Is it Better to Work a Retail Job While Trying to Land Decent Job?
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There is no such thing as full time job searching. With the internet and all it's services, job hunting doesn't take much effort. It's not like the old days when you dressed up and hit the pavement visiting with employers in person and talking about your application.
I will never understand why people don't get that a gap on your resume is a huge red flag. You should either be working or volunteering. Not getting a paycheck is no reason to do nothing - period. It will often be held against you. Show that you are motivated and engaged by taking a part time job or volunteering for a cause.
Depends on your individual situation. If you are desperate for income, of course, take it. If you have ample funds, working <$10/hr retail isn't going to slow the bleeding that much if you previously had professional level employment. I certainly wouldn't let it interfere with trying to accommodate professional level interviews during core business hours.