WTF is going on in this labor market?
By Hebba Youssef
Are you also confused about what’s going on in the market?
You’re not alone!
I’ve been watching the layoff news closely and it seems like not a day goes by without another company announcing a reduction of employees.
On the flip side I see so many jobs posted and I hear directly from talent acquisition folks about how they’re struggling to fill roles.
So, wtf is going on?
What you need to know:
- Unemployment has dropped to 3.4%, the lowest since 1969!!
- There are 1.9 jobs available for every 1 unemployed person.
- BTW, there was an unexpected hiring surge in January
One industry has been hit harder than others: Tech.
Why? Because hyper growth has been glamorized and considered an indicator of success. But what we’ve learned is that fast growth hasn’t actually been aligned with real performance and revenue. Hence, the layoffs.
With the barrage of layoff news, you would assume the power is in the hands of the employers BUT the number of jobs available would indicate the scale has tipped to favor the job seekers.
Ah, confusion my old friend.
What is causing this? Offsetting the impact of the tech industry layoffs are booms in jobs in other sectors.
Industries where are jobs being added:
Spoiler alert: These are the industries that got hit the hardest when the pandemic started and this recovery will continue to contribute to the growth in open jobs.
Sooo it is a job seekers market if you work in an industry that is booming! However, if you work in Tech you may see a cool off period as companies regroup and have stricter budgets.
Not to mention: inflation and a potential recession has some employers contemplating a more conservative path to growth.
HR teams and job seekers will have unique struggles managing this market. But I have some tips that could help you out!
What recruiting teams can do:
The current market will impact each recruiting team differently but below are 3 things recruiting teams can do to ensure they’re prepared.
1. Improving your hiring process. Now is the time to look at your hiring process and ask yourself the question: is this working?
If your hiring process:
- Has several stages (5 or more)
- Takes over 2 weeks
- Lacks alignment with hiring managers
- Requires lengthy work products to be done
Maybe, it’s time to make adjustments!
Pro-tip: Consider at what stage you are consistently losing candidates and start there with adjustments.
2. Revisit your hiring plan. Hiring plans should be revisited on a regular basis. I actually look at our hiring plan on a weekly basis to ensure we’re focused on the right hires for what we are trying to achieve.
- What roles are priorities
- What roles you could do without
From there, always make sure your headcount plan matches your business priorities. If it’s not a priority, you maybe shouldn’t hire for it!
3. Know when to get external help. If you’re looking for guidance on how to hire in this current market, our team is here to help! I’ve worked with external agencies several times and know that they can be helpful when working on a particularly tricky search or when I don’t have a team that can work on the role.
Workweek Talent works with companies that are looking to hire! We alleviate the hassles of hiring by providing exceptional talent, fast. We act as your internal recruiting team, putting best practices in place to provide a smooth hiring process and a positive candidate experience.
Tips for job seekers:
I empathize with anyone who has recently lost their job. Layoffs can be a traumatic experience and can be quite difficult to process. Many job seekers are trying to make sense of this market so I thought to include a few tips to help!
#1: Take some time to process. I know this is easier said than done. Losing your job can be especially stressful if you are not financially stable. The average American does not have enough money in savings to take time off to relax. I still felt it necessary to include this as a tip because job searching or making a plan when you’re incredibly stressed or hurt is difficult. But do what works best for you.
#2: Tap your network. There are a lot of folks out there who are willing to help and could point you in the direction of opportunities. A Linkedin post, text to friends or emails to old mentors could be helpful in landing your next gig. Reaching out to previous recruiters could also be a great way to find out what roles are open!
#3: Be clear about what you want next. Brianna Doe shares great tips for job hunting and how to market yourself. She recently posted about questions to ask in an interview to understand company culture and they were FIRE.
#4: Join the Workweek Talent Collective. You can submit your resume to our talent collective and if we find an opportunity that aligns with your experience we will reach out! It’s a great way to get access to roles you might not otherwise!