Since the pandemic began, there have been a record number of layoffs across the country. Unemployment shot up from 3.8% in February to 14.7% in April. Thankfully, the jobless rate dipped to 10.2% by July, but unemployment remains high, and some economists worry a continued weak economy could spur more layoffs.
Some industries — including construction, grocery, delivery services, and home improvement — are thriving. Others — such as airlines, hotels, and restaurants — are struggling. More than 40 million Americans have lost jobs and filed for unemployment since the pandemic began.
With some sectors prospering and many people looking for work, this is a good time for employers to reexamine their preference for hiring people who are presently employed.
Historically, there’s been a negative feeling or bias against hiring laid-off workers. Some job postings even included requirements that applicants be presently employed. As a result, many hiring managers excluded applicants who lost jobs through no fault of their own. There remained a perception that laid-off workers were less hardworking or persistent than employed job-seekers.
There’s also been a perception that such candidates were not as qualified, given that they weren’t deemed essential enough to be kept by their former employers, or that their skills weren’t as good as others who remained employed.
In weighing whether to hire laid-off workers, companies should consider the distinction between short-term and long-term unemployment. Short-term unemployment is very common now. Long-term unemployment extending back to before the pandemic began is more concerning.
When unemployment was at low levels in late 2019 through early 2020, most motivated workers would have been able to find new positions. So it’s understandable that hiring managers might be wary about hiring applicants who spent six or more months unemployed during that period.
Never have so many employees been laid off in such a short period of time. Just about everyone knows someone who has lost a job. This situation should create more empathy toward laid-off workers — but there is also a strong business case to be made for hiring these workers, including:
There are many strong reasons for hiring job-seekers who are presently out of work, but charity is not among them. Laid off or not, applicants must still prove they are the right fit for the job. Workers who have been laid off from a previous job can become great assets. It’s not that they warrant special consideration in comparison to employed workers. It’s that you should not overlook them considering the advantages and value they can bring to your organization.