Job-Seeking in a Turbulent Economy: Social Networks and the Importance of Cross-Industry Ties to an Industry Change

Abstract

This study extends previous research on the micro-level processes of job-seeking and demonstrates that job-seeking behaviors are affected by macro-level factors. Using a longitudinal research design, we monitored the job-seeking strategies of a diverse sample of recently unemployed labor market participants. Specifically, we examined the impact of shrinking or growing industry sectors on the use of personal contacts. Overall, results indicated that growth or decline in employment levels of the job-seeker’s pre-displaced industry subsequently affected the likelihood of using cross-industry contacts during a job search. In addition, the use of cross-industry contacts significantly increased the likelihood of making an industry change. Limitations of the study and practical implications for conducting a job search in a contemporary environment are also discussed.