What to expect from the hiring market in 2023
The hiring landscape over the past two years has been a whirlwind, to say the least. While no one truly knows what to expect with so much uncertainty, we are getting a sense of what’s happening in the market today from our clients and candidates, and what we are expecting to see from the hiring market in 2023.
Overall, the word cautious comes to mind. What’s driving that is this continued uncharted times. The future is unknown for so many, and companies are using that as an opportunity to slow down a bit.
Although there seems to be some consistent sentiment that the U.S. is driving toward a recession, the labor market continues to remain pretty strong. We saw layoffs in the news, but unemployment is still around 3.7%, which is pretty significant. This shows us there’s a lot of pickup with people being let go.
Here are a few things we’re predicting for 2023:
- Companies will stop to pause and reflect a little bit more than they have in the past as it relates to their hiring plans.
- In the last few years, leaders were going, going, going, and not thinking much about it. This year, we’ll see everyone slow down a bit. Leaders are just trying to catch their breath.
- Companies are going to be looking for opportunities to get more done with less. They may even look to try something new that is cheaper, better, or faster, as long as the risk is small and it has a similar reward.
- Everyone will be dealing with a lower supply of talent. This is a theme that we saw all last year and will continue in 2023.
- Leaders and employees alike are settling into the idea of a hybrid office. We won’t see much change here this year. Employees are getting more accustomed to coming into the office, and this year, we’ll see companies figure out how to handle culture both remotely and in person.
Looking ahead to this year, we are expecting some continuation of themes as the latter part of last year. We typically see a spike in January when it comes to hiring as companies start to get things rolling, but that will likely stabilize as we continue into the year. Now more than ever, hiring leaders worth following will be essential to successfully navigating your organization’s future.