5 Factors Changing the U.S. Job Market
Why is employee retention so difficult? In the VIDEO: 5 Factors Changing the U.S. Job Market I talk about the monumental changes in the U.S. job market that are having a major impact on hiring and retaining employees. There are basically 5 factors at play in the US economy that are radically changing the job market and influencing how organizations are competing for top talent.
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It’s a Job Seeker’s Market: As the U.S. economy improves there is a higher demand for workers than over the past 10 years. According to the latest data from the U.S. Department of Labor, since 2015 job openings surpassed hires, meaning that there are more jobs available than can be filled. Quits, or voluntary separations, are rising accordingly as new and better opportunities become available. This is great for job seekers yet problematic for organizations looking to retain top talent.
- A Decrease in Layoffs is Driving Quits: According to the latest data from US Department of Labor, quits plummeted during the recession as workers weathered the poor economy. This created a back-log of potential quits that are being released as the economy improves. The recent decrease in layoffs is making employed job seekers more confident in their ability to find better work, thereby increasing quits.
- Surprisingly, Tenure Actually Increased: With all of the new job openings available, it seems average tenure would be declining. But the latest data from the U.S. Department of Labor shows average tenure is at its highest point over the past 30 years. The data does show that tenure has been flat since 2012 and we suspect a slight decrease will be found once new data becomes available because of the improved economy.
- Mobility of Younger Workers is the Same: Looking at tenure by age shows that the youngest group of workers, aged 25-34, have the lowest average tenure of about three years. This hasn’t changed much since 1951. Think about it. Younger workers are usually more mobile and are looking for better career opportunities, therefore they change jobs more frequently.
- Millennials are Taking Over: According to the Pew Research Center, millennials now make up the largest segment of the U.S. workforce at 53.5 million employees. So more than one-in-three American workers today are Millennials (ages 18 to 34). There is a lot of talk about Millennials, but the truth is that they are just as mobile as young workers in the past, there are just a lot more of them in the workforce now.
If you would like to understand how to compete for employees in this job-seeker’s market, read the book, The Employee Experience: How to Attract Talent, Retain Top Performers, and Drive Results.
Take a look at more videos to assist in building a better organization:
VIDEO: 5 Employee Engagement Best Practices
VIDEO: Employee Satisfaction and Engagement. What’s the Difference?
VIDEO: The Influence of Managers on Employee Engagement
VIDEO: The Impact of 360-Degree Feedback Coaching
