Last Friday, our buddies at the Labor Department threw us a curveball — 336,000 new jobs added in September. The Wall Street oracles? They had half that number scribbled on their prediction boards. But let’s not get high on the Kool-Aid just yet. A glance beneath the surface, and the job market’s less “roaring twenties” and more “depressing eighties”… at least for the desk-jockey crowd.
Get this: 70% — yes, SEVENTY percent — of those new gigs are in government, healthcare and the ‘come-see-and-chill’ sectors (that’s hospitality and leisure for the uninitiated). They’re just trying to get back to where they were before the world caught a nasty virus. Meanwhile, the captains of the industries — the architects, the marketers, the brainiac engineers, the managers? A paltry addition of 21,000 jobs. That’s less than HALF of what they added last September.
The bottom line? The headlines might shout progress — but the footnotes? They’re singing a different tune.
So, as we enter the last quarter of 2023 and look towards the horizon of 2024, what does this mean for recruiters?
Pivot, Don’t Stubbornly Stick.
Recruiting strategies that worked in the pre-pandemic world? Toss ’em out the window. We’re playing a new game now, and it’s called adapt or become irrelevant. Focus on those sectors exploding with growth – government, healthcare, hospitality and leisure. They’re hungry for talent, and if you’re not feeding that appetite, someone else will.
Value Beyond the Paycheck
If you’re trying to woo the white-collar folks, understand this: they’re looking for more than just a plush paycheck. In an era where burnout’s become a buzzword and WFH is the new normal, perks like flexibility, mental well-being support and continuous learning opportunities are our new golden handcuffs in this job market.
Up Your Digital Game
Remember those days when you could impress a candidate with a swanky office and a fancy coffee machine? Cute. Now, with remote work and digital nomadism on the rise, your online presence better be as polished as a Tesla’s dashboard. Invest in digital tools, spruce up that company LinkedIn page and for God’s sake, ensure your virtual interview experience isn’t reminiscent of a 2005 Skype call.
Look Beyond the Usual Suspects
The talent market’s tighter than a hipster’s jeans, so broaden your horizons. Gone are the days when Ivy League degrees were the only tickets to the top-tier jobs. Skills, resilience, adaptability – that’s the currency of the realm now. Cast a wider net, and you just might reel in the next unicorn.
Retention is the New Recruitment
Here’s the twist: instead of chasing the new, how about cherishing the old? With the job market in flux, holding onto your existing talent becomes paramount. Nurture them, value them, grow with them.
To sum it up, in the immortal words of Darwin (or as I like to imagine him saying over a mojito): it’s not the strongest or the smartest species that survives, but the one most responsive to change. So, recruiters, are you ready to evolve?
Is There Light At the End of the Tunnel For Recruiters?
Listen, here’s the thing: every tunnel, no matter how dark, twisty or filled with bats, eventually opens up to the light. And for recruiters? That beacon might just be closer than we think. Here’s why:
Historically, job markets have cycles — downturns, upswings, the whole shebang. Right now, we’re in a post-pandemic recalibration phase. It’s chaotic, sure, but it’s also temporary. By 2024, many of the kinks we’re seeing now will have been ironed out, or at least be better understood.
Where am I coming from?
Morgan Stanley Research strategists think U.S. corporate earnings could decline 16% in 2023 but stage a comeback in 2024 and 2025. Here’s what’s behind the forecast (in short):
The market’s getting ahead of itself, folks. Investors are banking on the Fed, listening to the big corporations singing tunes of a rosy second half and getting all giddy about the promise of AI. But let’s cut through the noise. Sure, a few players might make big waves with AI investments, but expecting this to shift the entire earnings trend? That’s wishful thinking, especially when many might just see their margins take a hit in the process.
Look at the data: for seven decades, we’ve seen earnings recessions bottom out after an average drop of 16%. That’s precisely what we’re predicting for 2023. And our dive into the historical trends? Doesn’t inspire much confidence for a sudden upswing in earnings.
Plus, the quality of earnings? It’s tanked. The ratio of net income to cash flow? Worst in a quarter-century. So, these high earnings during the pandemic — not gold, but more like glitter. They’re broad-based and cash flow’s expected to be weak.
Still, I’m an optimist too. By 2024, I expect the earnings scene to be sunnier. Their 23% growth estimate matches what history teaches us about the year after earnings hit rock bottom. Buckle up for the rebound.
What’s Next For Recruiters?
We’re living in an era of unparalleled innovation. Think about it: every challenge we face spawns new industries and job roles. Climate change? Say hello to green tech. Remote work? Enter the tools and platforms making it seamless. For recruiters, this means a whole new world of opportunities to explore.
It also means a Reskilling Revolution.
As job profiles evolve, there’s going to be a massive demand for reskilling and upskilling. And guess who’s going to be at the forefront of matching newly trained talent with the industries that need them?
But it’s an opportunity for us to upskill, too. That means leaning into the future. Take courses like the ones that Glen Cathey recently released, grab ahold of Mike Wolford’s recent book or brush up on Blair Fambro’s YouTube channel.
It means taking classes beyond automation, AI, chatbots — they’re fantastic, but there’s one thing they can’t replicate: genuine human connection. As the world gets more tech-heavy, the value of human-centric roles, including recruitment, will only surge. Algorithms can’t understand a candidate’s potential, drive and fit? That’s where recruiters shine. Don’t limit yourself. Take time to invest in all angles of your recruiting prowess. Hint-hint: I’m looking at you The Sourcing Institute.
So, to all the recruiters out there, chin up! The current job market might feel like navigating a maze blindfolded, but come 2024? Expect clearer skies and a roadmap that’s not just scribbles and question marks. Remember, after every winter, there’s a spring. And it’s looking promising for you.
As a Talent Acquisition Partner at McAfee, Brian Fink enjoys bringing people together to solve complex problems, build great products, and get things done. In his recent book, Talk Tech to Me, Fink takes on the stress and strain of complex technology concepts and simplifies them for the modern recruiter to help you find, engage, and partner with professionals.
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