Does taking a more junior role jeapordise career prospects?

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OK I'm aware this is a bit of a 'it depends' situation but just sounding people out and writing it down helps me think things through.

I left my job at the end of last year and now the schools have re-opened am looking to get back in the workforce. I am not desperate for a job as have decent savings to outgoings ratio so don't want to rush into any random job. That said if I stay unemployed for too long, prospective employers might start to wonder why.

I had 3 interviews for a role that was marginally more senior (in terms of job title and money) than my old one, but was rejected on the final stage. This has led me to reflect on whether I should continue pursuing the 'next rung on the ladder' or be prepared to take a small drop. A position has come up that I would rate marginally more junior than my old one (in terms of responsibility and salary) that might be workable. New, growing company, potentially decent opportunities for progression if I fit in well. Could be a case of two years down the line I've carved out a good niche for myself, but I don't want to bank on that.

But the question then becomes if I were to take this job, and opportunities don't materialise, when I'm looking for my next move is there a risk that I've shot myself in the foot by taking a more junior role? I get the impression that the most recent role is the one people tend to focus on and I know as a hiring manager I've been occasionally sceptical of people who have seemingly taken or are considering a 'backwards' step (which they may have very valid reasons for, but are just not able to articulate). Essentially my fear is that having the wrong job on my CV could set me back five years (broadly speaking I would say the role would be roughly equivalent to what I was doing from 2014-2017).

Finally the other thing gnawing away at me a bit is I feel like if I'm going to take a more junior role then I should perhaps just be looking at the contract market given I'm immediately available. That way, I will earn good money and it's perhaps an easier sell for future interviews. Job security isn't all that important to me currently.
 
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He did it for 2 years and then wondered why he wasn't getting invited to any interviews for service management roles. I would be thinking, seeing a CV like that, that he obviously was as good as his last 2yrs work and wasn't a great service manager, otherwise why would he take a job for 2yrs at a much lower level?
Obviously you can explain these things in person, but you have to get to the interview first and I think it'd put people off.
Yeah this is my worry - and to address the posts above, it's not so much about about what I feel about it, if I consider tasks beneath me, whether I have old-fashioned views or not, but rather whether prospective employers might.

The issue I believe, is I look at some roles and think, would I be happy doing that for a couple of years? Yes I would. Would I be happy doing it without any significant evolution or expansion for 5+ years? Maybe not. So there's an element of risk there, trying to pick the right job where there might be opportunities to grow.

Regarding having a job being better than no job, again I think there's a potential opportunity cost there, whereby if I take a job then that will stunt my suitability for another job that might come up (as it will inevitably put people off if it looks like I'm switching jobs quickly). But of course there's the risk element about being out of work for too long and how that looks.
 
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Yeah, it gets discussed with recruiters. Job titles aren't particularly rigid but equally they are how people get categorised first and foremost. Ironically I am also interviewing for a role with a more 'senior title' than my previous one with seemingly smaller scale / responsibility. I am still sceptical of how much people truly look beyond job titles though, a lot of assumptions get made and you can be be met with surprise when you bring up experience people assume you wouldn't have had based on your job title.
 
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