The labor market is expected to remain tight for the rest of the year, despite a decline in employment growth.
Research from recruitment software provider JobAdder shows a 14% quarterly decline in the average number of new jobs created per recruitment agency for the three months ending December.
He says this year could be the golden age of recruitment – meaning a tidal wave of people looking to apply or recruit for jobs.
JobAdder managing director Martin Herbst said the market continues to favor job seekers.
“Right now it’s a candidate market and other things have to give in terms of being able to fill those jobs and that’s where even more attractive offers are coming in, [from] anecdotally, what we’re hearing in the market from our customers is that there are counter offers happening and wages are likely to go up.”
He said while there may be slight dips in activity, the report demonstrated the year-over-year differences the pandemic has brought to recruitment.
“This rings especially true when it comes to widespread candidate shortages, shifting career priorities and advances in remote work.”
Herbst said the rest of the year will likely continue to see “abundant” job openings.
“If you think about the macro trends in terms of the amount of job demand and new jobs being created versus the number of people available for those jobs, there’s an obvious disconnect.”
He said there were no massive short-term economic shifts on the horizon that could change that.
Herbst said rising interest rates and soaring inflation could have some impact, but compared to pre-pandemic levels, the labor market remained strong.