Understanding What Unemployment Rates Mean To Your Job Search
ningcontentAs you set out to find an entry level job in your chosen field, you will likely hear people mention several terms that may be unfamiliar to you. Many of these things have an effect upon the area of the job market you are seeking to enter so understanding some of the more important ones can be very helpful to your entry level job search. One of the most important phrases you are likely to hear discussed is the unemployment rate. Though you may already understand what the unemployment rate is, knowing its effect on the entry level job market can make the process of finding entry level positions much easier.
The unemployment rate is an average arrived at by figuring out how many people are unemployed as compared to the total number of people in an area. To give an example, a report by the U.S. Bureau of Labor and Statistics showed that the state of Michigan had the highest unemployment rate in March of 2008. The states unemployment rate at that time was 7.2% meaning that just over seven out of every one hundred people residing in the state during March of 2008 were unemployed.
Understanding what the unemployment rate means isn’t enough though. What this will do to the entry level job market is even more important. What can we deduce from unemployment rates from the perspective of an entry level job seeker? To continue with the example already cited, a 7.2% unemployment rate, would equate to stiff competition for available entry level employment opportunities. This competition would also lead to lowered salaries and less appealing incentive plans because the companies offering entry level jobs would have more applicants to choose from. To the inverse, a very low unemployment rate, such as the 2.5% rate of South Dakota in March of 2008, would indicate a growing economy with more entry level jobs than applicants. This lack of competition for jobs leads to higher wages and incentive plans designed to attract new recruits.
By understanding the principles which govern the entry level job market, you can use a knowledge of your areas economic situation to find the best opportunities for entry level jobs.
