There will be a tight supply of workers for years to come in key economic sectors. Without sustained immigration, an increase in labour productivity, or a focus on attracting workers on the sidelines of the labour force, many industrialised countries will continue to face challenges in the labour market.
Indeed and Glassdoor’s 2023 Hiring and Workplace Trends Report outlined five key labour market trends for the coming years. These are said to persist beyond the near-term fluctuations in the business cycle and likely withstand even a potential global recession. The five key trends include:
1 Tight labour supply
Demographic shifts and ageing populations mean workers will continue to have the leverage to demand change in the workplace. Hiring will remain challenging in some industries for several years, as labour supply issues persist.
2 Remote work is here to stay
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 suitable 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.
3 Pay benefits will set employers apart
The benefits employees prioritise are shifting, including compensation and perks, with inflation playing a key role. This accounts for all jobs, not just those that traditionally offer benefits. Between 2019 and 2022, the percentage of low-wage sectors offering paid time off as a benefit increased substantially from 17 per cent to 34 per cent. Access to mental health coverage is growing across economic sectors.
4 Happiness and well-being matter
Company culture has proven valuable in both attracting and retaining employees, and can be used as a strategy for employers to further distinguish themselves from their competitors.
A recent study from Indeed found that 46 per cent of people say their expectations around happiness at work have increased in the last year, and 86 per cent say how they feel at work impacts how they feel at home.
5 The changing workforce is pushing diversity, equity, and inclusion to the forefront
Diversity, equity, and inclusion (DEI) will remain top of mind as employees continue to care deeply about these initiatives. Nearly two-thirds of workers in a recent survey said they would consider turning down a job offer or leaving a company if they did not think that their manager supported DEI initiatives.