ZipRecruiter: Record number of new jobs, fewer workers seeking jobs

By Devika Patel

Knoxville, Tenn., March 2 – ZipRecruiter, Inc. saw strong results in 2021, with record-breaking numbers of new jobs, but the labor markets have also seen fewer employees applying for those jobs, resulting in a shift in how employers recruit new talent.

“I’d like to highlight the unique macroeconomic backdrop against which ZipRecruiter delivered these phenomenal results,” chief executive officer Ian Siegel said on the company’s fourth quarter and year ended Dec. 31, 2021 earnings conference call on Tuesday.

“Twenty-twenty-one was a record-breaking year for the U.S. labor market.

“The U.S. economy added almost 6.7 million net new jobs, the highest single year total on record.

“We also saw the highest number of job openings.

“American employers’ appetite for labor grew, as the U.S. economy continued its recovery from the severe impact of the pandemic,” Siegel said.

The year also presented challenges, resulting in fewer active labor force participants and employers have had to increase wages and benefits and allow for more flexible schedules.

“Twenty-twenty-one will also be remembered as the year of The Great Resignation and severe labor shortages,” Siegel said.

“A record number of workers quit their jobs, while many potential job seekers remained reluctant to return to the job market for a variety of reasons.

“These two macroeconomic themes resulted in a stunning low of only 0.6 million active labor force participants for every job opening,” Siegel said.

“In response, employers rolled out the red carpet to attract workers, raising wages, increasing benefits and adding flexible schedules.

“We’re now seeing wage growth pick up across all industries,” Siegel said.

The Great Resignation has reshaped the recruiting process.

“The shortage of available talent compels employers across all sectors of the economy to use novel approaches to stand out,” Siegel said.

“We believe we are moving the industry away from an era in which job seekers shoulder the burden of searching for a job, towards a new era in which employers take the initiative and go first,” Siegel said.

The company conducted a bond sale in January.

“On Jan. 12, 2022, we completed a private offering of $550 million in aggregate principal amount of our 5% senior notes, due in 2030,” chief financial officer Tim Yarbrough said on the call.

“We intend to use the net proceeds from the offering for general corporate purposes, which may include capital expenditures, investments and working capital.

“These proceeds, combined with our $255 million cash balance as of Dec. 31, 2021, bolster our cash position as we begin 2022,” Yarbrough said.

On Jan. 7, ZipRecruiter made its debut in the high-yield market pricing an upsized $550 million issue of senior notes (B2/BB-/BB-) due Jan. 15, 2030 at par to yield 5%. The notes settled on Jan. 12.

The issue size increased from $500 million.

The yield printed at the tight end of the 5% to 5¼% yield talk. Initial guidance was in the low 5% area.

J.P. Morgan Securities LLC led a syndicate of bookrunners that also included Goldman Sachs & Co. LLC, Wells Fargo Securities LLC, Citigroup Global Markets Inc. and KeyBanc Capital Markets Inc.

The Santa Monica, Calif.-based online employment services provider earmarked the proceeds for general corporate purposes, including capital expenditures, investments and working capital. The additional proceeds resulting from the $50 million upsize of the deal were set aside for general corporate purposes.

© 2015 Prospect News.
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