Relocating for a Job?

As the unemployment rate continues to inch down and as more private sector jobs are being created, job seekers may be considering relocating to obtain a new job. Challenger, Gray and Christmas, Inc has been tracking job seeker relocations since 1986 and their Challenger Job Market Index showed the following trends of those finding employment relocated for their new job:

2006      16.5%

2007      14.7%

2008      11.6%

2009      13.3%

2010       7.3%

2011       9.4%

Maybe job seekers are now considering moving to states with below national average unemployment rates. Companies are still mining the local talent pool and not paying for relocations. I would guess that most companies do not even look at a resume with an out of state address.

However, as the local talent pool is exhausted, companies will again expand their recruitment efforts to other states. The problem will be the reluctance of those seeking a job to move because of the price of their home. Companies will have to start to consider the “home” as being the major reason for finding qualified talent.

The other aspect is that companies are seeking less experienced talent with less “baggage” as they hire outside of their local talent pool. The older workforce have the talent, experience, and know-how to immediately help a company but are not being considered because they have a home to sell!

If companies are reluctant to pay for out of area talent, their expansion will slow down and will wait for a better economic climate.

The cycle continues.

As Housing Goes……So Goes the Economy