Yesterday we looked at the economy, and today more on labor. It’s not getting any better – and it turns out, it’s several reasons now that we have some time and perspective—several factors.
Those retirement numbers are real – and while some have returned, they are not bouncing back as much as the workforce as a whole. COVID, and additionally long COVID, is a factor – more than double the number of people who missed work last year between June 29 and July 11 missed this year. And overall, immigration IS down – substantially. Visa levels are now actually declining. Add it all up, and you have a historically significant imbalance.
More women are self-employed now than pre-pandemic, particularly in Black and Hispanic communities and those without bachelor’s degrees, per the Center for Economic and Policy Research. The likely reason – is a reaction to the childcare worker shortage.
Women are also more pro-pay transparency. 53% of women say salary-sharing will lead to better paycheck parity, compared to 42% of men. Only 47% of women consider themselves well-compensated, compared to 52% of men. That’s from new LinkedIn data.
Cybersecurity pros in the private industry make 14% more than those in the public sphere, per data from Lightcast.io. That’s continuing the trend, and salaries this year for public professionals.
According to a study of 1,000 hiring managers in the US, 60% are struggling to find the quality talent needed to fill open roles, with many now turning to freelance workers to bridge the growing skills gap.
According to Upwork’s most recentFuture Workforce Report, 56% of companies that hire freelance workers hired freelancers at an increased rate within the last year. Companies are seeking out skilled independent workers to fill empty positions to compensate for the ongoing loss of talent, particularly in data science, accounting, and IT department.
McKinsey, with an article making a case for hiring people from “more unconventional backgrounds.”
The report acknowledges that this is “hard to put into practice,” noting that “hiring managers are skittish about choosing people with learning curves to fill mission-critical roles.” the study finds “people are capable of mastering distinctly new skills and that unconventional tech hires are not so unconventional after all. But, the willingness to hire them and the commitment to help them expand their capabilities require a shift in thinking.”
Why do we care?
The key message emerging over and over again is becoming more flexible and creative on hiring solutions. Those businesses who stop looking for the perfect candidate, build their own workforces, or get creative with the benefits they offer.. are going to do well. McKinsey is correct; it’s not easy – but then again, it’s not like it’s easy to hire anyone.