The Hidden Job Market
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Presented by the National Connector Program, this blog aims to inform newcomers, employers, and networking enthusiasts about topics related to networking and the job search.
The Connector Program is a simple, effective, intentional-networking program. Our team works to support communities running the programs in communities across the country, create resources, and promote thought leadership around networking.
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Have you ever heard that “80% of jobs come from networking” or “the hidden job market accounts for 80% of jobs”?
We’ve heard many variations of this, too, and we were curious. If something is so pervasive, it must be true, right?
While this statistic grabs people’s attention, it actually comes from a very small 1966 study in Rochester, NY conducted by the National Industrial Conference Board.
We recommend that you read this entire well-researched article (part 1 and part 2) by Jesse Preston on the history of the 80% statistic. There are some very interesting tidbits about the development of the term “hidden job market” as well as some background to the 80% statistic.
Later in the article, Jesse Preston gives a great definition of the “hidden job market”. He says it is:
- Jobs/opportunities that are marketed or discovered through contacts, networks, or agencies, completely independent of formal company ads/postings
- Could include created jobs, but not advertised jobs, pending jobs, internal jobs, employee referrals, or jobs through 3rd parties such as employment service providers/recruiters/staffing firms/unions/schools/training programs/associations and the like.
The takeaway: In any given year, in any sector, market, locale, etc. there are many different hidden opportunities. These are employment opportunities that can only be gained by knowing someone or someone knowing of you.
Even if the statistic isn’t accurate, the hidden job market is certainly still at play.
This article also links to the CERIC National Business Survey which was completed in 2021, and has a Canadian lens. According to CERIC, businesses use the following channels for recruitment:
- 67% Employee Referrals
- 63% Offered training and advancement for entry to mid-level employees
- 59% Social Media Recruitment
- 52% Identified Internal Candidates
- 36% Used Community employment agencies
- 30% Hire from a co-op or internship program
- 24% Outsource to recruitment/search firms
The number of actual roles filled through these means will change based on many factors, such as the labour market, the economy, demographics, immigration, and more. Not to mention these factors will change based on locale, province, and if the company is hiring for a remote or on-site role. Past experiences of executives and HR professionals can also impact how they hire and who they hire.
So, don’t fall for overused statistics when reading about networking (or anything else). Take the time to consider what the stat means and where the information comes from. Networking can be intimidating enough as it is– you shouldn’t feel forced into doing it because you won’t find a job otherwise!
In our upcoming blog, we’ll delve into why networking is important. We’ll be discussing the hidden job market further, but we’ll also chat about the other important factors in building a strong network. Your professional life is not only about landing a job. It’s about carving your space while thriving and belonging in the sector you are passionate about.
What are your experiences with the “hidden job market”? Does this blog ring true for you? Let us know in the comments or share your story on our LinkedIn page! And until next time, happy networking!
