Is a recession imminent?
As concerns about economic troubles continue to mount, experts are predicting that it may be inevitable. Signs pointing toward recession have been piling up for a while now, including the war in Ukraine, rising interest rates, continuing supply chain disruptions, and persistent inflation. According to the Federal Reserve, consumer prices rose 8.6 percent over the 12-month period ending in May of this year. GDP has dropped in each of the last two quarters.
If there is a recession, what impact will it have on the job market?
If a recession does occur, it will be the first one since February through April 2020 – and that one really should have an asterisk next to it, since we all know what happened in March two years ago. Before that, the last recession period on record was from December 2007 through June 2009.
Job losses are typically inevitable during recessionary periods – not something that’s been seen in a while now. If the inevitable does occur, employers will need to take a hard look at their planned recruitment spend and make adjustments as necessary. To look at the silver lining, at least businesses who have survived the upheavals of recent years are well-versed in pivoting when it comes to their plans and budgets!
- Be smarter about your spending. This is true all the time, but a necessary reminder when a recession looms. You may not need to spend as much money – we’ll talk about that below.
- Use your database more. Turn to the candidate pool you have cultivated and/or make it more of a priority. You may be able to keep your job advertising budget the same, but if you have to cut back, this is one place to turn. What is your process for sourcing candidates upon receiving a new job order?
- Prepare for more applications. It’s a good problem to have, but only if you can realistically manage to review all the applications that come your way. Plan your advertising in a way that allows you to effectively manage response levels.
What about sponsored job ads?
More candidates looking for jobs may mean you don’t need to sponsor as many ads. Direct your budget dollars toward jobs that really need sponsorship, versus those more likely to attract a plethora of applications.
- Use intelligent advertising to save money. Make sure your ads reach the right candidates without having to exhaust your budget too quickly. For instance, you may need more creative use of social media opportunities for organic reach or lower cost ads.
- Should you reduce your budget? If more people are searching for jobs, the supply and demand curve shifts from a LOT of open jobs to being more balanced. It’s vital to constantly evaluate your budget to determine which jobs need sponsorship and which jobs drive enough applications organically.
It may be time to partner with a pro.
When signs point toward a recession, it may be time to partner with a firm that has experience in leading companies through it from a marketing perspective. The veteran recruitment experts at Haley Marketing understand the different skillsets required, depending on what the global economic picture looks like. We’ve been providing customized marketing solutions for staffing firms since 1996, serving more than 1,400 clients ranging from solo recruiters to larger organizations with regional, national and international reach. Contact us today to set up a free 30-minute recruitment marketing brainstorm.
