A22-05-196

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 There are a variety of factors that can influence the length of time an individual spends
looking for a job. Some of these factors include the individual's level of education, work
experience, type of industry, and the current state of the economy. This report tries to use both
economic theory and real-world data to find out how these factors affect the length mentioned
above.

The current state of the economy

When the economy is doing well, there are more job openings and job seekers are more
likely to find a job quickly (Sandefur and Cook, 1998). However, during economic downturns,
there are fewer job openings and individuals may spend more time looking for a job. The
relationship can be illustrated using economic theory. When labor is in high demand, employers
are willing to pay more for workers and workers are able to find a job more quickly (Pissarides,
1986). However, during economic downturns, when the demand for labor is low, employers are
not willing to pay as much for workers and workers may have to spend more time looking for a
job.

A study by the Federal Reserve Bank of St. Louis, found that the ratio of job openings to
unemployed workers declined sharply in the Great Recession economic downturn, from a ratio
that was 0.7 in 2007 to a ratio of 0.2 in 2009 (BLS, 2010). This decline in the ratio of job
openings to unemployed workers in the period of the Great Recession again suggests that
individuals were spending more time looking for a job during this period.

There is a great deal of empirical evidence to support the idea that the length of time an
individual spends looking for a job is influenced by the availability of jobs. For example, a study
by the Bureau of Labor Statistics found that, during the Great Recession, the average time spent
looking for a job increased from 19.8 weeks to 36.5 weeks. This increase was due to the fact that
there were fewer jobs available during the recession (Elsby et al., 2010). 

Level of Education and Work Experience

Individuals with higher levels of education and more work experience are more likely to
find a job quickly (Oswald-Egg and Renold, 2021). This is because they have the skills and
qualifications that employers are looking for. Employers are willing to pay more for workers
with more work experience, so these individuals are able to find a job within a short length of
time. Additionally, individuals with rare or in-demand skills may be able to find a job more
quickly than those without such skills.

The National Bureau of Economic Research indicated that, on average, individuals with
a college degree found a job in 8.7 weeks, while individuals without a college degree took 16.1
weeks to find a job (Ilg and Theodossiou, 2012). The study also found that individuals with more
work experience were more likely to find a job quickly.

Type of industry

The type of industry an individual is looking for a job in can have a significant impact on
how long it takes to find employment. Industries that are growing rapidly or are in high demand
often have more job openings and can therefore be more difficult to find a job in (Davenport and
Short, 1990). On the other hand, industries that are shrinking or have high unemployment rates
often have fewer job openings and can be easier to find a job in. For example, during economic
downturns, it may take longer to find a job in manufacturing or construction than in other
industries.

There is a great deal of empirical evidence that supports the idea that the particular
industry in which an individual is looking for a job can have a significant influence on the
amount of time that is spent looking for a job. Research carried out by the National Bureau of
Economic Research found, on average, it takes longer to find a job in manufacturing or
construction during economic downturns (Jaimovich and Siu, 2012).  Additionally, a study by
the New York Federal Reserve Bank found that individuals in the finance and insurance
industries spent, on average, more time looking for a job than those in other industries.

According to empirical evidence and economic theory, the industry in which a person is
looking for a work can have a significant impact on the amount of time spent looking for work.
Additionally, the current state of the economy can also influence how long it takes to find a job
in a particular industry. Other things that can affect how long it takes someone to find a job are
their level of motivation, how persistent they are, how well they network, how much competition
there is for jobs, and where they are looking for work.
 References

Davenport, T. H., and Short, J. E., 1990. The new industrial engineering: information technology
and business process redesign.

Elsby, M. W., Hobijn, B., and Sahin, A., 2010. The labor market in the Great Recession (No.
w15979). National Bureau of Economic Research.

Ilg, R. E., and Theodossiou, E., 2012. Job search of the unemployed by duration of
unemployment. Monthly Lab. Rev., 135, 41.

Jaimovich, N., and Siu, H. E., 2012. Job polarization and jobless recoveries (No. w18334).
National Bureau of Economic Research.

Oswald-Egg, M. E., and Renold, U., 2021. No experience, no employment: The effect of
vocational education and training work experience on labour market outcomes after
higher education. Economics of education review, 80, 102065.

Pissarides, C., 1986. Unemployment and vacancies in Britain. Economic policy, 1(3), 499-541.

Sandefur, G. D., and Cook, S. T., 1998. Permanent exits from public assistance: The impact of
duration, family, and work. Social Forces, 77(2), 763-787.