ZipRecruiter recently published an analysis of the current dynamics of labor supply and demand in the economy. The conclusion was that the US economy had exhausted its labor supply for the first time.
“2022 was the first year on record that labor demand has fully caught up with supply,” said Julia Pollak, chief economist at ZipRecruiter.
She said that before the pandemic, there was an average of 2.4 unemployed for every vacancy. That has shifted to around 0.5 unemployed per job offer.
ZipRecruiter is a job board created to actively connect job seekers with employers and vice versa, using sophisticated and cutting-edge artificial intelligence. This process has improved the overall job search for millions of people and helped companies of all sizes find and hire the right candidates on time.
“Unlike traditional online job boards, ZipRecruiter acts as a facilitator, curating job listings for job seekers and candidates for employers,” Pollak said. “Since our inception, we’ve connected more than 3 million companies and more than 100 million job seekers.”
As chief economist, Pollak combines high-level data from the Bureau of Labor Statistics with data from the ZipRecruiter database to measure the health of the labor market. It then identifies and communicates hiring trends and insights to external sources such as the media, as well as job seekers and employers, enabling them to make accurate predictions and build future processes on those predictions.
Through the most recent analysis, Pollak has identified several hiring trends since the start of the COVID-19 pandemic. She found that companies see an average 20% increase in employee resignations each month. Additionally, companies have increased their hiring efforts by 15% each month. And with the major shift across industries toward remote work, more applicants are citing it as one of their desires in a job. Only 12% of job postings actually offer remote work, she added.
“If every job in business is that could be remote was removed, that would still only be 37%,” Pollak said. “More and more workers are waiting for a job that gives them more flexibility over where and when they work.”
The report also said that the trucking industry in particular is imbalanced in terms of labor supply and demand, with a sharp increase in truck driver and warehouse vacancies. Pollak named three factors she believes have most influenced this: the acceleration in e-commerce caused by the pandemic, the destruction of small retail businesses caused by the pandemic, and the acceleration of remote working.
But despite the struggles in today’s job market, Pollak encourages employers to continue digging into the data.
“You really need to know what’s going on around you and what people are talking about to overcome these staffing challenges,” she said.
For more FreightWaves content by Britni Chisenall, click here.
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