Why Employment Gaps Aren’t a Deal Breaker

But calling this a blanket “workforce shortage” might be misleading. Yes, it’s true that millions of workers have left their jobs for many reasons since the start of the pandemic, but there’s also more to the story. The latest numbers from the US Bureau of Labor Statistics show that more than 5 million people who are currently outside of the labor force say they want a job but are not actively looking for one or available to start at this time. And the number of long-term unemployed (those jobless for 27 weeks or more) was 1.7 million in February 2022. Together, these potential workers form a largely untapped talent pool at a moment when many employers are struggling to hire.

So what’s causing this disconnect between employers eager to find workers and workers eager to find employment?

Job seekers with barriers are often left behind

Research from Indeed’s Hiring Lab and Social Impact teams shows that job seekers who have been out of work for six months or longer often face barriers to employment. These can include limited access to reliable transportation or child care, gaps in employment history, a past criminal record or limited professional experience.

Here’s the catch: these barriers are irrelevant to a qualified job seeker’s ability to do good work. 

Consider the example of long-term unemployment. According to Peter Cappelli, Director of the Center for Human Resources at the Wharton Business School, “Employers are reluctant to hire the unemployed, despite no good evidence that the long-term unemployed cannot step back in and be productive again.” 

In a report sponsored by Indeed's Leadership Connect program, Cappelli cites multiple studies that show “when otherwise identical resumes are sent to employers, candidates who have been unemployed long-term get far fewer call-backs and interviews.”

In fact, these job seekers may have unique skills and experiences that help them excel. 

“In our survey, we discovered that these job seekers were being unfairly overlooked,” says Abbey Carlton, Global Head of Social Impact at Indeed. “Many possessed deep industry expertise, with six out of 10 having worked five or more years in their field before losing their job. And our respondents possessed nearly two-thirds of the soft skills evaluated” — including reliability, grit, work ethic, critical thinking and emotional intelligence.

So how can employers reach potential candidates who are currently outside of the labor force?  The first step is to drop negative assumptions about employment gaps, especially given the difficulties many workers have experienced during COVID-19. Instead, start by rethinking to identify more inclusive, objective ways to source and screen candidates. 

Don’t screen out quality candidates

First, assess how stringent your job requirements are. Job descriptions with a long list of desired skills can deter otherwise qualified candidates from applying. Similarly, minimum years of experience or education requirements can be arbitrary indicators of ability that tend to favor applicants with traditional backgrounds. And job seekers with barriers may have skills to offer but not the “right” experience or education listed in the job description — and are, therefore, commonly screened out early in the application process.

Here are a few ways to minimize the “screen out” mentality in recruiting:

• Trim job descriptions to include only the skills critical for the role. 
• Remove minimum education requirements that aren’t absolutely necessary.
• Ask for “level of experience” rather than “years of experience.”
• Don’t reject applicants outright due to gaps in employment history.
• Practice fair-chance hiring by removing the criminal record disclosure box from your job applications.

Screen them in instead

Now that you’ve removed any unnecessary requirements for the role, you can take your inclusive recruitment efforts a step further by “screening in” quality talent. Think about the skills required for your role. What transferable skills can attract candidates with diverse experiences and backgrounds? What parts of this role can be taught?

You can also expand where you source candidates. Here at Indeed, we partner with Goodwill to help job seekers who are overlooked or face barriers find work.

Goodwill President and CEO Steven C. Preston explains, “We work with employers to tap into populations of people they might not otherwise have access to and help candidates bring relevant skills and job readiness to the table.”

Adopt more objective screening tools

It can feel like the need for speed and efficiency is at odds with inclusive hiring practices, but it doesn’t have to be. For example, skill-based assessments allow job seekers to demonstrate their strengths and employers to more objectively assess candidates’ abilities based on the criteria they set, helping them find quality hires quickly.

And by taking advantage of screening tools like assessments, many employers skip the resume review altogether and get directly to an interview. Job seekers — especially those typically screened out early in a traditional application process — are eager to get in front of employers to sell their strengths and capabilities. Interviews also provide an opportunity for recruiters to better understand the nuances of job seekers’ unique circumstances rather than making snap judgments based on what they see on a resume.

Rethinking employment gaps to build more inclusive hiring practices

The COVID-19 pandemic pushed employment gaps into the mainstream as millions of US workers left the workforce. It’s time to forget outdated assumptions about job seekers who have been outside of the labor force, whether for a few months or much longer. 

At Indeed, we encourage employers to minimize the “screen out” mentality. Take a closer look at job requirements and remove anything unnecessary for the role. Instead, focus on skills-based hiring and consider using assessment tools to provide objective data on what a candidate can do.

By removing the stigma associated with long-term unemployment and designing a recruiting process that minimizes bias and “screens in” quality candidates, employers will access a more inclusive and expansive talent pool — and gain a competitive edge in this increasingly competitive labor market.