Job market supply vs. demand - who has the advantage today?

Remember this graph from an economics class when you were younger?  We all know about how it applies to the basic framework of our economy, but we don't always know how it translates into a job search.  Quite often I hear assumptions from both the candidate and employer side that are based on nothing but pure speculation.  That is a slippery slope for both parties, so I thought I would explore the idea for this week's blog topic.

During the worst stretches of the recession in 2009 and even into 2010 we saw a devastating combination of layoffs/re-organizations and very little interest in growth-oriented or newly created positions.  In other words, there was a lot of subtraction but very little addition.  This created a surplus on the candidate side and gave employers incredible leverage to wait for the "right" candidate.  The supply/demand curve was clearly in favor of the employers for quite some time.  It impacted the way that candidates interviewed and actually led to even more trepidation from employers as candidates were stretching the truth regarding their past experiences and current skill set just to get the job.

Fast forward to today and the curve is bending back in favor of the candidates, but it leads to a few cautions on both sides of the hiring equation.  Here are a few to consider:

Candidates 

Although the market is rebounding, I like to compare it to gas prices recently.  They seem to go up quickly without any explanation, but come back down to a "normal" level more slowly than we all would like to see.  Just because we are seeing more job openings and an increase in salary ranges, don't incorrectly assume that you can begin demanding a 20-25% increase in salary to make a job move.  You have to continue to look at all factors (company culture, employee benefits, career progression) to consider making the move.  This is especially important when in final stages of negotiating an offer.  Yes, you can ask a few questions and possibly seek a higher base salary or a few more days of PTO.  If the answer is "no" that does not mean the employer is not interested in hiring you or that you automatically need to decline.

Employers

Timing is the biggest obstacle we have seen lately on the client or employer side of the equation.  With the market rebounding we are experiencing candidates who have more than one interview going at the same time.  As much as we try to clearly communicate timing of a candidate's search, it remains difficult at times to encourage employers to move more quickly so that they don't lose out on the candidate.  It has happened several times this year already and employers are shocked when it happens to them.  When you meet a candidate that you really like, make a move and make it first.  That will help when it comes to final negotiation, as I outlined above that candidates are not just saying "yes" the minute the offer comes any longer.

The bottom line as the supply/demand curve continues to shift is that the improving economy benefits everyone.  The perfect spot where the two lines on the curve intersect will continue to shift, however, and we all have to be able to adjust to have ultimate success in the hiring process.

Where do you think the curve is at in today's market?  As always, I would be interested in your feedback!