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There’s not a job shortage, there’s a candidate shortage: CareerBuilder CEO

Careerbuilder CEO Irina Novoselsky joins Yahoo Finance to discuss the May jobs report and the labor market growth as U.S. states continue to post job listings at higher rates to attract employees back to the workplace.

Video Transcript

MYLES UDLAND: Let's talk about what some job hiring sites are seeing in the backdrop of the government's official data. Joining us now to discuss is Irina Novoselsky. She is the CEO at CareerBuilder. So Irina, let's start with how you guys are seeing the labor market recovery on your end of the equation. With a couple of months now, the non-farm payroll figures coming in below where Wall Street had expected.

IRINA NOVOSELSKY: Yeah, from what we see, the unemployment numbers aren't really capturing the full dynamic of what's happening in this hiring market. It's actually a really wide dichotomy. On one hand, you're seeing unemployment come down, and still pretty high at a little under 6%, which is still millions of people unemployed. However on the other side, we're seeing the highest job posting that we've seen. Really an all-time high, meaning companies are looking for candidates. And yet they're not getting filled.

And this is the ironicy that is happening, that I don't think we would have believed that this would be post COVID the conversations were happening, but candidates are not applying to jobs. And we've been talking about it. And one of the things that we look at a lot is the NFIB Index, and it is a 48-year high. 48% of small businesses can't find candidates to fill jobs. And the fallacy is, is that it's only unskilled labor. It's actually very much so skilled workers as well.

JULIE HYMAN: Hey, Irina, it's Julie, it's good to see you. So what I'm curious about, is less the posting side of the equation, because we've seen lots of data, including yours, that shows the postings are high, and the filling of the postings part of the equation. Because we keep trying to figure out, is there a job shortage, right? What exactly is going on out there? What do you seeing on your site? Do you have a good insight into how many of those jobs that are getting posted are being filled, where they are, where they aren't?

IRINA NOVOSELSKY: There's not a job shortage from what we see. What we have, is a candidate shortage, and it's coming from a few different things. So it's partially from unskilled workers, which we've talked about, and it's all over everything. That it's tied to unemployment and COVID and the returning back to the workforce. However, one of the things that we're seeing is the biggest population of candidates that fill jobs are actually switchers, people who have jobs today that are looking for a different kind of opportunity.

And that is also a huge group that we're seeing just not participate in the workforce, for many different reasons. Whether they're moving, we're seeing a lot more moving and people looking for different cities of employment, and as a result, they're a little bit more uncertain on switching jobs. They'd rather stay with the job that they're in. We're seeing that there's a whole generation that has left the workforce early. Pre COVID, we had a five generation employment workforce. And we're seeing one of the generations that was really close to retirement is saying, I'm just not going to participate. And throughout COVID, they took themselves out of the workforce.

We're also seeing schools. Most schools are still in this hybrid environment that's really creating uncertainty for parents, and they're delaying changing, delaying going back in the workforce, if they came out of it. And so the conversation is really taken with unskilled workers and the unemployment benefits. However, what we're seeing, is about the same amount percent not applying on the skilled workers as well.

BRIAN SOZZI: Irina, I was reading a story before we came to air today on how JPMorgan just posted three or four jobs looking for folks in the cryptocurrency space. Are you seeing that sector absolutely blow up right now?

IRINA NOVOSELSKY: We are seeing growth in it, but interestingly, we're seeing people not look for full-time work because of the NFT market. They're making side money and they're no longer looking to fill full-time hours. And so they're pulling back on the hours that they're looking to work based on what's happening in the crypto market.

MYLES UDLAND: Well, there you go. I mean, if you make money in your side hustle, it's not a side hustle anymore. It just becomes the main hustle Irina, we have about 30 seconds left. Before I let you go, I do want to ask just quickly about work from home and what you guys have seen, if you can see on how much employers want employees back, how picky employees are about remote only type jobs, and how that conversation from your vantage point, how that's evolved in the last few months.

IRINA NOVOSELSKY: Yes, yes, and yes to everything you said. So we ran a lot of surveys, and it looks like 73% of candidates want to have a remote work from home option. We're also seeing that about 53% of thousands of the companies that we've polled are offering a hybrid, which leaves a really big gap in the employment market of companies not being willing to offer, of those who can, an employment situation that's more flexible.

And that is going to be a big leading driver of candidates looking to switch. It's the number one thing that candidates are searching for. It's one of their key and main decision criteria for making a decision to switch right now and a really big influencer to leaving a job. And the fact that only about 50% of companies are looking at it from a hybrid perspective, it's going to be a driver in the talent war.

MYLES UDLAND: Yeah, and it's, you know, it's funny, we were chatting in the break, we are looking at our return to office, but no firm plans yet. And I think all this certainly factoring into how our parent company is thinking about these future decisions to make on where we will all--

IRINA NOVOSELSKY: And how excited you guys are potentially to coming back in the office or not.

MYLES UDLAND: Well, I think yeah, I think it depends who you ask. Look, on the other side of this screen, there's a lot of expensive equipment they came and put in my house, and I mean, I think this works great. So we'll see, we'll see what Yahoo thinks about that in the months ahead. All right, Irina Novoselsky, CEO at CareerBuilder. Irina, always appreciate the time. Thanks for jumping on.