Good morning!
For many people, submitting a job application can feel like a shout into the void. And although the jobs market as a whole is still strong, many hopeful candidates are learning that it’s not quite as easy to land an opportunity as it used to be.
Job applications have grown four times faster than position openings in 2024, according to a new report from Workday, a cloud-based software company. About 19 million new openings were added in the first half of 2024, which is a 7% increase compared to the same period of 2023. But while postings have increased, they haven’t kept pace with the surge in applicants. There were 173 million job applications sent out in the first six months of 2024—a 31% increase from the year prior.
Ashley Goldsmith, the CPO of Workday, tells Fortune there are a few macroeconomic trends at play, including layoffs in specific industries, and lower attrition rates across the workforce.
“We know that employees in many places have stayed put for a while, often seeking security and stability. And then when they have interest in making some changes, there’s not the same number of jobs to go and look for,” she says.
There is also another labor force trend that explains why job applications are soaring far higher than available opportunities. Phil Willburn, the VP of people analytics, insights, and experiences for Workday, tells Fortune that more workers are pivoting to different industries. This translates to a bump in applications sent out—before this tougher labor market, job hunters may have opted to “stay in their lane” by applying to fewer roles within the limited confines of their industry. But that may no longer be a choice when employers have the upper-hand in hiring.
“It’s a tougher job market out there, especially for candidates,” he says. “We’re starting to see cross-industry applications, so people who are in tech are applying for roles in education or business, while people in finance are applying to tech.”
While employers currently have more power in the hiring process, Willburn says there are ways for job-seekers to pivot in a wildly competitive labor market.
“Make sure you’re focusing on your skills, and then if these systems are pulling based on skills, make sure a lot of them are right,” he says. “Be open to a different industry. You might be thinking you want this career, but your skills actually match in this industry, and be open for that opportunity.”
Emma Burleigh
emma.burleigh@fortune.com
Around the Table
A round-up of the most important HR headlines.
Although recruiters are struggling to fill roles and the job market remains strong, job seekers are frustrated by applying to hundreds of roles without any response or a curt rejection. Financial Times
A new study predicts that U.S. employers will face a shortfall of six million workers by 2032 due to the gap between available jobs and professionals, as well as men’s declining participation in the labor force. Bloomberg
Most CEOs predict that workforces will fully return to office life within the next three years, because they believe the development and mentorship of employees is more effective in person. Business Insider
Watercooler
Everything you need to know from Fortune.
Labor movements. About 45,000 U.S. dockworkers across the east and gulf coasts are threatening to strike starting Oct. 1, demanding higher wages and a sweeping ban of automated equipment. —Tom Krisher, AP
RTO pushback. The man who created the term “presenteeism,” or employees who show up to the office but aren’t as productive due to health issues, is bashing companies forcing workers back in person. —Ryan Hogg
Fickle. Amazon’s five day RTO mandate might not stick, according to research—around half of U.S. companies asked workers to go back into the office last January, yet only a third kept their policy in place. —Orianna Rosa Royle
Favorite child. A majority of CEOs say they would give preferential treatment to in-person workers—with favorable assignments, raises, or promotions—because they associate working in the office to being more committed. —Sydney Lake
