The cooling labor market trend is an easy one to miss. But it’s important to be aware of, especially as it could impact your job search in 2024.
The cooldown has been more than a year in the making and reflects the long-term effects of COVID-19. While pent-up demand for post-pandemic spending still has some gas left in the tank, it’s likely that job growth will begin to slow down or even flatline next year if current trends continue.
Job postings have cooled since their peak in March, and hiring rates have also slowed. In addition, the number of job vacancies that require at least a bachelor’s degree has decreased to 17.6%, down from nearly 20% prior to the pandemic. This may seem like a minor change, but it’s an indicator that a large segment of the job market has been walled off from many job seekers because they lack the necessary education.
Other recent job market trends include stabilizing posted wage growth and salary transparency, both of which are good news for job seekers. In fact, nearly 60% of hiring managers report that outlining a salary range in the job description has helped them attract and hire more candidates.
But the current climate of cooler job postings, slower hiring and a pullback in quits can’t be ignored. If these trends continue into 2025, they’ll likely start to create a tightening squeeze on jobs in the economy. If that occurs, unemployment may rise and the economic recovery could falter.
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