#2: Many laid off workers
plan to switch industries
A recent survey from Fiverr found workers who were recently laid off are ready to switch up their next career move. With flexibility and expenses top of mind, 33% of respondents said they plan to freelance while looking for a new job, and more than a third plan to keep a side hustle once they return to work full-time. For laid off workers, severance packages are often not enough to cover expenses.
#1: Employers need to address mental health
May is Mental Health Awareness Month, a time to reduce the stigma around mental health disorders and raise awareness of the challenges people face every day. In the workplace, poor mental health can significantly impact work performance and attendance. According to a recent report from Gallup, 19% of workers say they have fair or poor mental health and take four times more unplanned absences than those with good, very good, or excellent mental health.
3.4%
The U.S. economy added 253,000 jobs in April and the unemployment rate slightly decreased to 3.4%, according to the Bureau of Labor Statistics (BLS). These measurements have had little movement since early 2022.
The labor force participation rate and average weekly hours worked remained unchanged from March at 62.6% and 34.4 respectively.
While the labor market has remained strong, showing solid job growth for the past 28 months, economists foresee the start of a cooling market as overall job openings fell to 9.6 million in March, the lowest number in nearly two years.
National
Unemployment Rate
In a recent report released by workplace analytics platform Syndio, companies have fueled pay gaps by paying new hires more than existing employees in high paying jobs with an average salary of $125,000 or more. In 83% of these job groups, tenured employees are paid the same as new employees and 30% of the time they earn less.
However, when it comes to job groups paying $75,000 or less, loyalty does pay. Industries such as retail and manufacturing continue to pay more for tenure compared to new workers.
Employers continue to face challenges in attracting and retaining employees while tightening budgets amid a hot labor market. With the addition of pay transparency laws that require employers to post pay ranges on job descriptions, workers are more likely to recognize any pay disparities between existing and new employees.
"An organization may want homegrown talent, they may value the fresh perspective that external hires bring, and they may want a mix. All of these approaches are valid. But the reality is that we're in the pay transparency era and salary ranges are out in the open. Companies have to be prepared to publicly explain why there may be pay gaps between tenured and new employees," said Chris Martin, research economist at Syndio. "Remember, with pay, perception is reality: how employees feel about their compensation impacts their satisfaction with their employer and their desire to stay."
#3: 83% of tenured employees
are paid the same as new employees
04 Employment Trends
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As more employers call employees back to the office, a new report from Korn Ferry shows how employees feel about the new requirements. Nearly two-thirds (62%) of professionals surveyed say their employer is mandating a return to the office and more than half (58%) say it will negatively impact their mental health.
When asked whether they would prefer (a) a job with a higher salary but no remote work flexibility or (b) a job with a lower salary but flexible work hours, 72% responded that they would take the lower salary if they could work from home. Avoiding the hassle of getting ready and traveling to the office is the main reason they prefer to work remotely (61%).
Most respondents (84%) claim that working from home increases productivity, and 92% say the boss is more interested in having workers return to the office than the workers themselves.
Of those who say employers are mandating a return-to-office, the largest percentage (38%) say they will be required to be in-office three days per week. Almost half (42%) say that seeing coworkers will be the best part of going back to work.
#4: Employees reluctantly return to the office
© Staffmark Group. The research presented in this report was developed from external sources and reflects general market trends. Monthly employment and unemployment figures can be volatile, and payroll employment estimates can be subject to revision. Some of the information and data may or may not be relevant.
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There are many steps in the hiring process that have been improved thanks to changing technology. Recruiters and hiring managers no longer have to sort through hundreds of applications, repetitive communication can be easily automated, and applicant tracking systems (ATS) allow employers to track each candidate’s journey. So, how might this evolve with emerging AI technology?
Some companies have already jumped on the AI bandwagon, using the technology to help screen qualified applicants from a pool of candidates, utilizing chat bots to help answer candidate questions quickly, and even using AI to help match job seekers to jobs that match their qualifications.
AI continues to be a popular resource for determining qualified candidates early in the hiring process. Technologies such as HireVue allow candidates to take virtual interview assessments that use AI to transcribe and analyze the candidates’ responses quickly to determine if they’re fit for the role. This saves time for recruiters, hiring managers, and employers and allows them to focus on the right candidates.
However, according to a recent survey from the Pew Research Center, most Americans (71%) oppose the use of AI in making final hiring decisions. But not all oppose it entirely, 47% think AI would do better than humans at evaluating all job applicants equally, while only 15% believe AI would be worse. Overall, when it comes to Americans’ opinions about the impact of AI use in the workplace, 56% think over the next 20 years the impact will major, while 22% believe it will be minor.
#5: AI is streamlining the hiring process
06 Employment Trends
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Progress Report
October 2022
OCT 22'
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MAY 2023
Numbers and knowledge for a competitive workforce.
Employment Data
Employment trends
Employment Data
Employment Data
Employment Data
Employment Data
Jobs Update
aPRIL 2023
0.1% MoM Change
Unemployed Persons
0.0M MoM Change
APRIL 2023
5.8
Million
employment trends
Let us be your resource as you plan budgets, set pay rates, and build and retain an engaged workforce. The enclosed employment trends, hiring challenges, and compensation tips are designed to help you better understand today’s employment environment to make informed staffing decisions.
Adam Pressman, US employee research leader at Mercer
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Let us be your resource as you plan budgets, set pay rates, and build and retain an engaged workforce. The enclosed hiring trends and insights are designed to help you better understand today’s employment environment and make informed staffing decisions.
• JOBS UPDATE
Inside This Issue
The Progress Report
is a monthly guide published by the Staffmark Group family of brands. If you have any questions or if you would like to learn how we can help tackle your hiring challenges, please
contact your local office
or
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email us
“The top three reasons employees consider leaving their employer are pay and benefits, burnout due to workload, and insufficient healthcare benefits. For some, especially frontline and low-income employees, that means financial survival. Others who have their basic financial needs met are placing increased importance on their lives outside of work.”
Staffmark Group is a family of staffing brands with a mission to align people and companies to create opportunity. We provide the expertise, connections, and technology to help people and companies succeed. If you need a job, we want to provide it. And if you need staff, we want to deliver the best candidates.
A proud member of RGF Staffing, Staffmark Group is organized into three operating units: Commercial Staffing Services (Administrative & Light Industrial), Technical & Professional Services, and Strategic Workforce Solutions. Our national network of 400+ branch and on-site service locations connects 250,000 talent annually.
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• EMPLOYMENT TRENDS
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Employers need to address mental health
Many laid off workers plan to switch industries
83% of tenured employees are paid the same as new employees
Employees reluctantly return to the office
AI is streamlining the hiring process
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Streamline your application. Long applications can be discouraging to applicants and make them drop-off halfway through. Avoid having candidates re-enter information that can already be found on their resume. Make sure your app is also accessible on mobile and tablet devices.
Utilize automation software. Scheduling or communication software can save you and your team time while setting up interviews and communicating with candidates.
Outsource. A staffing agency can source and hire top talent fast, saving you time and valuable resources. Recruiters are constantly building their talent pipeline.
Quick tips to decrease time-to-hire
1.
2.
3.
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How long and deep might the recession be? The chart to the right shows the duration of past recessions. The Conference Board predicts a recession in 2023 with three straight quarters of negative GDP growth (-0.6%, -1.7%, -0.5%) to start the year and a 1.1% rebound in the fourth quarter.
of companies say they plan to lay off employees within the next 6 months
56%
of companies with recent layoffs are hiring contractors to replace laid off workers
37%
of companies with recent layoffs are hiring contractors to replace laid off workers
78%
Facebook Jobs Update
On February 22, 2023, Facebook Jobs will be disabled. Don’t be discouraged; there are still many ways to recruit on Facebook. Here are three!
1. Use Facebook Groups. There’s a Facebook Group for everything! Research and join groups that are dedicated to job hunting, local to your target area, and industry specific.
2. Continue to post job openings. The job feature may be going away, but you can still promote your jobs as a regular Facebook post. When writing your post, include details that will make your ideal candidate “stop the scroll.”
3. Encourage employee engagement. When promoting new openings on any social media platform, encourage your employees to share with their own network. This will extend the reach of your post tremendously.
Compared to the start of 2022, the survey found that the proportion who say it is easier to hire (28%) is greater than those who report it harder to hire (20%).
For businesses struggling to find candidates:
• 84% are boosting wages
• 72% are developing their existing workforce
• 68% are offering flexible hours/schedules
• 61% are implementing leadership development programs
• 60% are allowing remote work options
Despite 61% of CEOs finding it difficult to operate at full capacity due to hiring challenges, 43% say they anticipate higher profits in 2023, up from 38% in Q3 2022.
Inflation has also remained a huge challenge for business leaders going into 2023. When asked about the effects of inflation:
• 93% said increased wages and compensation
• 82% cited increased prices from vendors
• 64% reported higher costs for raw materials
• 58% experienced higher energy prices
Source: The Conference Board
55%
of CEOs believe a global recession is the greatest challenge for their companies
Assess your financial wellbeing program for consistency with inclusion and diversity values.
Consider programs that target specific conditions for high-cost cases such as maternity, diabetes and depression.
Promote the use of mobile apps for physical wellbeing.
Encourage your leadership team to participate in wellness challenges or similar programs to set an example for your employees.
Ensure your health plan offers broad access to in-network mental health providers.
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said they plan to freelance or start their own business while looking for a new job.
Source: Fiverr
57%
Four out of 10 U.S. workers say their job negatively affects their mental health, compared with 3 out of 10 who report a positive impact. Of the workers who report that their workplace has a negative impact on their mental health, 57% are unable to confirm the existence of easily accessible mental health support services in their workplace; 24% report the absence of these services; and 33% are unaware if their employer offers them.
An EAP review checklist
Looking at your current EAP offerings is a great way to determine what additional resources could be provided to employees.
MAY IS MENTAL HEALTH AWARENESS MONTH
"The economic downturn, particularly in the tech sector, and the associated wave of layoffs has initiated a talent migration. Skilled workers are now reconsidering their career priorities and exploring alternative work opportunities," said Micha Kaufman, CEO of Fiverr.
Laid-off employees are looking for more fulfilling, flexible work in their next job. Over 75% of all respondents reported feeling unfulfilled in their previous role, and 74% agreed that their role lacked work-life balance. Close to 80% said they plan to explore a new industry (77%) and practice new skills (79%) in their next role.
New employees make the same or more than tenured in
83% of high-paying jobs.
Source: Syndio
of HR professionals say AI will benefit them over the next two years.
Source: The Conference Board
65%
of Americans say they would not apply for a job that uses AI to help make hiring decisions.
Source: Pew Research Center
66%
