Job market trends reveal current and future hiring prospects, influencing everything from salaries and wages to the number of job openings. These trends are driven by factors like economic growth, business needs and demand for goods and services, advances in technology (such as automation and the need for tech skills), workforce education and training, government policies, and more.
When interpreting job market trends, it’s important to keep in mind that the data can vary significantly by region and industry. This is because companies hire differently in different markets and regions, with local pay rates, available talent pools, and job needs often differing from national or even regional averages. To get the most out of job market trend data, it’s crucial to have granular job market data that reflects your specific hiring areas.
2024 Outlook
Job postings and employment have fallen since peaking in early 2021, but the decline has been surprisingly smooth. The so-called “Great Resignation” stopped, and layoffs have been low despite a drop in jobs created. Workers are quitting less frequently than before, but job-switching remains elevated by historical standards.
Some sectors are struggling more than others, however. Postings for roles in industries that require in-person work (like food service, retail, and healthcare) have declined the most. These sectors also have the highest labor leverage ratios, which measures the number of employee-initiated quits compared to employer layoffs. This suggests they may need to increase compensation and benefits packages to attract workers and retain them.