What does the workforce of 2023 look like?
As we approach 2023, we must look back as we make predictions about what the workforce will look like in the coming year. The last two years have created a lot of upheaval for many companies, and with the current economic climate, it’s essential to put in place initiatives that will futureproof your business. By looking at the trends that have emerged over the previous decades, we can make some predictions about the workforce of 2023.
The workforce is gradually aging, contributing to resignations
The overall population of Americans over 65 grew by 59% in 2020 & the projected growth is 72%1 which shows you that there are high numbers of what would traditionally be retirees remaining in the workforce. This situation will continue as the number of people over 65 continues to grow more than the number in the workforce, and the US will populate more with retirees than before.
An aging population puts pressure on the younger generations, decreasing their chance of career progression within companies. In addition, many over 65s are in management and C-suite positions, and economic forces mean they have to continue working for longer than generations before them.
The labor shortage continues, which could be good news for graduates
Persistent labor shortages continue to put pressure on businesses as experienced workers are difficult to find. The effects of the Great Resignation continue to be felt across multiple different sectors as employers struggle to fill positions.
Interestingly, this could be a positive thing for graduates. According to a recent survey from the National Association of Colleges and Employers (NACE)2, firms are increasingly open to hiring inexperienced graduates with the intention of developing their skills in-house. NACE found that the 246 firms that responded plan to hire 14.7% more 2023 graduates compared to the class of 2022. This means that the number of younger people entering the workforce will be significantly higher than in previous years.
This injection of young talent represents a real opportunity for companies to shape the future of their businesses. With new talent comes fresh ideas and the ability to create a culture that puts your employees at the center of the business.
Employees are increasingly looking for better work-life balance
According to Firmbee3, there are several benefits that can make your company more attractive to top talent. Work-life balance is more important for people than ever before. This is due, in part, to the pandemic. When you consider that 94% of workers in the service industry work over 50 hours a week4, you can see why this shift is happening. According to a 2018 Statista survey, 72% of people think work-life balance is very important5, which has increased in importance over the last couple of years.
True flexibility is another benefit many people look for in a company before applying. While many companies were forced into offering flexible working during the pandemic, many have decided to continue with this offer. This is especially important to working parents, who need to be available for family commitments, and the younger generation. Part of this is the rise in people looking for remote working so they can go on “workations” - extended vacations during which they can continue with their regular work commitments causing no disruption to their employer.
If you need help attracting top talent, we can help.