Amid a tight labor market and economic uncertainty, there will likely be a tight supply of workers for years to come in key economic sectors, according to the 2023 Hiring & Workplace Trends Report, released jointly by Glassdoor and Indeed today.
“The past two years have pushed people leaders to the forefront of their organizations as executive teams around the world grapple with how to motivate and retain teams in a quickly changing and increasingly volatile world of work,” said Glassdoor Chief Economist Aaron Terrazas.
“Rising to the challenges of tomorrow’s workplace requires a more anchored approach to understanding the full range of employees’ wants and needs.”
The multi-country report highlights the following five key labor market trends for the coming years that will persist beyond the near-term fluctuations in the business cycle:
- Workers will continue to have leverage at workplaces due to demographic shifts and aging populations. As labor supply issues persist, hiring will remain challenging in some industries for several years.
- Remote work will continue to thrive in occupations where it is an option. This trend will also impact the estimated two-thirds of occupations not meant for remote work, as employers trying to fill in-person jobs struggle to attract workers who may gravitate toward work that lets them stay home.
- The prioritization of employee benefits is changing for all jobs, including compensation and perks, with inflation playing a key role. Between 2019 and 2022, the percentage of low-wage sectors offering paid time off as a benefit increased to 34% from 17%. Additionally, access to mental health coverage is growing across economic sectors.
- Company culture has proven valuable in attracting and retaining employees and can be a strategy for employers to distinguish themselves from their competitors.
- Diversity, equity and inclusion will remain a priority as employees continue to care deeply about these initiatives.
“Covid deeply impacted the way we work. What is critical for leaders to understand is that these changes and shifts are not temporary. There will be no return to ‘normal’ that many seem to be awaiting,” said Indeed Chief Economist Svenja Gudell.
“The five trends we have identified explore the labor market of tomorrow, and what a new normal will look like. These trends are driven by hard data — both within our organizations and beyond. Together, they paint a clear picture: Looking past any near-term business cycle shifts, hiring will remain challenging for years to come driven by demographics and evolving preferences.”
Source: Staffing Industry Analysts