Housing Market Sees A Positive Impact With New Hiring Requirements

There are many filters employers use when searching through applicants for a job opening. Sometimes good talent might fall through the cracks when too many filters are required. To tap into

more talent, employers are tabling some requirements that have been previously used to filter out potential talent.

Employers are trying to find ways around the current tight job market by cutting down on hiring cost. In order to cut down on the cost they are offering more money upfront, they are lowering their standards and they are retaining their existing employees to fill new roles. For example, Hasbro a large toy company, took four marketing jobs (requiring an MBA) and split the jobs into eight lower-level positions. Other companies report they have skipped drug testing, criminal background checks and lowered education requirements.

The Wall Street Journal reported that jobs requiring a college degree went from 32% to 30% in the first half of 2019. For entry-level jobs, experience requirements dropped from 29% in 2012 to currently 23%.

With more jobs available to more candidates the demand for housing will rise. Multifamily will be the most in demand because of the rising cost of living and high single family home prices.

“Some of the new employment gained from lowered hiring requirements will bring second or third incomes to households, and it is definitely positive news for supporting housing demand. For a single person going from jobless to employed, it is good for that person to develop new on-the-job skills, but it will not immediately contribute to housing demand, since these jobs are likely to be entry level and pay below the average wages,” says National Association of Realtors Chief Economist Lawrence Yun.

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