Candidate Hiring Stigma: Should Length of Unemployment Affect Hiring?

Why is it Considered a Stigma to be Unemployed?

Unemployment is often considered a stigma due to societal perceptions and biases. Many people associate the length of unemployment with a lack of skills, outdated knowledge, or personal shortcomings. This stigma can lead to unconscious bias in hiring processes, where employers may favor candidates with shorter employment gaps.

Did you know that in 2023, the average time people were unemployed in the US was 21 weeks? That’s nearly 5 months of job searching, resume updating, and interview prep. But for many job seekers, this unemployment period can become an unexpected hurdle in their career.

Why? Because of the “unemployment stigma.”

What is the Unemployment Stigma?

The unemployment stigma refers to the negative perceptions and biases that employers and society often hold against people who have been out of work for a long time. Recent studies have uncovered a troubling trend: the longer a person remains unemployed, the harder it becomes to secure a new job. 

This stigma of unemployment persists even as job opportunities increase, creating a challenging cycle for those out of work for extended periods.

What the Data Reveals on the Length of Unemployment and Hiring

A recent article by the Washington Post confirms how recruiters often prefer employed candidates over actively job-seeking unemployed ones. Professor Ofer Sharone interviewed 139 people who had been unemployed for a long time, and he uncovered some eye-opening insights.

Sharone found that as job seekers remain unemployed for longer periods, the “unemployment stigma” starts to take a toll. This stigma can damage their mental health, self-confidence, and even their relationships. And as their confidence and well-being suffer, it becomes even harder for them to find a new job.

Sharone also spoke with recruiters, who confirmed that all else being equal, they often prefer to hire “passive” candidates who are currently employed over those who are actively looking for work. The longer someone remains unemployed, the more employers may see them as “unemployable.”

Unemployment Stigma: Why Does Length of Unemployment Matter?

Why do employers seem to favor candidates with shorter unemployment periods? Several factors contribute to this bias:

• Skill Concerns: Some companies worry that if you’ve been out of work for a long time, your skills may be outdated.
• Perceived Talent: According to Time, there’s a misconception that if someone is highly skilled, they would have been hired already.
• Unconscious Bias: Hiring managers may unknowingly favor recently employed candidates.

The Hidden Strength of Long-Term Unemployed Candidates

While the unemployment stigma persists, it’s crucial to recognize the unique qualities that long-term unemployed individuals bring to the table. As noted in a Harvard Business School article, these candidates often demonstrate exceptional qualities such as:

Resilience and Adaptability: Facing repeated rejections and continuing the job search requires significant mental fortitude and the ability to adapt.

Diverse skill sets: Many long-term unemployed people use the time to develop new skills, volunteer, or do freelance work, broadening their expertise.

High motivation: After an extended period of unemployment, these candidates are often highly motivated to prove themselves and make meaningful contributions.

Problem-solving skills: Navigating long-term unemployment often requires innovative thinking and resourcefulness, valuable traits in any work environment.

Fresh perspectives: The unique experiences gained during unemployment can bring new insights and approaches to your organization.

Tips on Hiring Long-Term Unemployed Candidates

To overcome the bias against long-term unemployed candidates, here are some things employers can do:

Focus on Skills

Pre-employment assessments offer an unbiased way to gauge a candidate’s abilities, focusing on skills and potential rather than employment gaps. These assessments can evaluate technical skills, problem-solving abilities, and cultural fit, providing a more objective view of a candidate’s suitability for the role.  

Why not shift your focus to what a candidate can achieve, not just where they’ve been for the past few months?

Implement Blind Resume Reviews

Remove identifying information such as names, dates, and addresses from resumes during initial screenings. Blind resume reviews can level the playing field for long-term unemployed candidates, which makes sure their applications are judged on merit alone.

Consider Transferable Skills

Look beyond direct job experience and consider how skills from different industries or life experiences might apply to the role. Long-term unemployed candidates often develop valuable skills through volunteering, freelancing, or personal projects.

Wrapping It Up

The length of unemployment doesn’t define a candidate’s worth. Their potential could be your team’s greatest asset. Remember, the perfect addition to your team might be someone who’s weathered the storm of long-term unemployment and is now ready to make significant contributions.

If you’re ready to fight the unemployment stigma, start by shifting your focus. One proven way to do that is to use pre-employment tests to add verified skills and abilities to the hiring process.