Benefits October 29, 2002

Job-Seeking Execs More Willing to Relocate

October 29, 2002 (PLANSPONSOR.com) - An increased willingness by some job-seeking executives to move to another part of the country for a job may speed up job searches, according to the latest study by an outplacement firm.

Reported by

Fred Schneyer

Challenger, Gray & Christmas said the number of jobless managers and executives relocating for new jobs jumped to 16% in the third quarter, up from 12% in the second quarter. The data is from Challenger’s latest Job Market Index.

According to Challenger, willingness to relocate had been on the decline beginning with the fourth quarter of 2001, which came on the heels of September 11. Relocation dropped steadily from 17.3% in the third quarter of 2001 to the 12% rate in the second quarter of this year.

Helping to propel more job seekers toward relocation is the fact that the job market is becoming increasingly competitive, which is prolonging the job search, CEO John Challenger said. At the same time, companies, in an effort to contain costs, are cutting back on the duration of severance.

According to Challenger¹s latest Index, it is taking jobless managers and executives 3.8 months to find new positions. The average length of severance is about 2.8 months.

Challenger also suggested that the rise in relocation is an indication that Americans are beginning to get over their skittishness brought about by the September 11 terrorist attacks.

The Challenger study involved 3,000 executives.