Not finding work is a legitimate reason for not working to me. Even a little holiday is legitimate, it's not like we must all work to death. Trying writing or something else and not succeeding is a perfectly legitimate reason too, there's really a lot of possible reasons. I can understand that the market is overcrowded and you'd prioritise "hard working" people, but entirely dismissing a person because of a gap is, to put it midly, harsh.
A lot of those are legitimate, sure. If somebody gave an actual explanation on their cover letter or resume, there may not be any problem at all. I would certainly never penalize a candidate who took time off to try a different field and failed. The point is that they need to explain it. People who have work history gaps but give *explanations* are not penalized nearly to the extent that people who don't are.
You can also fire a person in hours, why would hiring be a particularly huge investment?
A new hire will take time, potentially up to 6 months, to get acclimated and fully operational. If you don't think somebody is going to stick around or be successful for at least that long, hiring them is a waste of money.
I agree that there are other considerations beyond skills and experience, but I still do not see how a gap would raise a lot of red flags. Employement history (what roles a person held and whether they were promoted) and references will tell a recruiter if an prospective employee has drive. Personality conflicts, while a consideration, should be low on the list of priorities, and sharing the value system of the company will also come out in the interview and from the resume and references.
In the US, few HR departments go through the effort for references, beyond simply confirming hire date, departure date, title and salary. There are some significant legal obligations and liabilities that a firm exposes themselves to if they ask other questions, so there is a big incentive not to do it.
Nobody is going to check references until much later in the interview process though, simply because it takes a long time to get any kind of useful information.
So what are those red flags that a gap in employment signifies?
This depends a lot on the industry and the type of position.
If the candidate has a particular skill that is hard to find (say, a background in a specific kind of engineer or exposure to a certain manufacturing environment), or has another major draw (say, a degree with a very prestigious university), but hasn't worked for 6 months, I'd have lots of questions. If that person was looking hard, they would surely have been invited to interviews, at least in the beginning of that process. Was this person's personality so poor that they rubbed multiple interviews the wrong way? Was this person being totally unrealistic about their salary or job description expectations? Is this person just a bad networker? Maybe this person really did just have some bad luck in the early going and then never got any calls back. That happens (it's unlikely), but it does happen.
If the person is less skilled, or lives in a smaller market, why hasn't this person tried to move, or tried to enhance their skills, or enrolled in school, or taken temporary assignments? After 6 months of failure, why hasn't this candidate tried to change up their job search strategy?
A lot of these questions can be answered in a cover letter, the resume objective, or the resume itself. A gap, with no explanation at all, raises a lot of questions.
The US is not one of those non-heartless state's though. In an environment where those retraining programs don't really exist, where not only is the social safety net pretty bare (relatively speaking) but a stigma, and where the overwhelming political priority is focusing on national debt (a strategy that constricts demand), isn't this hiring practice a big problem?
awkward sentence, don't feel like fixing it
If this is a highly prevalent practice in very basic and entry level job openings, then yes, I think it could be a problem. If it's more prevalent in higher level positions, it isn't ideal, but I don't think it's a catastrophe.
I do think that our labor market has a real problem with mismatched skill sets among workers, and less than ideal skills in marketing themselves, which makes things harder for everybody.