Today, I’ll continue a short series on several of the hiring trends (in the employment market at large) that we’ve noticed over the last few months, and how these trends could impact real estate recruiting.
If you missed last week’s post, catch up when you get some time or jump into the discussion now. Each of these topics will make sense on its own.
As I’ve been out and about over the last six months, I’ve noticed many more “Help Wanted” signs on display in store windows and other businesses. At least in Seattle, it seems like the job market has improved significantly.
Are you noticing the same thing in your area?
According to recent data released by the Bureau of Labor Statistics, this is happening in many parts of the country. Matt Phillips, a free lance writer and frequent contributor to the business blog Quartz recently made these observations:
Wow. The US labor market shifted into a higher gear in April, as 288,000 new jobs were created. The unemployment rate also tumbled from 6.7% in March to 6.3% in April…. The US is just 120,000 jobs away from recovering all losses from the Great Recession.
In the article, Matt goes on to explain the complexities of this data and how there are some additional factors that must be considered if you want to understand the whole picture.
However, this we know to be true: It’s becoming increasingly easier to find a job in the United States since things bottomed out four years ago.
So, here’s an important question: If the unemployment rate is trending lower (ie. it’s easier to get a job), does that help or hurt new agent real estate hiring?
I know this will sound counterintuitive, but it actually helps. Here is a trend that our company has noticed as we’ve sourced hundreds of thousands of real estate candidates over the last decade:
The lower the unemployment rate, the higher the number of people who will consider becoming real estate agents.
Most hiring managers and owners make the assumption that a tighter employment market would decrease the number of people considering a real estate job because there are more traditional jobs available and the competition for employees (at large) has intensified.
The opposite is true.
Why? The answer has to do with both opportunity and risk.
Understanding Opportunity. People tend to seek out opportunity as more jobs become available. During the recession, individuals who had jobs (especially good jobs) felt fortunate and hung on to those jobs tightly.
This doesn't mean they liked their jobs. In fact, many of them hated their jobs. So, when they start to see light at the end of the tunnel (more jobs becoming available) they are more likely to jump at new opportunities—including real estate opportunities.
Understanding Risk. Becoming a real estate agent involves much more risk than most career choices. If things don’t work out as expected, most people want to have a backup plan in place. That backup plan usually involves returning to a job or career they previously held.
In a low unemployment/robust job market, it's safe to assume that a talented person can get their old job back or find one similar at another company. Once the job market improves to a state where this sense of abundance is widespread, the risk of stepping into a real estate career does not feel so overwhelming.
Bottom line: That “Help Wanted” poster you’re seeing at your local mall is a positive trend for the real estate industry. The risk of moving into real estate is lower than it’s been in years and many talented individuals are finally ready to seriously consider new opportunities. Don’t miss your chance to recruit these individuals.
Editor's Note: This article was written by Ben Hess. Ben is the Founding Partner and Managing Director of Tidemark, Inc. and a regular contributor to WorkPuzzle.
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