A cooldown has begun to help steady the labor market temperature following years of unsustainable heat. Yet the labor market remains highly competitive, and many job seekers are still struggling to get hired in 2024. Fortunately, salary growth has stabilized, and benefits transparency is higher than ever before. Remote work adoption also continues to accelerate, and the share of jobs that offer flexible working options has reached a new high.
Overall, job gains remain concentrated in three industries: health care & social assistance, leisure & hospitality, and government. This concentration is a concern, as it suggests these sectors are unlikely to pick up steam again next year and could depress future hiring.
The number of jobs advertised has rebounded from its post-pandemic lows, but remains below pre-pandemic levels across all industries. The hiring rate has also pulled back, reaching a new post-pandemic low in most industries, including those that typically hire at the highest rates such as tech and construction.
The top trend employers expect to transform their businesses is broader digital access, which is expected to fuel demand for skills such as adaptability and digital fluency. Geoeconomic trends, such as trade disputes and rising inflation, are also expected to significantly impact business model changes at half of surveyed organizations. Finally, workplace culture is a major factor shaping business models for more than one-third of employers. This includes factors such as employer branding, mental health support, and diversity metrics.