Overall the hiring market remains extremely strong with demand outweighing talent supply.
- Recruiting/HR teams are overwhelmed trying to fill open positions, and many roles are going unfilled.
- The most major challenge facing many companies is getting qualified candidates to the finish line.
- Candidates are receiving counteroffers from current employers, are simply rejecting offers, and are even “ghosting” prospective employers.
- A whopping 40% of candidates simply aren’t showing up on their first day, resulting in additional talent acquisition costs overall frustration.
The economic outlook for the second half of 2022 presents additional challenges to employers.
- Rising interest rates and inflation will cause companies to be less aggressive in their long-term hiring forecasts.
- In my opinion, the silver lining may be the potential balancing in the supply and demand of labor. With many projects currently in process or planned, there should be an increase in temporary job openings.
- During previous economic slowdown years, temporary hiring rose while and direct hiring slowed.
- Over the last six months, our company has seen a 43% rise in temporary staffing.
- Direct hiring also rose 60%.
- These increases reflect strong demand in our primary industries of aerospace & defense, alternative energy, telecommunications and software development.
- Unemployment is at 3.6%.
- Demand in jobs across all categories remained strong, with a total of 11.3 million open jobs.
- Temp help jobs increased by 5,400 in June 2022, a gain of 11.0% year-over-year, to 3.1 million
- The labor participation rate is 62.2%.
- 76% of global companies allowing hybrid work.
The Labor Department reported that nonfarm payroll employment increased by 372,000 jobs in June 2022, which was ahead of consensus estimate increases of 275,000 jobs. For the 2022 second quarter, there were 1.1 million nonfarm jobs added, averaging 375,000 per month, up 4.3% on a year-over-year basis.
The key categories of jobs created are as follows:
- Private Sector: +381000
- Total Non-Farm: +372,000
- Private Service Production: +333,000
- Education & Health Services: +96,000
- Leisure & Hospitality: +67,000
- Professional & Business Services: +40,000
- Manufacturing: +29,000
- Construction: +13,000
- Temp Help: +5,400
- Government Sector: – 9,000
As we head into the second half of the year, the struggle for talent will continue.
My advice to employers is to maximize your job offer and onboarding experience – get your candidates to the finish line and in your door. And then retain, retain, retain.
-Barry Vince, President