Week 6: Understanding the job market within your sector
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Week 6: Understanding the job market within your sector
Introduction
Last week you explored the ways in which you can use networking to find out more about your sector. You identified your current networks, investigated how to make your networking more effective and gained some practical tips for doing this face to face. Finally, you considered online networking and the professional platform provided by LinkedIn, and how to manage your online profile on social media more generally.
This week you will be looking more closely at different types of job market and how they work. Having this understanding is crucial to navigating through the different ways in which employers advertise vacancies and recruit staff. It adds detail to the larger perspective that you have started to develop through your work in previous weeks.
Watch Lynne Johnson as she introduces Week 6.
Transcript
As with previous weeks, you’ll need your notebook or the Toolkit to jot down your thoughts and responses to the activities.
By the end of this week, you will be able to:
- describe the distinctive types of employer, differentiating them by size and characteristics
- identify the advantages and disadvantages of these employers from your personal perspective
- outline the main sources of job vacancies and how these are used by different types of employer
- explain what is meant by the hidden job market and speculative applications, and the pros and cons of the latter
- describe common features of self-employment and evaluate whether it is an option that might appeal to you.
1 Different types of employer
Employers come in many shapes and sizes; that much is fairly obvious. We all probably know someone who runs a one-person business locally – a shop or a trade perhaps. Most of us have used such people for various reasons: buying a newspaper, fixing the plumbing, doing some rewiring or even walking the dog!
At the other extreme are huge corporations such as Walmart, Volkswagen, and Amazon, which employ millions of people between them across the world (Statista, 2020). It would be surprising if these organisations used the same recruitment methods as a small local plumber. In between these extremes there are many different types of employer, so how do you begin to try to understand this range?
One way, which you have begun to explore already, is by size. Businesses with fewer than 250 employees are commonly referred to as small and medium enterprises (SMEs), while those with fewer than 10 employees are known as microbusinesses. Businesses with more than 250 employees are defined as large.
Activity 1 Different types of employer
Spend just five minutes thinking about the range of employers you know about. Try to think of three examples for each category in Table 1.
| Microbusinesses (fewer than 10 employees) | SMEs (10–249 employees) | Large businesses (more than 250 employees) |
|---|---|---|
Comment
This activity might seem quite straightforward to begin with, as most of us would have little difficulty thinking of examples in the first column (from local knowledge and experience) and the last column (from knowledge of the world around us). However, the middle column probably presents more of a challenge.
Interestingly, it is precisely this middle column that accounts for the majority of employers in the UK and for most employment opportunities. The Federation of Small Businesses reported recently that 99.3 per cent of all UK private sector businesses at the start of 2020 were small businesses and that employment in SMEs represented about 60 per cent of all private sector employment in the UK. These employers operate across many industries and services (Federation of Small Businesses, 2021).
Size is not the only way in which different types of employer can be distinguished, however. They can also be looked at in terms of how they are structured, and their broad remit and responsibilities. In this way, it is possible to divide them into the following categories:
- public sector
- private sector
- third sector or not-for-profit.
Activity 2 asks you to think about the differences between these categories in more detail.
Activity 2 Public, private and third sectors
Table 2 includes an example from each of the three categories. Try to complete the final box, indicating what you think distinguishes this organisation in terms of its category.
| Category | Example | What distinguishes it? |
|---|---|---|
| Public sector | NHS | |
| Private sector | Tesco | |
| Third sector | Oxfam |
Comment
| Category | Example | What distinguishes it? |
|---|---|---|
| Public sector | NHS | Funded through public finances |
| Private sector | Tesco | Controlled privately by shareholders |
| Third sector | Oxfam | Relies on volunteers and is responsible to trustees |
You might have put something slightly different in the final box, but the essential differences between the categories are as follows:
- public sector – financed from the public purse and accountable to central or local government
- private sector – largely financed privately, run for profit and accountable to share holders
- third sector – run to help the community and not for profit, often relying on volunteers and sometimes has charitable status.
The two ways in which employers are categorised, by size and by sector, cut across each other. Each category in Table 3 – public, private and third sector – contains examples that are both very large and very small. The NHS, for example, is one of the biggest employers in the world, employing around 1.2 million people according to (NHS Digital, 2021). This is more than the combined workforces of Volkswagen and Tesco!
Some private sector employers, however, are very small and employ few people. Third sector organisations can be modest in size, too (for example a small charity serving a particular local community), or large and worldwide – think of Oxfam, which has over 7,500 employees across the globe (Oxfam, 2021).
Having distinguished between organisations by their size, structure and remit, you will now move on to thinking about how these differences can help to characterise organisations, and how this might affect you.
2 Identifying which employer is right for you
Clearly the different types of organisation that have been identified so far have different characteristics and operate in different ways. Understanding how big companies are different from SMEs, or how the private sector is different from the public sector, can be useful in helping you to think through where your own career goals might lie.
Characterising organisations in this way must be accompanied by a note of caution, however. Just because two organisations are both private sector does not mean that their values and way of operating will necessarily be the same. In the same way, two third sector organisations can be very different in their cultures and practices. Nevertheless, it is possible to draw out some distinctions as follows.
Public sector
The public sector includes the civil service, the NHS, the armed and emergency services plus the majority of education, community and social services, and the BBC. More locally, it includes councils responsible for public housing, waste management, libraries, roads and traffic, planning, environmental health and consumer protection, and the arts and leisure. Not surprisingly, the culture tends to reflect the aim of providing services to the public and meeting national and local needs.
Private sector
This consists of a variety of businesses and services across all areas of the economy that are generally run for profit. It ranges from sole traders through partnerships and small companies to large multinational corporations. Private sector organisations compete with other businesses to sell goods and services in order to generate profit, both for reinvestment and to provide a return to the owners or shareholders.
Third sector
This is a growing area of the UK economy comprising non-governmental and non-profit-making organisations, including charities, voluntary and community groups, and cooperatives, mutuals and social enterprises These often operate in areas of social and health care, education and community justice. Their culture is similar to that of the public sector but, crucially, they are not funded from public money through taxes but rely on selling goods and services.
Activity 3 Advantages and disadvantages of different sectors
The following links will take you to resources which explore differences between working in different sectors of the economy:
- Private or public sector: which sector suits you best? (Social Hire, 2021)
- Why you should work in the charity sector (The Guardian, 2019)
Bearing in mind the descriptions given above, identify what you think might be the advantages and disadvantages for you personally of working in each sector.
| Category | Advantages | Disadvantages |
|---|---|---|
| Public sector | ||
| Private sector | ||
| Third sector |
Do you feel particularly drawn to one area rather than another and, if so, why? Think about this for a minute or two and make some notes in your notebook or the Toolkit to reflect your thoughts.
Comment
This is obviously a very personal judgement and your responses will vary according to your personality, your interests and your outlook on life. The following table indicates some commonly held ideas about the differences between working in the public, private and third sectors; how you feel about them will be completely up to you.
| Category | Advantages | Disadvantages |
|---|---|---|
| Public sector |
|
|
| Private sector |
|
|
| Third sector |
|
|
Thinking through how you might feel working in each of the sectors will give you a better understanding of your preferences and will help you to decide which areas to focus on when researching different fields of employment.
In addition to the differences that have been identified in the broad characteristics of different types of organisation, there are also differences in the way in which they recruit employees. The next section will help you to understand how organisations in different sectors go about getting the staff they need.
3 Where are jobs advertised?
There are many ways in which jobs are advertised nowadays, and it can be confusing for the job seeker to navigate their way around them. Much will depend on the sector in which you are seeking work and the type of employer you are targeting. For example, a local electrical company will advertise their vacancies in a different way from a national financial services organisation, and a large charity will adopt different methods of recruitment from a public body such as the NHS.
Activity 4 Identifying where jobs are advertised
Think of as many avenues as possible through which employers advertise vacancies. How many can you come up with? Start by thinking about how you found out about your last job, or jobs that you have recently applied for. Write these down in either your notebook or the Toolkit.
Comment
The following list is fairly comprehensive. You may have thought of more – if so, well done!
| where jobs are | where jobs are |
|---|---|
|
|
It takes some time to work out which are the best sources for your field of interest, but it is well worth your while spending this time. For example, would you look at The Times newspaper – either the paper itself or the online version – every day in case there are any local vacancies for teaching assistants? This is unlikely – you would need to look in other places, probably more locally.
If you can concentrate your efforts on the most appropriate sources, then you are more likely to come across the vacancies that will interest you, and you won’t waste time in fruitless searches of less rewarding avenues. In turn, this will increase your motivation and improve your chances of impressing employers.
Activity 5 Different sources for different types of job
Look at the five jobs listed below. Think about the results of Activity 4 and use your judgement to work out where you might find vacancies for each job. The first example has been done to guide you.
| Job | Potential vacancy sources |
|---|---|
| Retail assistant (large supermarket) |
|
| Electrician (local electrical business) | |
| IT technician (large hospital) | |
| Accountant (national company) | |
| Sales manager (regional car parts company) |
Comment
You will probably have come up with a list similar to the one in Table 7, perhaps with some slight variations.
| Job | Potential vacancy sources |
|---|---|
| Retail assistant |
|
| Electrician |
|
| IT technician |
|
| Accountant |
|
| Sales manager |
|
There is no precise correct answer for each case, and much will depend on other factors such as the local job market, the health of the particular sector or the wider economy, the particular requirements of the job and so on. For example if an employer sees that there is, for some reason, a shortage of skilled electricians in the local area then they are likely to look further afield for staff, perhaps using a recruitment agency rather than just the local newspaper.
A good starting point for researching common sources of job advertisements is the OU Careers and Employability Services.
You have now looked at common sources of job vacancies and how these relate to different types of job. In Section 4 you will look at speculative applications and the hidden job market.
4 Are all jobs advertised?
Think about all the jobs that are advertised every day of the week in different ways in the UK. What proportion of all job vacancies does this represent – 90 per cent, perhaps, or maybe 80 per cent?
Many job vacancies are never advertised. This is often called the ‘hidden job market’, and means that the job advertisements that you see in the newspapers or Jobcentre are merely the tip of the iceberg.
There are various reasons why this is the case, but perhaps the most common, as you discovered earlier, is that the UK employment market is dominated by SMEs. Many of these companies would not be able to afford to commission agencies for expensive advertising campaigns, nor will they have dedicated HR departments tasked with staff recruitment. Instead, they will use word of mouth to publicise the fact that they are looking for employees, or rely on interested applicants contacting them directly. This method, while having some disadvantages, also keeps the number of applications manageable and thus reduces administration. In times of recession or economic difficulty, arguments in favour of this approach are persuasive.
In these circumstances, what is the most sensible way to find out about and apply for job vacancies? If you apply only for those vacancies that you see advertised, you are probably already fishing in a crowded pool with lots of competition. The answer is to think about the potential benefits of making speculative applications, i.e. not waiting to see a vacancy advertised by a specific employer but contacting them to market yourself. The intended outcome is that they will be impressed enough by your motivation to consider you for a vacancy that might come up in the future, or even that they will create a vacancy for you. The following case study illustrates what could follow from a speculative job enquiry.
Case study: Ruth
Ruth is a project manager who has worked for a financial services organisation for seven years and feels she needs a change. She has been applying for advertised jobs without success for about six months.
Last week Ruth spotted an article in the local newspaper about new businesses coming to a local business park. These included an insurance company, so she looked up their website and found out about them and how they operated. She sent them an email introducing herself, outlining her experience and enquiring about opportunities.
Impressed by Ruth’s initiative in contacting them, the insurance company invited her to their head office for an informal discussion, and subsequently offered her a formal interview for a project manager post at their new premises.
Activity 6 Job advertisements vs speculative applications
Part 1
Think about the two scenarios that have been outlined:
- replying to an advertised vacancy (on the internet, for example, or through an agency)
- making a speculative application to a company.
For the latter, think also about the example featuring Ruth, and the way in which she proactively made contact with the company moving into her local area.
Use Table 8 to organise your thoughts on what you see as the pros and cons of these two approaches to applying for a job.
| Responding to a job advertisement | Speculative application | |
|---|---|---|
| Pros | ||
| Cons |
Comment
You may have identified some of the pros and cons listed in Table 9. You can see from this example that there are advantages and disadvantages to each approach, but remember that you don’t have to choose between them; you can use both in different circumstances.
| Responding to a job advertisement | Speculative application | |
|---|---|---|
| Pros |
|
|
| Cons |
|
|
Part 2
Reflect on how you have applied for jobs in the past – what has been successful? Have you tried a speculative approach – if so, what happened?
Record in your notebook or the Toolkit whether or not you feel that making speculative applications would be appropriate for you and the area in which you are seeking work.
As you have discovered, the job market can vary between sectors and even employers, and it is not always the case that a particular job vacancy will be advertised. Making a speculative application can, therefore, be a very powerful method of presenting yourself to an employer and convincing them that you are a credible candidate.
You need to go about this in the right way, however, and be clear about what you are trying to achieve. You will need to do your homework first so that you know something about the employer. You need to be able to demonstrate that you have the skills and experience they might need and that you have thought about how you might fit into their organisation. This is usually more challenging than responding to an advertised vacancy.
This article from the OU Careers and Employability website provides is a helpful introduction to making speculative applications.
5 Self-employment
So far, you have been considering the job market in terms of getting a paid job with an employer – but there are alternatives. One of the most important of these is self-employment. After a period of growth over a number of years, the number of solo self-employed in the UK (excluding those who have others working for them) fell by five per cent from 4.6 million in 2019 to 4.4 million in 2020, with impact felt from the panademic and Brexit amongst other factors (IPSE, 2020). As of June 2021, there are approximately 4.2 million self-employed workers in the United Kingdom.
The option of self-employment appeals to many people, despite some evidence that people can be pushed into self-employment by circumstance rather than choice, resulting in low pay and limited training. For parents seeking more flexible work regimes or older workers looking to top up their pensions, however, working independently can provide an easier route into the labour market than traditional employment. Whether this is the case for you will depend on factors such as your personality type and the business or area in which you are, or are aiming to be, involved.
If you prefer the security of an employer who will pay you a regular income, organise your work schedule and take care of HR issues, such as pensions, tax, sickness and holidays, then you might struggle having to look after these areas for yourself. If, however, you are self-motivated and like to take control of your working day, enjoy organising your time and are happy with the administration involved in dealing with HMRC and other government bodies, then you might decide that self-employment is an option to consider. It is worth thinking through the advantages and disadvantages of self-employment from your personal perspective.
Certain business areas or industries are more likely to have self-employment opportunities than others, so you need to carefully research the potential within your chosen field. Many traditional skilled trades – for example electricians, plumbers and hairdressers – are characterised by self-employment, as are some artistic and creative fields such as interior and graphic design.
With the widespread use of communications technology, such as the internet and social media, there are growing opportunities for people to work from home across a wide range of sectors at the times that most suit them rather than being tied to a particular employer.
Activity 7 The pros and cons of self-employment
Think about the pros and cons of self-employment in the context of your own situation. Go to the Self-employment questionnaire tool in the Toolkit, read the statements listed there, all of which might apply to self-employment, and select the numbers that are closest to how you feel. Then read the comment below.
Comment
These factors will almost certainly be part of your life as a self-employed person, so you need to be comfortable with them. If the majority of your responses are above seven or eight, then you might seriously consider self-employment, other things being equal. Too many responses at the other end of the scale, below five for example, and there would seem to be some doubt about your ability to manage or enjoy the challenge. Of course, you may answer differently in several years’ time, in changed circumstances, so self-employment may be an option you reconsider in the future.
Self-employment in the UK is increasing as a way of earning your living and for many people has considerable advantages, including flexibility and autonomy. It is an area that you might not have considered before and could be worth investigating. It is not appropriate for everyone, however, and should be considered alongside other, more traditional, employment options.
6 This week’s quiz
Well done – you have reached the end of Week 6 and can now take the weekly quiz to test your understanding.
Open the quiz in a new tab or window (by holding ctrl [or cmd on a Mac] when you click the link).
7 Summary
This week you have considered how the job market operates in different ways in different sectors. In particular, you have thought about employers in terms of their various sizes, but also in terms of their structure and remit. In the light of these distinctions, you have considered which you feel most drawn to and why. These differences have implications for the ways in which employers advertise their vacancies, and you have started to think about the various methods employers use and to apply this to your own situation. With this in mind, you have been introduced to the concepts of the hidden job market and the speculative application. Finally, you have looked at self-employment as an option and evaluated whether you feel this is appropriate for you at the moment.
You should now feel that you can:
- describe the distinctive types of employer, differentiated by size and characteristics
- identify the advantages and disadvantages of these employers from your personal perspective
- outline the main sources of job vacancies and how these are used by different types of employer
- explain what is meant by the hidden job market and speculative applications, and the pros and cons of the latter
- describe common features of self-employment and evaluate whether it is an option that might appeal to you.
Next week you will be asked to think through the knowledge and understanding that you have so far gained, and to reflect on how this information can be used in different ways depending on your circumstances and aspirations.
You can now go to Week 7.
References
Acknowledgements
This free course was written by Martin Pennington.
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