5 Stats to Know About the Labor Market for 2023
There are some key thing you need to do to be an effective hiring manager in today’s job market. It’s best to keep up with the relevant statistics regarding employment and unemployment. In addition to those job growth, earnings, and hiring best practices are also important. Today, we’ll share some of the very latest data from the Bureau of Labor Statistics, along with additional insights that will ensure you make the most informed hiring, interviewing, and onboarding decisions in 2023. Knowing the top five current labor market stats will only improve your ability to attract, hire, and retain the top talent professionals you need for your organization to grow.
The Top Five Stats in the Current Labor Market, 2023
The Bureau of Labor Statistics often shares insights and metrics that represent the current state of the labor market. But some of the most recent and interesting stats, as sought after by most of today’s business leaders, are these:
- The current labor force is growing at a rate of 0.5% annually. It is expected to continue at this pace over the next ten years. More precisely, the labor force grew to 161.2 million, an increase of 462,000, between 2020 and 2021. By 2031, the projections suggest the labor market will grow to 168.9 million.
- The aging population will contribute to a decline in labor force participation. Projections indicate a decline from 61.7% to 60.1% by 2031.
- Real gross domestic product, or GDP, is expected to continue to improve at a rate of 2.1% annually. This is slightly higher than the 1.8% rate in recent years.
- Healthcare-based and social assistance sectors are projected to create the most jobs through 2031. The biggest growth in employment is expected to be among the service sectors serving the aging population.
- One of the industry segments experiencing the fastest growth is leisure and hospitality. Rebounding from the economic impacts of the pandemic, these sectors, along with food consumption, accommodations, and public services, are expected to experience the most growth through 2031.
What Can Leaders Do with These Stats?
As a business leader or hiring manager, how can you take these latest labor market statistics and put them to use in your growth efforts? For starters, company leaders should recognize that the country’s experiencing its largest employment expansion ever. Coupled with record-low unemployment rates, these labor market conditions have made hiring ridiculously challenging.
But you probably already know that.
However, these latest stats point to continued growth. So, while many of these market dynamics were exacerbated by the pandemic rebound, it’s not expected to let up in the coming years. It means waiting for the market to “level out” or return to pre-pandemic conditions won’t be an option.
These five stats should also wave red flags to anyone running a business within the service sectors. Leisure, entertainment, hospitality, senior services, healthcare, and food services in particular. These particular markets are growing at higher rates. If your business model represents any of these services, employment is going to continue to be extremely competitive throughout the next eight to ten years.
Understanding these emerging trends and stats will help you strategize for improved applicant attraction methods and hiring best practices.
What Broader Trends Can Leaders Leverage?
Perhaps there is a bigger question for today’s business leaders. How can one capitalize on and leverage these labor market stats and trends? Here are some solutions worth considering as you look to improve how you attract, hire, and retain top talent in today’s employment landscape.
RippleMatch says many employers are relaxing their hiring requirements to broaden their talent pools. For example, opening positions up to potential candidates who don’t have college degrees or years of industry experience is proving successful.
Today’s hiring managers are seeking to improve their employee benefits and company culture initiatives at a much higher rate. The Great Resignation of 2021, where 47 million workers effectively quit their jobs, did so because of a growing need for flexibility and work-life balance.
A Different Approach to Hiring and Onboarding
What today’s current labor market trends really indicate is a need for a new playbook for company leaders looking to hire and retain top talent. Any business striving for growth will need the teams to execute those growth plans. And if you’re not changing the way you hire, you’re going to face hiring challenges ongoing for the next ten years.
Recognizing that you need a new approach might also mean you need a new hiring strategy partner. ExactHire fully embraces the emerging hiring trends and provides companies with the software solutions, hiring tools, and onboarding techniques needed for growth in this new labor market.
These top five labor market stats should inspire change and improvements within your company’s hiring practices. And ExactHire can be the partner you need to facilitate simplified applicant tracking and improved employee onboarding. Contact our team to talk about your challenges and growth goals for 2023!
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