Unemployment rate effects your company’s recruitment process. As unemployment shifts up or down, it creates an indirect relation that drives a power shift between recruiters and job seekers.


The unemployment rate is defined as the percentage of workers who are not currently employed and are actively looking for a job. Higher unemployment rates put recruiters in a strong position, while lower unemployment rates position job seekers higher.

In 2017, Arizona employers across industries continued to add jobs routinely every month as the valley area continue to grow. However, the start of 2018 showed that both Arizona and metro Phoenix lost jobs. While the national unemployment rate has decreased to 38%, we’re seeing an increase in unemployment locally.

According to the Phoenix Business Journal and the Arizona Office of Economic Opportunity, unemployment rates increased statewide in January. The unemployment rate in metro Phoenix came in at 4.5 percent in January up from 4 percent in December and 4.6 percent a year ago.

Arizona lost a total of 46,000 jobs in January. This is comprised of various industries including retail, construction, manufacturing, the private sector, etc. According to the Phoenix Business Journal, this total job loss is still less than the post-recessionary (2010 to 2017) average loss of 51,700 jobs.

As expected, retailers lost 11,700 jobs locally in January with the holiday shopping season over. The construction industry lost 1,700 jobs, manufacturing lost 1,000 jobs and bars and restaurants lost 2,000 positions to start off 2018, according to the Phoenix Business Journal and state economists. In the private sector the state lost a total of 32,900 jobs, posting a 5.1 percent unemployment rate in January, a full percentage point higher than the total U.S. unemployment rate.

Although Arizona’s unemployment rates have risen slightly in 2018, overall unemployment rates remain low nationwide. Lower unemployment rates mean more job openings and opportunities for the candidates. Job seekers have more options to choose from and don’t have to settle for less than what they deserve. Instead, recruiters have to work harder to attract top talent – they must make their brand stand out from the competition, create appealing compensation packages, and eliminate opportunities for rejection.

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