With a tight labor market and economic uncertainty on the horizon, Glassdoor and Indeed just released the 2023 Hiring & Workplace Trends Report, an inaugural multi-country report that uncovers emerging labor market trends and insights into the future of work.
Most notably, the report finds that there will likely be a persistent tight supply of workers for years to come in key economic sectors. Without sustained immigration, an increase in labor productivity, or a focus on attracting workers on the sidelines of the labor force, many industrialized countries will continue to see a tight labor market.
This inaugural multi-country report outlines five key labor market trends for the coming years that will 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 Labor Supply will Continue to Impact Hiring. Demographic shifts and aging populations mean workers will continue to have leverage to demand change in the workplace. Hiring will remain challenging in some industries for several years, as labor 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: As Workers Seek Higher Pay, Benefits Can Set Employers Apart. The benefits employees prioritize 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 percent to 34 percent. Access to mental health coverage is growing across economic sectors.
#4: Happiness and Wellbeing 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 percent of people say their expectations around happiness at work have increased in the last year, and 86 percent 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.
“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 Aaron Terrazas, Glassdoor Chief Economist. “Rising to the challenges of tomorrow’s workplace requires a more anchored approach to understanding the full range of employees’ wants and needs.”
Aaron Terrazas
“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 Svenja Gudell, Indeed Chief Economist. “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.”