It’s no secret that inflation has infected our economy and prices are going up in all areas.
But according to labor market economist Andrew Flowers, the recruiting industry has been especially hard hit.
Three overarching factors explain why it has become a lot more expensive to acquire talent:
1. A tsunami of demand for workers across every industry. At this time last year, job openings surpassed the all-time high set in late 2018. And then proceeded to rise another 47%, peaking at over 11 million.
2. Job seekers are choosier and empowered with options. There remains 5.6 million people who say they want a job but are not actively searching for one.
3. Inflation is disproportionally affecting online advertising. For the 10 years prior to January 2021, online advertising costs had declined by 34% due to efficiencies and competition. But last spring, costs began to surge due to demand. Online advertising prices are now up 26% from a year ago.
Recruitment marketing is a subset of online advertising, but these trends still apply or worsen because of the tight labor market and choosy job seekers.
If you’re going to dip your toe into recruitment marketing, plan ahead and keep tight cost controls on your advertising budgets.
The online advertising vendors are experts at draining your account if you’re not paying attention.
