Here in the Midwest the leaves are changing color, the mornings are brisk, harvest dust is abundant, and football is disappointing. All signs that autumn is here, and winter is already peeking around the corner. As we wind down the year, it’s important to take stock of what the end of 2022 might look like with regards to hiring.  

The short version: hiring trends look positive through the end of the year, while weak economic growth and high inflation don’t seem to be affecting the majority of employers looking for talent. However, unemployment is radically low and will likely remain that way, meaning candidates still hold the decision-making power and new hires may be hard to come by.  

Economy

Many experts expect the US will enter a shallow recession in the first half of 2023, but for now, although growth remains stalled, we have avoided one thus far. Inflation is also expected to stall, though it will probably remain high through 2023.  

In the more immediate future, the Fed is expected to raise interest rates another percent or so, dampening household spending power.  

Hiring

Nearly all industries are expected to continue hiring into 2023, with IT expecting the most growth, followed by banking, real estate, and insurance. Per PR Newswire and Manpower Group, “employers reporting a Net Employment Outlook of +33% for October through December.”  

Organizations in the Midwest and the Northeast are the least optimistic, but employment outlook is still positive for both regions.  

Wage growth is still not keeping pace with inflation, and employers may need to drastically increase wages to both retain talent and hire new employees. Further, organizations will want to increase employee development initiatives in order to better retain their high performers.  

Q4 Summary

The struggle to find and retain talent is not going to let up anytime soon, and while the economy is still relatively stable, a recession is expected in 2023. Unemployment is expected to rise but will still remain generally low. Obviously, all these expectations could change at any moment!  

If you’re struggling to find or retain employees, consider a partner like Skywalk Group. We’ve partnered with hundreds of companies of all sizes, across all industries, solving their talent acquisition and retention problems and setting them up for continued success!  

By Jessica Palmer