Negotiating Power: Why Timing Is Everything

• Alex Iconomopoulos
• July 09, 2025
• Media Article

Ever feel like sometimes salary negotiations work—and other times, they fall flat? The state of the economy might be playing a bigger role than you think. From high unemployment to talent shortages, learn how economic shifts influence who holds the power in the hiring process—and how to time your ask for maximum impact.

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Ever wonder why negotiating a job offer can sometimes be successful and other times nearly impossible? This could be for many reasons, but one of them, is the health of the economy.

 

When Employers Have the Power:

When there is an economic downturn, characterized by slow growth, low investment levels and, low consumer confidence unemployment rates rise. With higher unemployment, more people are searching and applying for jobs.

In such a competitive environment, employers hold stronger negotiating power when it comes to discussing wages. In this case, employers can set wages at levels they prefer. With so many job seekers and few openings, candidates will be willing to accept lower wages just to secure employment. So, if someone wants a higher salary than the employer is willing to pay, they will just look for the next person who is willing to accept that wage.

 

When Job Seekers Have the Power:

When the economy is in expansion, a period of strong growth and investment with high levels of consumer confidence, unemployment rates decrease. With a lower unemployment rate, there are fewer applicants for jobs and therefore fewer candidates to choose from.

In this environment, employers face a smaller pool of talent, which gives qualified candidates more negotiating power when discussing their wages. If you are experienced and qualified for the role, this would be the time when the employer would be more likely to accept your request for a higher wage. This is because there are fewer people looking for jobs so if they need to hire someone, they may not have any other choice.

 

So, does this mean I should only negotiate my wage when the economy is healthy?

Not necessarily. While economic conditions can influence negotiating power, your skills and experience are still very important in determining wage. Still, being aware of the current economic state can help you make the right decision about when to ask.

 

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