Overview of 2022:-
In the last edition, We spoke about the Supply and demand of talent. As we are ending the year, Here is the overview of the year 2022. Global talent shortages are at a 15-year high, and more than one in three US employers report difficulty filling jobs.
The US has been facing an extreme talent shortage crisis – a crisis that has made it difficult for staffing coordinators to source quality talent for clients. A crisis that might not be leaving soon. A crisis that will require staffing agencies to revamp their recruitment approach.
Utilizing these touchpoints just for the sake of filling the positions won’t be enough. Staffing managers will need to provide an uninterrupted staffing experience by optimizing the recruitment process for the channel that suits the talent perfectly.
Recessions lead to Layoffs
In Late 2022 Widespread hiring froze this was the primary sign that something went wrong. Cost reductions become a top priority for businesses when sales start to decline because they continuously monitor output.
Global digital companies including Twitter, Meta, Salesforce, byjus, and Snapchat are all cutting positions due to various challenges.
Over-hiring during the Pandemic
Companies across the world, including in the US, have gone on a hiring spree thinking the demand would last forever, and then end up taking the hard decision of layoff. Staffing redundancy, though taken up as a contingent plan, may eventually become the reason why cash outflow may go higher than the inflow based on the market conditions.
Unstable economy
The new normal that everybody was speculating about is now upon us, but with another unexpected crisis of the Ukraine-Russia war. All these reasons have led to inflation and lesser investment budgets. America’s inflation rate—now at a 40-year-high—will remain high well into early 2023. Since labor comprises as much as 70% of total US business costs, sustained consumer price inflation typically requires sustained wage inflation.
Prediction 2023
What a year 2022 has been so far. From the Great Resignation to resources ghosting, the dominant themes were record job opportunities, acute talent shortages, and candidates having the upper hand. But as the year draws to a close, the great hiring boom appears to be over as fears of a recession in the last quarter. So, what’s in store for 2023? Let’s look at the new predictions & what lies beyond.
Great Rebalance
Great rebalancing. Global economic dominance will shift away from the US and towards developing nations, and the digital economy will continue to grow. According to Morel, these three fundamental factors will result in a “Great Rebalance” that will redefine the world’s economic landscape. He also emphasizes the necessity for governments and companies to have long-term plans and the possibility of heightened volatility.
Hybrid under threat and Re-Open Communication
It is also likely that workers who have gotten used to making demands of employers and having those demands met will lose their bargaining power. The market has changed, and employees won’t want to risk rocking the boat. Whatever happens with hybrids, the office will continue to play an important role – if only we let it. Once revered as the place for people to collaborate and communicate openly before the pandemic ever happened.
More AI Technology
Although marketers will always exist… I hope… In the field of hiring, AI will keep gaining momentum. The iconic “ATS bot” legend and folklore might unexpectedly come to pass. However there are a number of areas in which such solutions cannot provide the same outcomes as a human recruiter, for easier and larger volume purchase requisition, AI will undoubtedly be a more significant participant in the hiring sector. These tools won’t completely replace recruiter, but they will be the more prevalent tool.
Fewer Layoffs
Could it be true? Call it to hope, but I’m keeping my fingers crossed that the pattern of large layoffs will start to wane by the second quarter of 2023. It’s really no surprise that The it businesses had significant hypergrowth during the epidemic before even being completely wiped out in 2022. Even if some firms have reduced their workforces, this trend is projected to continue through the first half of 2023 before slowing by the summer of that year. Would the trend toward rapid growth eventually reverse? Probably not. But will employment increase? … Only time can tell.