The Best Jobs Offers Go To Employed Job Seekers, Analysis By New York Fed Finds

It turns out that unemployment, along with causing stress and financial heartache, also makes it more difficult to get the best possible job offer from an employer. A recent analysis of the Survey of Consumer Expectations by the New York Fed found that those who are already employed receive better job offers compared to the unemployed, in terms of salary and non wage benefits, like health insurance or retirement accounts.

Methodology

The method was through a large-scale survey. This survey was conducted in four waves stretched between 2013-2016. The survey asked individuals about their job search habits and their employment status. It used a few metrics of labor force participation, like labor force status at the time of an offer.

Findings

Job seekers who already had a job received salary offers that were 48 percent higher than their unemployed counterparts'. Employed job seekers also received more job offers and could be more selective in accepting offers. They’re also more likely to get contacted for jobs through unsolicited channels: recruiters, employers, or headhunters make the first contact.

Unemployed job seekers received more jobs that offered fewer hours and less benefits. This was an average trend, however. Some individuals still received lucrative jobs and job offers while unemployed.

The situation of the job seeker matters. An employed job seeker feels less pressure than a person who doesn't have a job. They’re also able to put less effort into the process; they can use their professional networks, current references, and be more selective during the entire process. At the end of the day, this leads to a higher salary and better benefits. Overall, they have a better bargaining position compared to the unemployed.

Unemployed job seekers have to deal with the financial pressure of not having a job. It might be hard to pay for necessities like rent, food and car insurance. The added pressure and stigma related to unemployment forces these job seeks to take suboptimal offers with lower pay and benefits.

If you’re unhappy with your job, it may be worth it to stay until you find another opportunity. You may find yourself spending less effort on the job search and receiving better offers.