Long-term unemployment seen holding back jobseekers

November 18, 2012 - by: Diversity Insight 3 COMMENTS

No law specifically says employers are prohibited from discriminating against job applicants who have been out of work for months or even years. The long-term unemployed don’t have protections spelled out in any antidiscrimination laws – or do they?

When jobseekers are part of a protected class that has a disproportionate number of people unemployed, they can begin to wonder if they’re stuck in unemployment because of their race, age, gender, disability, or some other characteristic protected under discrimination laws. The Equal Employment Opportunity Commission (EEOC) has been wondering the same thing.

The issue made headlines at the height of the recession, and the EEOC even held a hearing in February 2011 to explore the problem. Sparking the hearing were complaints that some employers were requiring applicants to be currently employed or recently out of work, effectively shutting out people who had been searching for employment for months. Some employers exclude longtime unemployed candidates because of a belief that their skills have eroded while they’ve been out of work or that they never were strong employees.

Members of the EEOC heard testimony from experts on both sides of the issue, with advocates for the unemployed maintaining that members of minority groups are especially hard hit by hiring policies that exclude the unemployed and business representatives arguing that excluding the unemployed is rare and creating another protected class would be a burden on employers.

Complaints against hiring policies ruling out the unemployed have resulted in legislative action at the state level. New Jersey was the first state to pass a law prohibiting discrimination against the unemployed in 2011, according to data from the National Conference of State Legislatures. Oregon and Washington, D.C., passed laws in 2012 as did California, but the California law was vetoed. Altogether, 22 states have at least considered such measures in the last couple of years.

How tough is it on the unemployed?

Despite laws and EEOC hearings, employers still show signs of shunning unemployed applicants. A survey released in September showed that many of the recruiters surveyed said it’s easier for them to place someone with a criminal conviction (non-felony) in a new job than it is to place someone who has been unemployed for two years.

It’s not just long-term unemployment that dampens a job seeker’s chances, though, according to the survey from Bullhorn, a seller of online recruiting software. The survey of 1,500 recruiters and hiring managers showed that job hopping is the biggest obstacle for an unemployed candidate.

Someone with a history of leaving a company in less than a year struck 39 percent of the recruiters as the biggest disadvantage in landing a new job. Not far behind job hopping, though, was being unemployed for more than a year. Thirty-one percent of the recruiters considered that the biggest detriment to the job seeker.

Another study delves into how unemployed job seekers are perceived. Researchers from the University of California Los Angeles (UCLA) and State University of New York-Stony Brook found that out-of-work applicants are met with negative perceptions unrelated to their skill sets or to the reasons they’re unemployed.

“We were surprised to find that, all things being equal, unemployed applicants were viewed as less competent, warm, and hireable than employed individuals,” said lead researcher Geoffrey Ho, who was a doctoral student in human resources and organizational behavior at UCLA when the study was conducted in early 2011. “We were also surprised to see how little the terms of departure mattered. Job candidates who said they voluntarily left a position faced the same stigma as job candidates who said they had been laid off or terminated.”

What to watch out for

Although efforts to make unemployment a protected class have been unsuccessful on the federal level and in most states, employers still face some risk of unemployment being linked to an existing protected class. Therefore employers need to have policies that help them avoid EEOC scrutiny and help them find the best candidates.

Some tips to consider:

  • Make sure reasons for rejecting an unemployed candidate are job-related.
  • Be aware of perceptions that may paint a false picture. Just being aware of how the unemployed are perceived can lead to a more thoughtful consideration of someone’s qualifications.
  • Keep an eye out for more EEOC scrutiny. In its draft strategic plan for fiscal years 2012-2016, the EEOC mentioned economic factors among the external factors that may affect achievement of the plan. It noted that in difficult economic times, layoffs may increase and some employers “may begin enacting policies to save time or money that have an unlawful disparate impact on certain protected groups, e.g. bans on hiring currently or long-term unemployed workers, which may impact racial and ethnic groups with high unemployment.”
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3 COMMENTS

1 Leslie
11:30:02, 19/11/12

I am in the class of longterm unemployed. I have a bachelors degree, PHR certification earned while unemployed due to a reorganization 2 yrs ago and cannot find employment. I am a African American Woman and I cant get hired anywhere. I worked for my company for 7 years giving stellar performance and cant buy an interview. Im so tired of playing hopscotch with companies that discriminate for so many reasons. Gender, Age, Color and now my unemployed status. Just cant catch a break and no one cares to notice the problems!!!

2 Anissa
10:21:34, 20/11/12

When I’m looking at applicants, I’m looking to see if they have the skills that match what we need. Then, I’m looking to see if they have the attitude to fit within our company. Whether they are currently employed or not is not one of my criteria. In the past year, I’ve hired everyone from a 20 something to someone in their 70s as well as those employed at the time of hire and those who were unemployed at the time of hire.

That said, if someone has been unemployed for a significant amount of time, potential employers are going to want to know that this person has been doing something productive during that time and not just sitting back and waiting for life to happen. An employer wants to see initiative and ambition and not someone who has been happy to sit back and collect unemployment or someone who complains that life is unfair. More likely than not, it’s an applicants attitude that is holding him or her back more so than the fact that he or she is unemployed. It’s never professional to tell or show a recruiter that you are ‘desparate’ for a job – I’ve seem some include a letter from their spouse begging for the job so they can feed their children. Sell your skills and convince the recruiter that you have the skills that they need.

3 Rob Bird
16:46:59, 28/12/12

I would be interested to know the retention rate, when hired, for long term unemployed vs. employed. What I mean is, do long term unemployed have more loyalty (and therefore will stay longer) and the first place that hires them vs. someone who was working and got hired.

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