Job Market Predictions for 2023

Following a year of mass layoffs, hiring freezes and record low unemployment, employers, recruiters, and candidates alike are all navigating the ever-changing world of work. As we head into the new year, here is what we can expect for the 2023 job market.

The Talent

Since the pandemic shook up the world of work, employees have realized their world shouldn’t revolve around work. The calls for a work-life balance, greater benefits, and more flexibility have been at the forefront of conversations from the technology industry to education and healthcare.

For the first time ever, talent is calling more of the shots than employers. Those open to work and potential candidates in all sectors expect far more out of employers than in previous years. Negotiations begin with high salaries before transitioning to sign on bonuses, work from home flexibility, and more.

The best candidates have multiple job offers, requiring employers to counter and continue increasing salaries and benefits. Talent is playing a game that is outside of the corporate playbook, throwing the entire process of kilter.

The Playing Field

The market is not only affected by talent looking for roles, but also everything that goes on in the world around us. Last year, we saw multiple diseases sweep the nation, war, continued supply chain shortages, and rising inflation.

Those stressors will continue playing a large role in 2023.

The Russian invasion in Ukraine is going on its 11th month, inflation continues to play a key role in prices everywhere, and interest rates are on the rise. The 2022 election cycle may be over, but the 2024 cycle is just beginning, bringing with it challenges that will affect both employers and employees.

Supply chain challenges will continue wreaking havoc on the market as well.

Given the global conflicts involving Ukraine and Russia and underlying tensions with China, the supply chain dynamics is requiring entire sectors to reimagine not only where they will move their primary activities, but also their alternatives as new geographies and suppliers are explored.