Unemployment Rates and Ban-the-Box Initiatives Helped by Booming Economy

In recent years the United States economy has been booming and the unemployment rate has dropped significantly.  The result of this situation has turned into a shortage of available employees for open positions across the country.  While hiring qualified candidates for certain positions has become increasingly more difficult that does not mean that employers should become lax in their employment screening efforts.

The situation is so prevalent that the term “employee ghosting” has become a common term used when a potential employee gets an interview or even gets hired for a job and then never shows up for work.

Another factor is Ban-the-Box legislation that prevents employers in a certain jurisdiction, State etc. from asking a job applicant if they have a criminal background record.  It is clear that with a booming economy (leaving employers with smaller applicant pools) and not being able to ask about criminal history until an initial offer is made is helping people like ex-cons find gainful employment which may lead to a reduction in recidivism and give many US citizens the opportunity they need to live a productive and meaningful life.

For the last several years the economy in the United States has continued its expansion and, subsequently, the unemployment rate continues to drop.

The effects of low unemployment have been felt across the country.

In Colorado the labor shortage has had wide-ranging affects on business and business owners.

From the Coloradoan (Aug 11, 2018):

A decade ago, L&L Acoustical averaged about 60 jobs a month.

Today, the drywall company completes 35 to 40 jobs, not because the work is shriveling up — quite the opposite. There’s enough work to do 60 to 70 jobs in Fort Collins’ robust housing climate, co-owner Gery Lockman said.

While work is plentiful, the workers are not.  coloradoan.com/story/money/2018/08/11/colorado-labor-shortage-worsens-fort-collins-housing-woes/928718002/

Another phenomenon related to plentiful employment is something called “ghosting.”

From Jacksonville Florida’s NBC affiliate, News4Jax (Jul 26, 18):

You’ve probably heard of ghosting — where people go out on a date and never hear from that person again. Well, it’s something that’s become more common in the professional world.

People are landing an interview or a job and then turn into a no-show.

Business owners and staffing agencies say they are dealing with “employee ghosting” now more than ever before.  news4jax.com/news/employee-ghosting-spooking-business-owners

But what does it all mean in regards to employment background screening and Ban-the-Box?

With plentiful employment opportunities employers are scrambling to find enough employees to fill open positions.  In some cases employers are willing to take just about any qualified candidate, regardless of past, and are willing to review or change their employment criteria as it relates to pre-employment background screening.

From City-Journal.org (Aug 08, 18):

Progressives … have pushed for regulations such as “ban the box,” which would prohibit employers from asking about criminal history records on an initial job application. But it’s the economy, not federal mandates, that is forcing employers to give ex-offenders a second chance, so critical to reducing recidivism and helping them rebuild their lives.  city-journal.org/html/long-term-joblessness-16097.html

It is certainly the case that some employers have altered pre-employment background screening policies in order to fill open positions but employers should remain diligent in hiring policy.  A best practice remains to work with a well-qualified third party pre-employment background screening agency.

Ban-the-box efforts are not decreasing despite the robust economy.

Kansas Governor Jeff Colyer “Banned-the-box” via legislation that took effect in June 2018.

From a www.KansasCity.com opinion piece (May 15, 18):

With an executive order signed May 2, Kansas Gov. Jeff Colyer “banned the box” for people who apply for executive branch jobs with the state. Ban-the-box rulings forbid employers from asking a prospective employee about prior criminal conviction records on the initial job application. These laws are aimed at delaying the point in the hiring process when an employer can ask about criminal history. Proponents believe this practice helps balance the inequities convicted felons face when they attempt to re-enter the workforce.

Thirty-one states have passed similar laws. For private employers in Kansas City, ban the box takes effect June 9, following an ordinance the City Council passed in February.  kansascity.com/opinion/editorials/article211206864.html

Low unemployment is always a good thing, but employers should remain diligent in hiring practices.  Working with a background screening agency remains a best practice.  Even with smaller applicant pools and ban-the-box laws utilizing a professional employment screening company will help keep employers compliant while giving them the reports and information needed to make a sound decision regarding hiring someone.

To read more about why the USA’s booming economy is helping ban-the-box initiatives and helping unemployment rates read recent CriminalBackgroundRecords.com press release:  Booming Economy Helps “Ban-the-Box”