The Labor Market Trends To Look Out For In 2022
by Arnab Dey Business Development 15 June 2022
As a business owner, you’ve constantly got your finger on the pulse of your industry. Trends, hot-button issues, and innovation should all be a key focus if you want to stay competitive. In addition, you should also keep track of the labor market trends that are flourishing in 2022.
Freelance Work Will Become More Popular
The pandemic showed American workers that working in one place for one employer isn’t always necessary in the age of technology. Freelance-based workstyles like remote gig work and digital nomadism will become more popular among the workforce in 2022.
Workers will also begin to tap into the multitude of tools for solopreneurs to take advantage of the “be your own boss” lifestyle.
Applicants Will Have Higher Standards
As remote work has surged in the last few years, so has a desire to pursue it. The work/life balance many workers can achieve with remote or hybrid work has become particularly appealing.
Employees are now far less likely to stay with a job they aren’t passionate about if remote work isn’t an option. Instead, today’s workers are taking steps to better their working conditions in positions they enjoy.
Salary Negotiations Will Be In Job Seekers’ Hands
Due to the labor shortage many industries are experiencing, job seekers often have the upper hand in salary negotiations and work environments.
A common requirement for jobseekers is a flexible work environment. Unfortunately, for many organizations, remote work isn’t a feasible option. So, to compensate for that, companies are raising wages across the board to be more attractive to applicants.
Remote Work Isn’t Going Anywhere
The pandemic showed us that remote work is not only possible but is often more productive than in-office work.
Employees no longer have to worry about long commutes, which facilitates more productivity and improved morale. Organizations that don’t offer remote or hybrid work are more likely to see higher turnover or unfilled positions.
The Great Resignation Isn’t Slowing Down
As of March 2022, 44% of the workforce in the US were seeking new employment. Reasons vary, but by and large, it boils down to pay, flexibility, and inflation.
Organizations that aren’t taking steps to be competitive or incentivize employees will continue to see workers leave when they’re unhappy.
There’ll Be A Higher Demand For Benefits
A common reason a worker leaves or turns down a position is due to inadequate or lack of benefits and income security. Benefits such as life insurance, healthcare, parental leave, and more robust retirement plans are a common demand for workers. Companies that don’t offer those things are more likely to see positions go unfilled and have high turnover.
Side Hustles Will Flourish
Side hustles and the gig economy give workers more flexibility in how they earn income. That flexibility is a common reason why many leave their current positions. Side jobs allow employees to pursue new ventures, continue their education, and make their own schedules.
As in-office environments become more unpreferred, workers will continue to migrate toward those more appealing opportunities.
A labor market is an ever-changing machine that shifts with the workforce. No matter what industry you’re in, you’ll see similar trends across the board.
If you want to see your business thrive and ensure your staff wants to remain with you, consider the most common trends when evaluating your business model.