Here’s what your unemployed friend is really doing on a Tuesday: In the latest sign of a stagnant job market, white-collar workers are flipping the traditional recruiting model by hiring recruiters to help them land their next jobs—a trend known as “reverse recruiting,” the Wall Street Journal reported this week.
Headhunters? More like breadhunters: On top of career coaching and résumé building, reverse-recruiting agencies often take the keys and apply to dozens of jobs on an applicant’s behalf. In exchange, these startups can charge monthly fees north of $1,000 and/or take a cut of their clients’ salaries once they find a job, per WSJ.
A conventional recruiter told WSJ that he’s somewhat uneasy about people handing reverse recruiters their LinkedIn or Workday logins, as well as the idea of charging job seekers.
This only happens in a bleak job market
The current frigid atmosphere in US employment is known as “low hire, low fire,” which is why you keep hearing seemingly conflicting truths: The unemployment rate isn’t that bad, but it’s also incredibly difficult to find a job.
According to recent federal data:
- Job searches now last an average of six months.
- There were more job seekers than job openings last summer for the first time since 2021.
- The economy added the fewest jobs since 2003 last year (outside of recessions). Tomorrow’s January jobs report is expected to revise the tally even lower and show a continued stall in job growth.
Why the slowdown? Tariff uncertainty and added costs led some companies to delay hiring. Others are still undoing pandemic-era hiring bonanzas, and some blame layoffs on AI’s productivity. Recent immigration restrictions also mean there are fewer consumers in the US, which can lower hiring needs, per WSJ.
Vicious cycle: Less than half of workers think they could find a new job in three months, according to a recent Fed poll. Many are staying put in their jobs, which contributes to low openings and slow hiring.—ML
This report was originally published by Morning Brew.