Job Market Changes in 2019
Change they say is the only constant thing. This is generally true but has never been truer than it is now with the job market changes we see today. With unemployment rates maintaining almost half a century record low and a few other factors, experts are looking at how this has impacted the job market in 2019.
In discussing this subject, we shall look at it from two angles. There are two major players in this industry and they are the employer and the job seeker. We shall, therefore, discuss this from their respective perspectives.
One thing that most experts agree on is that this is and will be a candidate-driven market and not the other way around. That said, the employer still has options open to them.
The importance of where businesses site their bases of operation will likely become a major point of consideration even more than it previously was. As a way of keeping their overheads low, more companies are likely going to move to cities in the United States with lower costs of living.
This will reduce their real estate and labor costs. Some companies have even opted to leave the U.S. entirely for countries where they can get much cheaper labor and operational cost.
With the advancements in AI (Artificial Intelligence) and other BPM (Business Process Management) platforms, more companies are likely to opt to replace human employees with these solutions. Aside from the fact that they can deliver at a higher level of efficiency, they will also cost far less to maintain than what would have been spent on wages and other benefits.
Creative Hiring Processes
The competition for top talents has been much stiffer. This means that companies have been creative when selling themselves to their target talent. With several options available to these top talents, companies must stand out during the employment process or they will lose out to the competition.
Strategic Wage Cuts
In this current market, cutting of wages is not something that can be done blatantly. It must be tactful. According to Forbes, it has been predicted that companies may begin to look inwards at their top earners. These top earners are mostly older folks whose earnings have gotten quite huge as a result of experience and time spent with the company.
If a company chooses to shift its base of operation to a cheaper location, it can use this opportunity to offer these older, high earners incentives to quit rather than move to an entirely new location with their families. Should they accept the offer, their replacements will most certainly not be paid what they were paid.
Forbes also predicted it might get nasty in some cases if the older employees refuse to leave. The bottom line is that companies will likely find ways of replacing existing high wage earners with new employees who will fill those same roles without earning as much.
The Job Seeker
So, what’s the forecast for the job seeker since we already know it has been a candidate-driven market?
Increase in the Workforce
Some experts believe more Americans have opted to join the workforce as a result of the better working conditions they see. This is especially true for skilled workers.
Increase in Remote/Part Time Jobs
The largest section of today’s workforce is made up of Millennials. Given their makeup and approach to jobs, companies have engaged them by offering remote or part-time employment arrangements emphasizing deliverables rather than the traditional routine of the workplace.
Some companies also offer this as a way of making savings on wages and the cost of benefits.
A Wider Disparity Between High and Low Earners
The competition for talents has been at the very top of the food chain. What this means is that the more skilled talents will keep earning higher and higher as companies continue to make them enticing offers meant to lure them away from their current employer.
However, this will not be the same for the everyday worker whose pay increase will remain tied to minimum wage laws.
The 2019 job market has no doubt be a very interesting one for both the employer and the employee. We have seen significant growth in jobs throughout several industries. However, even though employers have options open to them the ball rolls towards the job seeker as they have more options when choosing a job opportunity.