019 (2)](https://blog.skyad.com/recruitment/archive/2019/01)
- [February 2019 (2)](https://blog.skyad.com/recruitment/archive/2019/02)
- [March 2019 (2)](https://blog.skyad.com/recruitment/archive/2019/03)
- [April 2019 (2)](https://blog.skyad.com/recruitment/archive/2019/04)
- [June 2019 (2)](https://blog.skyad.com/recruitment/archive/2019/06)
- [November 2019 (2)](https://blog.skyad.com/recruitment/archive/2019/11)
- [February 2020 (2)](https://blog.skyad.com/recruitment/archive/2020/02)
- [February 2022 (2)](https://blog.skyad.com/recruitment/archive/2022/02)
- [June 2022 (2)](https://blog.skyad.com/recruitment/archive/2022/06)
- [May 2016 (1)](https://blog.skyad.com/recruitment/archive/2016/05)
- [June 2016 (1)](https://blog.skyad.com/recruitment/archive/2016/06)
- [October 2016 (1)](https://blog.skyad.com/recruitment/archive/2016/10)
- [August 2017 (1)](https://blog.skyad.com/recruitment/archive/2017/08)
- [October 2017 (1)](https://blog.skyad.com/recruitment/archive/2017/10)
- [February 2018 (1)](https://blog.skyad.com/recruitment/archive/2018/02)
- [December 2018 (1)](https://blog.skyad.com/recruitment/archive/2018/12)
- [May 2019 (1)](https://blog.skyad.com/recruitment/archive/2019/05)
- [September 2019 (1)](https://blog.skyad.com/recruitment/archive/2019/09)
- [December 2019 (1)](https://blog.skyad.com/recruitment/archive/2019/12)
- [March 2020 (1)](https://blog.skyad.com/recruitment/archive/2020/03)
- [April 2020 (1)](https://blog.skyad.com/recruitment/archive/2020/04)
- [May 2020 (1)](https://blog.skyad.com/recruitment/archive/2020/05)
- [July 2022 (1)](https://blog.skyad.com/recruitment/archive/2022/07)
- [January 2023 (1)](https://blog.skyad.com/recruitment/archive/2023/01)
- [May 2023 (1)](https://blog.skyad.com/recruitment/archive/2023/05)
- [June 2023 (1)](https://blog.skyad.com/recruitment/archive/2023/06)
- [September 2023 (1)](https://blog.skyad.com/recruitment/archive/2023/09)
- [October 2023 (1)](https://blog.skyad.com/recruitment/archive/2023/10)
- [February 2024 (1)](https://blog.skyad.com/recruitment/archive/2024/02)

see all

### Categories

- [recruitment (52)](https://blog.skyad.com/recruitment/topic/recruitment)
- [recruitment strategy (38)](https://blog.skyad.com/recruitment/topic/recruitment-strategy)
- [Sourcing & Recruiting (23)](https://blog.skyad.com/recruitment/topic/sourcing-recruiting)
- [recruitment marketing strategy (13)](https://blog.skyad.com/recruitment/topic/recruitment-marketing-strategy)
- [Digital & Social Media Recruiting (11)](https://blog.skyad.com/recruitment/topic/digital-social-media-recruiting)
- [employee retention (11)](https://blog.skyad.com/recruitment/topic/employee-retention)
- [Employer Branding (9)](https://blog.skyad.com/recruitment/topic/employer-branding)
- [social recuiting (9)](https://blog.skyad.com/recruitment/topic/social-recuiting)
- [strategy (8)](https://blog.skyad.com/recruitment/topic/strategy)
- [Diversity (7)](https://blog.skyad.com/recruitment/topic/diversity)
- [Social Media (7)](https://blog.skyad.com/recruitment/topic/social-media)
- [Industry Trends (6)](https://blog.skyad.com/recruitment/topic/industry-trends)
- [employee recognition (5)](https://blog.skyad.com/recruitment/topic/employee-recognition)
- [Employee Advocacy (4)](https://blog.skyad.com/recruitment/topic/employee-advocacy)
- [Onboarding & Training (4)](https://blog.skyad.com/recruitment/topic/onboarding-training)
- [candidate experience (4)](https://blog.skyad.com/recruitment/topic/candidate-experience)
- [Advertising (3)](https://blog.skyad.com/recruitment/topic/advertising)
- [Social Media & Digital Marketing (3)](https://blog.skyad.com/recruitment/topic/social-media-digital-marketing)
- [employee referral program (3)](https://blog.skyad.com/recruitment/topic/employee-referral-program)
- [employee support (3)](https://blog.skyad.com/recruitment/topic/employee-support)
- [engagement with potential employees (3)](https://blog.skyad.com/recruitment/topic/engagement-with-potential-employees)
- [generation z (3)](https://blog.skyad.com/recruitment/topic/generation-z)
- [job postings (3)](https://blog.skyad.com/recruitment/topic/job-postings)
- [low unemployment (3)](https://blog.skyad.com/recruitment/topic/low-unemployment)
- [non-traditional candidates (3)](https://blog.skyad.com/recruitment/topic/non-traditional-candidates)
- [remote working (3)](https://blog.skyad.com/recruitment/topic/remote-working)
- [AI (2)](https://blog.skyad.com/recruitment/topic/ai)
- [HR Technology (2)](https://blog.skyad.com/recruitment/topic/hr-technology)
- [Healthcare (2)](https://blog.skyad.com/recruitment/topic/healthcare)
- [facebook advertising (2)](https://blog.skyad.com/recruitment/topic/facebook-advertising)
- [job interviews (2)](https://blog.skyad.com/recruitment/topic/job-interviews)
- [technology (2)](https://blog.skyad.com/recruitment/topic/technology)
- [video calls (2)](https://blog.skyad.com/recruitment/topic/video-calls)
- [work from home (2)](https://blog.skyad.com/recruitment/topic/work-from-home)
- [2018 trends (1)](https://blog.skyad.com/recruitment/topic/2018-trends)
- [Digital Advertising (1)](https://blog.skyad.com/recruitment/topic/digital-advertising)
- [Marketing (1)](https://blog.skyad.com/recruitment/topic/category_marketing)
- [OOH (1)](https://blog.skyad.com/recruitment/topic/ooh)
- [Passive Candidates (1)](https://blog.skyad.com/recruitment/topic/passive-candidates)
- [Pinterest (1)](https://blog.skyad.com/recruitment/topic/pinterest)
- [Sky (1)](https://blog.skyad.com/recruitment/topic/sky)
- [baby boomers (1)](https://blog.skyad.com/recruitment/topic/baby-boomers)
- [banner ads (1)](https://blog.skyad.com/recruitment/topic/banner-ads)
- [bonuses (1)](https://blog.skyad.com/recruitment/topic/bonuses)
- [communication (1)](https://blog.skyad.com/recruitment/topic/communication)
- [employee recruitment videos (1)](https://blog.skyad.com/recruitment/topic/employee-recruitment-videos)
- [epic employee recruitment videos (1)](https://blog.skyad.com/recruitment/topic/epic-employee-recruitment-videos)
- [facebok ads (1)](https://blog.skyad.com/recruitment/topic/facebok-ads)
- [improvisation (1)](https://blog.skyad.com/recruitment/topic/improvisation)
- [learning (1)](https://blog.skyad.com/recruitment/topic/learning)
- [millennials (1)](https://blog.skyad.com/recruitment/topic/millennials)
- [niche job sites (1)](https://blog.skyad.com/recruitment/topic/niche-job-sites)
- [productivity (1)](https://blog.skyad.com/recruitment/topic/productivity)
- [skill gap (1)](https://blog.skyad.com/recruitment/topic/skill-gap)
- [small business (1)](https://blog.skyad.com/recruitment/topic/small-business)

see all

Share this:

- [Tweet](https://twitter.com/share)

- [Facebook](https://www.facebook.com/Sky-Advertising-Incorporated-75688124575/?fref=nf)
- [Twitter](https://twitter.com/SkyAdvertising7)
- [Google](https://plus.google.com/+SkyAdvertisingNewYork)

Sky Advertising, Inc. 2022