The Indiana Workforce Snapshot provides a quick look at the labor-market trends Indiana employers should be watching — and our perspective on what those trends could mean for hiring decisions.
When you’re trying to hire, a 3.3% unemployment rate can sound like bad news.
It’s easy to assume there simply aren’t enough people available. But Indiana’s latest workforce data tells a more nuanced story.
Indiana’s unemployment rate was 3.3% in June, compared with 4.2% nationally. At the same time, the Indiana Department of Workforce Development identified a potential-worker pool of 159,676 people.
Of those, 114,976 were actively seeking work. Another 44,700 wanted a job and were available to work but weren’t actively looking.
That distinction matters, because available talent and active applicants aren’t the same thing.
Your next hire may not be looking for you
When employers think about the available talent pool, they often think first about people actively applying for jobs.
That’s only one part of the market.
Some people want to work but aren’t actively searching. And there’s another important group outside the unemployment numbers entirely: people who are currently employed but may consider the right opportunity.
We see that regularly in our work with candidates. Many strong candidates aren’t scrolling job boards or even thinking of themselves as job seekers.
That doesn’t mean they won’t move. It means they need a reason to.
Posting the job and recruiting for the job are different things
There were 100,062 open job postings in Indiana in June, an increase of 6.2% from April. Compare that with 114,976 potential workers actively seeking employment, and demand is already high relative to active supply.
And employers aren’t actually choosing from all 114,976 people.
Once you account for skills, experience, compensation and other requirements, the realistic candidate pool can get small quickly.
That’s why posting a job and waiting for applicants may not be enough. Recruiting means looking beyond the people applying today to identify people who could be right for the opportunity, even if they aren’t actively searching.
A strong candidate needs a reason to move
Reaching an employed candidate is only the beginning. The next question is: Why should that person leave?
Compensation matters, but candidates increasingly evaluate the entire rewards package. Health insurance, PTO, flexibility, hybrid work, career growth, leadership and other factors can all influence whether changing jobs makes sense.
That means matching what someone makes today isn’t necessarily a compelling offer.
Changing jobs carries risk. As we noted in our Q2 Indiana Workforce Snapshot, a new opportunity has to offer something meaningful, whether that’s total compensation, flexibility or simply a better fit.
The numbers don’t prescribe the hiring strategy.
The same labor-market statistic can lead to very different hiring recommendations.
For one employer, a limited pool of available candidates may make direct hire the better approach because reaching employed talent is critical. Another may need immediate help and have more flexibility around experience, making temporary or contract staffing a better solution.
And sometimes the problem isn’t the talent market at all. Compensation may be misaligned, requirements too restrictive or a lengthy interview process may be causing good candidates to drop out.
That’s why a statistic like 3.3% unemployment doesn’t automatically tell an employer what to do.
Data informs the decision. Your specific hiring situation determines what the data means.
What should employers do now?
If a position is proving difficult to fill, look beyond the number of applications you’re receiving and consider:
- Are we reaching people who aren’t actively applying?
- What would make an employed candidate consider this opportunity?
- Are our compensation and total rewards competitive?
- Are all of our job requirements truly essential?
- Is our hiring process keeping strong candidates engaged?
- Could temporary, contract or another flexible approach solve the immediate need?
Those questions can reveal much more about a difficult search than the unemployment rate alone.
Introducing the Indiana Workforce Snapshot
Our Q2 Indiana Workforce Snapshot provides a quick look at the labor-market trends Indiana employers should be watching, and our perspective on what those trends could mean for hiring decisions.
This quarter, we look at Indiana unemployment, open jobs, the potential-worker pool, industry job growth and the implications we’re seeing for employers.
Labor statistics can tell you what’s happening across Indiana. Applying them to a specific position requires a different conversation.
If you’re wondering what we’re seeing for the type of talent you’re trying to hire, let’s talk. We’re happy to compare what’s happening in the broader market with what you’re experiencing inside your organization.
