Job-seeking in a turbulent economy: Social networks and the importance of cross-industry ties to an industry change

This study extends previous research on the micro-level processes of job-se eking and demonstrates that job-seeking behaviors are affected by macro-lev el factors. Using a longitudinal research design, we monitored the job-seek ing strategies of a diverse sample of recently unemployed labor market part icipants, Specifically we examined the impact of shrinking or growing indus try sectors on the use of personal contacts. Overall, results indicated tha t growth or decline in employment levels of the job-seeker's pre-displaced industry subsequently affected the likelihood of using cross-industry conta cts during a job search. In addition, the use of cross-industry contacts si gnificantly increased the likelihood of making an industry change. Limitati ons of the study and practical implications for conducting a job search in a contemporary environment are also discussed.