HR News Update

Report: Economy Is Weakening Job Candidates' Bargaining Power

According to a new report, the current state of the U.S. economy is "casting a shadow on the psyches of job candidates," as they have become less aggressive when it comes to bargaining for starting salaries when looking for a new job.

The Jobfox report (the Jobfox Top 25 Most Wanted U.S. Job Candidates) found that salary expectations for job seekers have "remained flat or have decreased" since March 2008. This trend was found among all 25 of the most "in-demand" professions--none of the candidates in these professions had increasing median salary range expectations. Candidates from nine of these professions had decreased salary expectations (at some point since March) and the remaining 16 professions remained flat in terms of job seeker salary expectations, according to Jobfox.

"It's an employer's market right when it comes to salaries," Jobfox CEO Rob McGovern said in a press release. "Companies are concerned about budgets and corporate bottom-line challenges have rubbed off on job seekers' salary negotiations."

Jobfox noted that job seekers must contend with the fact that employers are "feeling the pain" of the economy. Furthermore, employers are increasingly making use of cost-control strategies, including a "greater reliance on bonus programs and other pay-for-performance compensation models."

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