The way companies hire is always changing.
It seems like yesterday when LinkedIn was introduced. Now everyone is asking for endorsements.
To say 2020 was eventful is an understatement.
In March and April combined, 20 million jobs were lost and 4 in 10 U.S. workers were doing their jobs full-time from home.
This turnover majorly impacts the entire job market.
And it’s only one of the many interesting statistics for the year.
In this article, we’re going to cover the most important and relevant statistics for 2020.
- The current market job situation
- The most common recruiting trends
- The importance of social media in job-search
- The most in-demand jobs for 2020
- Top skills recruiters are looking for
- What’s the typical hiring process in 2020
- Diversity in the workplace
What is the General Job Market Situation?
As you will notice from the numbers below, this year’s statistics were anything but constant.
After a relatively normal January and February, there were drastic changes following the spread of COVID-19 in March.
Check out these statistics to learn more:
Employment and Job Market
As of October 2020, the national unemployment rate for 2020 is 6.9%. The year started with an unemployment rate of 3.6% in January. After March, the rate rose until it peaked at 14.7% in April. Since then, it started its decline (at a slower pace) and reached 6.9% in October. This is almost double the unemployment rate of October 2019 (3.6%). Source: Bureau of Labor Statistics
There are 2.5 people per each job opening (as of September 2020). This number is lower compared to the 4.6 ratio in April, but very far from the pre-pandemic one. Since March 2018, the number of job openings has exceeded the level of unemployment. Source: Bureau of Labor Statistics
4.7 million workers (3.4% of the US population) were already working remotely as of February 2020. Source: Global Workplace Analytics
There were 18% fewer job applications from 35-44-year-olds in October 2020 compared to October 2019. There were 17% fewer applications from the 25-34-year-old age group. This indicates that professionals are avoiding risk in changing jobs in the current environment. Source: iCIMS
21.2% of employed persons teleworked because of the coronavirus pandemic (October 2020). Source: Bureau of Labor Statistics
The average employee tenure for all occupations in the US is 4.1 years. For employees aged 55 to 64, the average tenure is 9.9 years. For younger employees (25 to 34), it is 2.8 years. Source: Bureau of Labor Statistics
Employment in leisure and hospitality is down by 3.5 million since February 2020. This is the industry that suffered the biggest drop in employment levels. Professional and business services suffered the second biggest drop with employment 1.1million below the February level. Source: Bureau of Labor Statistics
There was an overall increase in wages in 2020.
The average salary for U.S. workers in 2020 was $ 1430 per week or $74,378 yearly for a 40-hour week.
25+ years old employees without a high school degree earned an average of $30,784 annually. Those who are high school graduates earned an average of $38,792 annually.
Workers who have at least one bachelor’s degree earned an average of $64,896. Those who have more advanced degrees (Master’s, MBA, Ph.D. or other) earned an average of $90,844. Source: Northeastern.edu
Men aged 45 to 54 had the highest annual earnings at $66,092.
Whereas for women, earnings peaked at the ages 35 - 44 at $52,572.
Women earn 81 cents for every dollar earned by men. There is a 2% improvement from 2019. Women of color, however, earn 61 cents for each dollar a white man earns. Source: Payscale
Independent consultants can make an average of $97,000 annually. The average salary of a consultant is $75,000. The annual average salary of a management consultant is about $85,000. Source: consulting.com
What are the Most Common Recruiting Trends?
14% of companies are on a total hiring freeze as a result of COVID-19. 43% have continued hiring normally, and another 43% in only hiring for specific necessary roles. Source: Lever State of Recruiting Report
After the freezes lift, hiring priorities are expected to change for companies. 45% say they will focus on hiring more mid-level managers, 42% will focus on hiring more junior and entry-level positions, 30% will be hiring more senior leadership, and 24% claim nothing will change. Source: Lever State of Recruiting Report
Since May 2020, there’s been a sharp rise in women being hired for positions with 6-figure salaries. Women of underrepresented racial or ethnic groups have led this change with hires up by 71%. Source: iCIMS
54% of recruiters offer additional training and development to overcome talent shortages. If they can’t find candidates with the needed skills, they train them for the job. Source: Manpower Group
Only 27% of businesses disclose salary and wage rates publicly. Source: LinkedIn
Job applications increase by 34% when a video is included in the job posting requirements. Source: CareerBuilder
Since 2014, there has been a 2.4X increase for LinkedIn members whose job titles include “employee experience”. Source: LinkedIn
73% of recruiters say advancements in people analytics will be a priority for their companies in the next 5 years. Source: LinkedIn
The top 4 trends that are expected to shape hiring in the upcoming years are:
- Employee Experience (94%)
- People Analytics (85%)
- Internal Recruiting (82%)
- Multi-Generational Workforce (74%)
Source: LinkedIn Global Recruiting Trends Report
One third of recruiters say that at their companies, 50% or more positions are being filled remotely. Source: Jobvite
Social media, employee referral programs, and job boards are the recruiting areas where financial investments are expected to rise in the next 12 months. Source: Jobvite
36% of recruiters say AI (Artificial Intelligence) has made their jobs better. AI is mostly being used by recruiters for job recommendations (34%) and candidate matching (32%). Source: Jobvite
How Important is Social Media for job-search?
Just about 20 years ago, there was no social media.
Hard to imagine, right?
Now, it plays a huge part in both your day-to-day life, and career.
Here are 6+ statistics that show how important social media is to your job search:
This year, at least 67% of recruiters leaned on LinkedIn research for hiring employees.
51% of job seekers claim they prefer finding job opportunities on online job search websites. Source: Glassdoor
Advertising an application process as mobile-friendly can increase the number of job applicants by 11.6%. That’s because 35% of job seekers say they would prefer applying from their phone. Source: Glassdoor
84% of organizations use social media to recruit their employees. One-third of companies advertise on mobile to source candidates. Source: SHRM
70% of job applications get disqualified by applicant tracking systems without being read. This statistic emphasizes how important it is to tailor your resume to the job you’re applying for. Source: CareerArc
70% of employers turned down a job application because of the information they found on the candidate’s social network. The primary type of content that caused this rejection (at 40%) was provocative photographs. Other behavior recruiters responded negatively to are: drinking, doing drugs, discrimination, poor communication, lies about qualifications, etc. Source: CareerBuilder
60% of recruiters appreciate and give bonus points if a candidate’s social media shows engagement in local or national non-profits. Samples of written or design work were also viewed favorably. Source: Jobvite
1 in 3 job applicants has shared at least one negative review of a previous job or employer. 55% of job applicants who read a negative review of a job decided not to apply for the position. Meaning, company reputation IS really important for hiring the right talent. Source: CareerArc
What are the 10+ Most In-Demand Jobs?
What is the future workplace going to look like?
What jobs are and will continue to be high-demand?
The demand for healthcare workers surpasses the supply. Since January, job openings were up by 23%, but hiring was up by only 3%. Source: iCIMS
According to LinkedIn, here are the top 10 in-demand positions in 2020 and beyond:
Change in rank: no change
2) Registered Nurse
Change in rank: no change
3) Software Engineer
Change in rank: no change
4) Tax Specialist
Change in rank: +17
This position had the biggest change in rank.
Change in rank: no change
6) Food Driver
Change in rank: -2
Change in rank: +3
Change in rank: +8
9) Project Manager
Change in rank: -2
10) Retail Salesperson
Change in rank: +10
The fastest growing industries according to IBISWorld are:
- Online Grocery Sales: 74.5%
- Cough & Cold Medicine Manufacturing OTC: 68.8%
- 3D Printing & Rapid Prototyping Services: 28.8%
- Online Pet Food & Pet Supply Sales: 28.5%
- Hydraulic Fracturing Services: 27.8%
- High Frequency Trading: 27.4%
Region-wise, as of September 2020 in the U.S.A, there were job openings (in the thousands) in:
- The West: 1,410
- The South: 2,532
- The Northeast: 1,116
- The Midwest: 1,378
Source: Bureau of Labor Statistics
What Skills are Recruiters Looking For?
Hard skills are what get your foot in the door.
But in today’s circumstances, soft skills are what recruiters are looking for.
Over 60% of recruiters say they need to hire workers with skills that weren’t needed before.
The top skills employers are now looking for are:
- Adaptability (68%)
- Communication (60%)
- Technology Proficiency (55%)
- Resilience (47%)
- Change Management (28%)
Source: Lever State of Recruiting Report
The top 3 fastest growing skills for 2020 were:
- Customer Experience
- Digital Marketing
- Data Analysis
80% of professionals consider soft skills more important than hard skills to a company’s success.
92% of recruiters say that soft skills, including interpersonal skills, communication abilities, and critical thinking are crucial tools they look for in an applicant.
The top soft skills for employers are:
- Team-oriented (51%)
- Attention to detail (49%)
- Customer service (46%)
Source: The Harris Pool
68% of recruiters assess soft skills by picking on social cues during the interview.
For instance, if a candidate’s energetic, she’s a good collaborator.
But perceptions aren’t always accurate, they can even be unintentionally biased. 57% of professionals struggle to accurately evaluate soft skills.
Source: Job Vite
What’s the Typical Hiring Process in 2020
Do recruiters take a lot of time to evaluate an application?
How many get called in for an interview?
How long do you have to wait after sending a resume?
Read on to find out.
Content of the Application
An estimated 98% of companies use ATS (application tracking systems) or other hiring systems. Source: Jobscan
75% of recruiters can spot a lie on CV or Resume. Source: CareerBuilder
96% of professional employers say the candidates’ experience is becoming more important. Yet, only 52% of companies say they provide a positive employee experience. Source: LinkedIn Global Talents Trend Report
59% of recruiters will reject a candidate’s CV if it has spelling or grammatical errors. Take the extra time to perfect your CV and proofread it at least twice. Source: myjobmag
Pro Tip: Grammarly is an online proofreading tool that acts as your personal editor. Give it a try!
There is a 60% chance you will get rejected if your CV has poor formatting. Use formatting that is easily read by Applicant Tracking Systems. Source: Ladders
Using concrete numbers increases your hiring chances by 40%. Back up your work experience, responsibilities, and achievements with numbers to maximize your chances of landing the job. Source: Talentworks
Adding industry keywords and power words increase your hiring chances by 29%. Source: Talentworks
43% of professionals say half a page is the perfect length for a cover letter. Source: undercoverrecruiter
No experience? Don’t worry! For 87% of recruiters, a four-year college degree makes you competitive for an entry-level position. Source: iCIMS
A corporate position receives an average of 250 resumes per position. Source: EBI
It takes a recruiter only six seconds to review and evaluate a resume. Source: The Ladders
The best time to follow up after submitting your resume is 1 to 2 weeks. Don’t email the recruiter more than twice. A lack of response means you should move on to another opportunity. Source: Accountemps
60% of job applicants are likely to drop an application process if it’s too long. Source: empxtrack
62% of job seekers say they prefer the application process to be completed within 2 weeks. Source: Clutch
The average time it takes to fill in a new position is 27 days. Source: empxtrack
73% of recruiters say internal recruiting is increasingly important to their company. Up to half of job openings are filled internally before even being posted. Source: Linkedin Global Talent Trends Report
67% of job-seekers say they have had a negative experience when applying for a job. 27% of them say they would discourage others from applying to the same company. Source: empxtrack
20,8% of employers say they struggle to meet rising candidate demands. Source: empxtrack
As a result of the pandemic, 84% of recruiters have resorted to phone interviews, while 85% of them to video interviews. Source: Lever State of Recruiting Report
Only an average of 2% of candidates is called for an interview. Source: EBI
The average job interview is 45 minutes long. Source: livecareer
Companies have an average of 9 interview stages. Source: Lever
33% of HR Managers know whether they should hire a candidate in the first 90 seconds of the interview. Source: undercoverrecruiter
67% of HR Managers say not making eye contact is a common nonverbal mistake. Source: undercoverrecruiter
The most likely question to be asked in an interview is: “Tell me about yourself”. Source: undercoverrecruiter
61% of employees say that the actual job differs from the expectations set during the interview. Source: Glassdoor
47% of interviewers say they won’t hire interviewees with no company knowledge. Source: Twin Employment Training
Diversity in the Workplace
Diversity and inclusion-related job openings declined by 60% in the period from March through June. Since then, they have rebounded by 55% following a nationwide movement protesting systemic racism and racial injustice. Source: Glassdoor
76% of employees and job seekers report that a diverse workforce is an important factor when evaluating companies and jobs. About 32% of employees say they wouldn’t apply to a job at a company where there’s a lack of workforce diversity. Source: Glassdoor
Three top reasons companies focus on a diverse workplace are: to improve culture (78%), to improve company performance (62%), to better represent customers (49%). Source: Careerbuilder
Companies in the top quartile for racial and ethnic diversity are 35% more likely to have higher returns than the industry median. Source: McKinsey
Following the protests of the Black Lives Matter movement, the expansion of workplace diversity is expected to be at the forefront of employers’ plans. 50% of talent practitioners say this will become a priority. Source: Lever Recruiting Brief
66% of organizations have strategies for diverse hiring, but only 25% set gender diversity goals. Source: Jobbatical
The number of female CEOs at Fortune 500 Companies hit an all-time high this year. 37 of the companies are led by women. Source: S&P 500 List
89% of talent professionals say a multigenerational workforce makes a company more successful. Source: LinkedIn Global Talents Trend Report
Hispanics and Latinos make 8% of all US graduates, yet only carry 4% of the senior executive positions. Source: Glassdoor
Black and Hispanic women with either full or part-time jobs also typically earn 38 percent less and 46 percent less than white men, respectively. Source: The Institute for Women's Policy Research
White persons earn nearly $261 more in median weekly income than their Black counterparts. Source: The Institute for Women's Policy Research
Asian women earn 93 cents for each dollar a man earns and only 74.8% of what Asian men earn. Source: The Institute for Women's Policy Research
Gen Z workers are 135% more likely than Baby Boomers to be in a part-time job. Source: LinkedIn Global Talents Trend Report
Global Job-Search Statistics
Employment rates aren’t only looking up just for the U.S - it’s increasing all around the globe:
- India 37.8%
- Mexico 95.3%
- Asia-Pacific 58.8%
- Germany 75.8%
- UK 75.3%
- France 65.1%
- Australia 61.2%
- Brazil 47.1%
Source: Trading Economics and ILO
In this article, key takeaways are whatever YOU find valuable for YOUR job-search.
Our top picks?
- Compared to this time last year, employment rates are lower (hitting an all-time-low in April) and most people are avoiding taking risks by changing positions/careers.
- A lot of positions have become remote this year. As companies and employers are getting used to this dynamic, there is a high chance that some positions will remain remote in the upcoming years.
- Job interview processes have mostly shifted online through phone calls and video calls. Learn how to prepare for videos interview with our article.
- Soft skills are getting more well-deserved attention. Don’t forget the top 3 soft skills of 2020: adaptability, communication, and technology proficiency.
- Social media is an awesome tool to look for jobs. However, it can be a double-edged sword. A lot of recruiters monitor your social media for negative behavior.
- Companies have piles of applications and very little time. So carefully craft your resume and tailor it for the Applicant Tracking System.
- Diversity in the workplace has become a priority for most companies and is expected to remain so in the upcoming year as well.
- Gender and racial pay gaps are closing up, but there is still progress to be made.