As 2022 began, employers were optimistic about the expanding workforce. Monster’s Future of Work Report shared that 93% of companies planned to hire in 2022, up 11% from the prior year. As offices reopened, supply chain bottlenecks dissipated, and hiring commenced.
Employment reached pre-2020 levels by July 2022, and the unemployment rate dropped to 3.5%. Despite people returning to work, however, their wallets (and careers) took a hit. We saw consumer prices rise 8.5% YoY, resulting in 80% of the US workforce reporting inflation was impacting their lives and their career decisions.
With a recession on peoples’ collective minds, we’ve compiled a forecast of labor market (and recruiting) trends to watch as we close out Q4 and look ahead to 2023.
The State of The Labor Market
- It’s Still a Candidate’s Market
Today, candidates have a myriad of employment suitors. Companies need to be prepared to tempt talent with generous compensation and benefits packages, as well as company culture and personal incentives.
- Upskilling/Reskilling Your Existing Workforce
If you’re not in a position to hire, consider grooming up your existing team. According to a recent survey, 72% of US employees said that they were likely or very likely to stay with their current employer should reskilling/upskilling be offered (Randstad 2022 Employer Brand Research).
- Surprisingly, People Still Want to Change Jobs
Even with recession fears, 40% of US workers said they plan on leaving their job in the coming months (McKinsey’s 2022 Great Attrition Survey). To combat this, ensure you are offering every available advantage to your current workforce, and check in with them periodically to gauge employee satisfaction.
“Even with recession fears, 40% of US workers said they plan on leaving their job in the coming months.”
Keeping Talent Happy
The workforce has made their disdain loud and clear. In 2022 unions formed at Amazon, Starbucks, and Apple to empower workers to ask collectively for higher pay, benefits, and better working conditions. Additionally, ‘quiet quitting’ has become the latest workforce trend—where employees put in the bare minimum effort in their place of work due to unmanageable workloads, unclear input from managers, lack of support, or unreasonable expectations.
Monster economist Giacomo Santangelo says, “Companies need to create opportunities for people to feel like they belong, where they feel [empowered to] do their best work and have clear opportunities for career progression.” Employers must prioritize employee mental health and find ways to address these issues. Gutz’s advice: “…create a culture of appreciation for work-life balance with solutions for people who are struggling.”
“Companies need to create opportunities for people to feel like they belong, where they feel [empowered to] do their best work and have clear opportunities for career progression.”
– Monster economist, Giacomo Santangelo
6 Job Market Industries to Watch in 2023
Given the current economic climate, here are the six industries we expect to boom in 2023:
- Professional/Business Services
A trend expected to continue well into 2023, the professional and business services sector is currently up almost one million workers above its pre-2020 levels.
With an aging Baby Boomer population and the loss of nurses who started new careers, the healthcare industry faces a serious nursing shortage.
Last year’s shortage of more than 80,000 drivers was an all-time high that could double by 2030. The American Trucking Association plans to recruit a million new drivers by 2032.
- Warehouse and Delivery
By early 2023, global e-commerce sales are expected to increase to $5.4 trillion (and $6 trillion in 2024) so demand for warehouse workers and delivery drivers should increase.
- Air Transportation
Airline staffing shortages are projected to last through 2023, as current data shows high demand for airline-related positions.
Jobs in the construction industry rose in 2022 with 82,000 more jobs than in February 2020, and this number is only expected to go up.
Conclusion: 2023 is going to be a roller coaster year due to economic/recession-related stress, labor market challenges, and general national unease. Stay tuned for ongoing resources from UpRecruit to help you stay informed and make proactive—and effective—hiring decisions.
About the Author
Vince Dorazio has 20+ years of experience in the recruiting and tech industry. He is currently the Founder & CEO of UpRecruit, a recruiting platform that intelligently matches tech talent to innovative companies. He has a passion for the start-up community and serves as a mentor, advisor, and board member to multiple SaaS companies and non-profits.