Tag: Job Market

Selective industries experience cooling job market

The Employment Trends Index, published by The Conference Board, experienced a slight decline in May, with a reading of 116.15 compared to an upwardly revised reading of 116.79 in April. This decline is primarily observed in specific industries, particularly the information sector.

Selcuk Eren, a senior economist at The Conference Board, commented on the situation, stating, “The Employment Trends Index showed a slight decrease in May, continuing its gradual decline since reaching its peak in March 2022. Despite this, the index remains at a relatively high level, indicating that job gains are expected to persist in the coming months, albeit at a slower pace.”

Eren highlighted that job losses are concentrated within a few sectors, while other industries are still struggling with labor shortages and continue to create employment opportunities. He further emphasized, “Overall, we are still facing a tight labor market, especially when compared to pre-pandemic conditions. Job growth is happening across the economy, with in-person service sectors leading the way. Industries such as leisure and hospitality, as well as the government sector, which are yet to fully recover from the pandemic, are projected to continue adding jobs. Additionally, the healthcare and social assistance industry will experience sustained employment growth due to the aging US population.”

Although the labor market cooling is currently limited to select industries, notably the information sector encompassing tech companies, Eren mentioned that weaknesses are emerging in other labor indicators. These include a decline in voluntary resignations and a surge in layoff announcements during the first five months of 2023.

The Conference Board anticipates that the Federal Reserve will increase interest rates by 25 basis points at least once to curb wage growth and alleviate inflationary pressures.

The decline in the Employment Trends Index for May can be attributed to negative contributions from five out of its eight components, namely the percentage of respondents reporting difficulty in finding jobs, real manufacturing and trade sales, the percentage of firms unable to fill positions currently, job openings, and industrial production.

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Fewer workers are quitting and labor market remains strong

According to the US Bureau of Labor Statistics, seasonally adjusted data released today reveals that job openings in April surpassed those in March, reaching their peak since January. Conversely, separations, including both quits and layoffs, decreased in April compared to March and reached their lowest levels since 2021.

ABC News reported that the unexpected surge in job openings highlights the robustness of the US labor market. Nick Bunker, research director at the Indeed Hiring Lab, stated, “Demand for workers remains strong, and the labor market continues to perform well.”

In April, the US witnessed a total of 10.1 million job openings, reflecting an increase of 358,000 positions from March. However, when compared to the same month last year, there were 1.65 million fewer job openings.

The sectors experiencing growth in job openings were retail trade, healthcare and social assistance, as well as transportation, warehousing, and utilities.

Total separations declined by 4.8% in April compared to March, with a year-over-year decrease of 7.6%. These figures marked the lowest level since May 2021. Separations encompass both voluntary resignations (quits) and layoffs or discharges.

In April, quits amounted to nearly 3.8 million, representing the lowest level since March 2021. This indicated a decrease of 49,000 from the previous month and 704,000 from the previous year.

Meanwhile, layoffs and discharges in April totaled 1.58 million, indicating a decline of 264,000 from March. However, the number of layoffs and discharges increased by 239,000 compared to the previous year.

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Slower salary increases hinder job market

India’s job market experienced a slowdown in salary growth during the fiscal year 2022-23, with overall pay increments decreasing to 9% from 10% compared to the previous year. This decline was primarily attributed to sectors such as agriculture and agrochemicals, automobile and allied industries, and BFSI (banking, financial services, and insurance), among others. The findings were reported by Teamlease and published by the Press Trust of India.

The report, titled ‘Jobs and Salary Primer Report’ for 2022-2023, surveyed 403 employers and 357 employees across nine major cities and 17 industries.

Teamlease’s research revealed a range of salary growth between 3.20% and 10.19% across various sectors, indicating a slightly slower pace compared to the previous year.

Kartik Narayan, the Chief Executive Officer of Staffing at TeamLease Services, attributed the modest salary growth to socioeconomic factors such as global layoffs and funding challenges, resulting in a lower median salary growth compared to the previous year.

Despite the dip in overall salary growth, the report highlighted that more than 41% of job profiles in various industries had less than a 5% pay difference between permanent and temporary roles, suggesting an increasing parity in temporary employment.

Kartik Narayan emphasized this point, stating, “An interesting aspect to note is that a staggering 41% of all profiles have less than a 5% pay difference between compensation structures for permanent and temporary roles, indicating the growing parity of temporary employment.”

The report also noted that as organizations continued to prioritize growth and digital transformation, the demand for sales and IT roles remained high. However, the BFSI segment experienced a significant decline in average salaries in FY23, following two years of steady growth.

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“Employers need to be prepared to pivot,” hiring expert says

In today’s competitive job market, attracting and retaining the best talent requires a strong employer branding strategy. With the rise of digital platforms, candidates are increasingly turning to the online realm to evaluate potential employers. Therefore, it is crucial to develop a solid vision, culture, and strategy that will enhance your recruitment process.

According to Nishita Lalvani, Marketing Director for Singapore, Southeast Asia, and India at Indeed, employers face various challenges when it comes to building their branding. To remain relevant to a younger audience, it is essential to communicate a sense of purpose and emphasize diversity, inclusion, and authentic employee stories. These are key aspects that employers must grasp in order to succeed.

To refine your employer brand, candidate feedback is an invaluable source of information that cannot be overlooked. By gathering insights and data from candidates, employers can identify what matters most to today’s employees and adjust their branding strategy accordingly. Lalvani emphasizes the need for employers to be adaptable, including embracing new technologies, responding to external disruptions, and potentially changing their ways of working.

Nishita commented: “Companies must also prioritize authenticity in their messaging. Instead of relying on corporate jargon, it is crucial to adopt a more human and relatable tone. Understanding and addressing the aspirations of your target audience is imperative. This can be achieved by directly asking employees about their priorities, such as growth, learning, hybrid work, wellness, and more.”

Consistency across all external channels is vital. Whether it’s your website, social media platforms, company pages, or platforms like Glassdoor, maintaining a cohesive brand image is essential. Employers can also measure the effectiveness of their employer branding efforts using specific metrics.

Becoming an “employer of choice” is a common goal for organizations today. To achieve this, employers must establish a high level of trust and purpose, and be seen as inclusive of individuals from diverse backgrounds and experiences.

Lalvani concludes that your brand promise should evolve and be central to the employee experience. It is important for your messaging to be authentic, aligned with your mission, and socially conscious.

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Online recruitment in India faces decline and uncertainty

According to the latest findings from foundit Insights Tracker, online recruitment in India experienced a 6% decrease in hiring activity during April 2023 compared to the same period in 2022.

The Tracker’s analysis highlighted the volatile nature of India’s job market, attributed to economic uncertainty and the ongoing appraisal season when companies conduct performance evaluations. In April 2023, the Tracker index declined from 295 to 276, indicating a month-on-month drop of 4%.

The report further indicated that e-recruitment is currently facing a delicate situation. Among the 27 industries monitored by the Tracker, six witnessed improvements in online hiring over the year. Notably, the Retail industry saw the highest growth rate at 22%, closely followed by the Tourism sector at 19%. Conversely, the IT-Hardware and Software industry experienced a decline of 22% compared to the previous year.

In terms of job functions, out of the 12 functions monitored, only one function observed growth over the year. The Sales and BD (business development) function reported a 2% increase, while the HR and Admin function remained stagnant with 0% growth. The Customer Service function encountered the most significant decline at 28%.

Among the 13 cities monitored, online recruitment surpassed the levels of the previous year in only two cities. Ahmedabad reported a modest increase of 3% compared to the same period last year.

Meanwhile, start-up jobs displayed a notable growth rate of 19% when compared to the previous year.

Considering the experience level of jobseekers, entry-level positions with 0-3 years of experience witnessed a 9% decrease in demand. Intermediate roles with 4-6 years of experience experienced a decline of 20% in hiring. Mid-senior level positions with 7-10 years of experience reached an all-time low in hiring, recording a decrease of 25%. Senior level roles requiring 11-15 years of experience had a more moderate decline of 15%. Leadership roles with 16+ years of experience saw the most significant drop of 34% compared to the previous year.

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US executives feel they have not been paid fairly in-line with inflation

A 2023 Job Market Survey has examined the state of employment in the United States – highlighting the growing economic concerns between lower and high wage earners.

The survey, commissioned by the Professional Resume Writers (PRW), interviewed a cross-section of 2000 people of which 92% were employed and 59% had a college degree,

Overall, the survey revealed concerns about job security has increased by 49%, however, for those at entry-level, the percentage leaps to 91%. Working from home has impacted employees significantly, based on their level within the organisation – a concern for entry-level employees, but with no impact at the executive level.

Key survey findings:

66% of executives are worried about job security in 2023. The highest of any of the levels surveyed.
Worry about job security has increased by 49% but, for those early in their careers their worry increased 91% over last year with nearly half of entry-level workers reporting being worried about job security in 2023.
21% of workers said that job security has been impacted by working from home
97% of Entry-Level workers feel like they have been impacted by the rise in cost of living
Executives feel they have not been paid fairly in-line with inflation
6 out of 10 people are looking to change careers
Worry about job security has increased by 111% for those with bachelor degrees

Michelle Masters, co-founder of Professional Resume Writers, said: “It’s not surprising that people are concerned about their job security, given the current economic climate. It’s important for professionals to take proactive steps to maintain their employability, such as staying up-to-date on industry trends and continually honing their skills. Additionally, individuals who are considering a career change should focus on their transferable skills and how they can be leveraged in a new field.”

For further information: (https://professionalresumewriters.com/job-market/)

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Global online job advertising soars

According to a recent report titled “Online Job Advertising Market Update” by Staffing Industry Analysts, the global online job advertising market experienced a significant increase in value in 2022, reaching $36.1 billion. This represents a 16% growth compared to the previous year. Since 2015, the market has been steadily expanding at a compound annual growth rate of 15%, as measured by SIA.

Out of the total market value, the 50 largest companies collectively generated $29.1 billion in revenue, accounting for 80% of the global market share. Impressively, the two largest firms alone commanded a substantial 45% share of the market.

The report also highlights the rapid expansion of artificial intelligence (AI) applications within online job advertising. Various use cases for AI were identified, including candidate fraud detection, AI-powered chatbots for client interactions, automated writing of job advertisements, filling job applications, and generating cover letters.

Based on the report’s findings, the top five global online job advertising firms in terms of revenue for 2022 were as follows:

  1. Microsoft (LinkedIn) – $8.28 billion, capturing a 23% market share.
  2. Recruit Holdings (Indeed) – $8.03 billion, holding a 22% market share.
  3. Axel Springer (Stepstone/Totaljobs/Jobsite) – $1.60 billion, representing a 4% market share.
  4. Seek – $957 million, constituting a 3% market share.
  5. ZipRecruiter – $905 million, also occupying a 3% market share.
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Job ads with a salary receive 6x more applications

The proportion of UK job ads including vital salary information has slipped to a seven year low as employers ignore calls for salary transparency.

Adzuna – a job search engine company – analysed 80 million UK job ads advertised between 2016 and April 2023 to highlight the sectors, regions, and companies who are most and least transparent about pay.

Despite the data showing job ads with a salary receive 6x more applications, 51.5% of UK job ads disclose salary in April 2023 – down from 61.4% in April 2022.

Key report findings:

  • Energy, oil and gas sector sees largest fall, followed by admin and trade and construction
  • Most secretive sectors: retail, scientific and QA, creative and design
  • West Midlands is the most straight talking with 55.6% of job ads disclosing pay
  • Only 29.5% of job ads in Northern Ireland feature salaries, the lowest of any region, followed by Scotland (41.7%), Wales (47.0%) and London (49.7%).

Job vacancies have slipped -19.5% across the UK and the labour market has become tighter. Falling salary transparency suggests employers may be using this shift in power to rein in salary disclosure and keep a tight lid on budgets when filling roles.

Only 26.8% of Retail jobs included salary information in April 2023, falling 14 percentage points (pp) from 40.8% a year ago. The next worst offending sectors are Scientific and Quality Assurance (QA) (29.3%) and Creative and Design (31.1%).

Compared to a year ago, salary transparency has slipped fastest in the Energy, Oil and Gas sector, where the proportion of job ads disclosing salary information has fallen by 17.5 pp from 50.9% to 33.4%. Similarly, fewer salary details are on offer for admin jobs compared to a year ago, down 17.1pp from 73.0% to 55.9%. Trade and Construction saw the third largest fall, down 16.3pp from 69.1% to 52.8%.

Voluntary jobs are most likely to include pay information, with 84.3% of job ads disclosing salary in April 2023, followed by Social Work roles (72.9%) and Logistics and Warehouse positions (70.9%).

London has been cited as having both the worst ethnicity pay gap and worst gender pay gap, suggesting a correlation between a lack of transparency and inequality.

Andrew Hunter, cofounder of Adzuna, said: “Compared to last year, the power in the jobs market has shifted back to companies and we are seeing fewer job ads disclosing the salary as employers find it easier to fill positions. As well as making the job hunting process less stressful and less time consuming for jobseekers, salary transparency is a crucial step towards eliminating pay gaps in the jobs market.”


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Malaysia’s online recruitment activity increases

According to foundit Insights Tracker (formerly known as Monster Employment Index or MEI), online recruitment activity in Malaysia increased by 2.6% year-on-year in March 2023, compared to the same month in the previous year. The tracker’s index rose to 78 in March 2023 from 76 in March 2022, showing a 3% increase from February 2023. These figures suggest a gradual improvement in the labor market and a continued increase in demand for online jobs in the coming months.

Sekhar Garisa, CEO of foundit, noted that the job market in Malaysia has displayed resilience and consistent growth over the past year, indicating a positive shift in the labor market. Despite concerns about the global economic outlook, companies are still actively seeking new talent, especially individuals with specialized and high-demand skill sets. Therefore, job seekers should keep up with industry demands and focus on building skills that give them an edge.

In March 2023, the Hospitality industry dominated the job market with a 59% annual increase, while the Retail and BFSI (banking, financial services, and industries) industries saw a rise in hiring demand with a 26% increase in Retail and a 17% increase in BFSI. However, the IT, Telecom/ISP, and BPO/ITES industries experienced a 24% decrease, which can be attributed to recent retrenchments and hiring freezes by major tech companies.

In terms of functional roles, Hospitality & Travel had the highest demand with a growth of 210% year-on-year in March 2023, followed by Sales & Business Development, which registered a consecutive uptick in hiring demand of 15% over the year. Conversely, Customer Service roles experienced a double-digit decline of 51% over the year.

foundit Insights Tracker provides a comprehensive monthly analysis of online job posting activity conducted by foundit. The company Monster APAC & Middle East was rebranded as foundit last year

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Mixed signals in tech job market for April

CompTIA has analyzed the US Bureau of Labor Statistics job data from April and found that the number of tech occupations decreased by 99,000, resulting in an increase in the unemployment rate for tech occupations to 2.3%. However, the report also showed that tech sector companies increased staffing by 18,795, marking the highest monthly hiring volume since August 2022. Despite the decrease in tech occupations, there was continued demand for tech talent, as employers listed over 300,000 job postings for tech positions in April. The IT services and custom software development sectors led the hiring pace, followed by cloud infrastructure, data processing, and hosting. The job postings for tech positions were dispersed geographically and across various industries, with the highest volumes occurring in administrative and support, finance and insurance, and manufacturing sectors, and in metropolitan markets like Washington, New York City, Dallas, Los Angeles, and Chicago. Furthermore, the number of tech job postings specifying remote or hybrid work options rose to more than 65,000 positions across the US. The Chief Research Officer at CompTIA, Tim Herbert, stated that the April job data showed mixed labor market signals. The strong employment gains in the tech sector were offset by the pause in tech hiring across the economy.

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