Welcome to the March edition of Talent Market Insights! As we navigate through the dynamic landscape of the workforce, this issue brings forth essential indicators, workforce updates and the latest research shaping the global talent job markets.
🌟 Key Indicators 🌟
Canada Employment:
- Employment Rate in Canada decreased to 61.50% in February from 61.60% in January of 2024. (Statistics Canada)
- The Unemployment Rate rose to 5.8% in February 2024, rebounding from a 5.7% reported in January. The unemployed population grew by 35,800 from the previous month to 1,260,400, with increases noted for core-aged men and young men. (Statistics Canada)
- Meanwhile, 40.7k jobs were added to the Canadian economy, with full-time employment up 70.6k and part-time employment down 29.9k. following a similar-sized gain in January but defying the forecasts of a 20k growth. (Statistics Canada)
- Employment by industry showed gains in the service sector, with accommodation and food services (+26k) and professional, scientific, and technical services (+18k). Losses were seen in educational services (-17k) and manufacturing (-14k).
- Total hours worked rose a trend-like 0.3% month-on-month and wages were down to 5.0% year-on-year (from 5.3% in January and 5.7% in December).
- Interest Rate: The Bank of Canada held its target for the overnight rate at 5% during its March meeting and pledged to continue normalizing the Bank’s balance sheet, as policymakers remained concerned about risks to the outlook for inflation. (Bank of Canada)
U.S. Employment:
- Employment Rate in the United States decreased to 60.10% in February from 60.20% in January of 2024. (U.S. Bureau of Labor Statistics)
- The Unemployment Rate rose by 0.2 percentage points to 3.9% in February 2024, touching the highest level since January 2022 and surpassing market expectations of 3.7%. (U.S. Bureau of Labor Statistics)
- Interest Rate: The benchmark interest rate in the United States is at 5.50%. The Fed Funds Rate is likely at its peak for this tightening cycle and it will likely be appropriate to begin dialing back policy restraint at some point this year. (Federal Reserve Board)
🔥 The Market in Brief 🔥
Workforce Trend
- The U.S. job market is experiencing a phenomenon known as the “great stay”, where workers are not leaving their jobs as frequently, but hiring rates have declined. In February, the economy added 275,000 jobs, surpassing expectations, yet other concerning trends persist.
- U.S. layoffs surged to the highest level since last March, with 84,638 job cut announcements in February, driven by automation-related restructuring, particularly in the technology sector.
- According to Indeed, as of January 2024, 52% of U.S. job postings on Indeed did not include any educational requirements, which is an increase from 48% in 2019. This trend suggests a shift towards skills-first hiring approaches, emphasizing the importance of investing in skills regardless of education level.
- AI’s workplace impact – boosting efficiency, analyzing data, and personalizing experiences – comes with risks like bias and privacy concerns. Transparency and ethical guidelines are key.
- Family-building benefits play a crucial role in supporting employers’ attraction and retention efforts, emphasizing the importance of recognizing family beyond traditional norms. These benefits can enhance employee well-being and foster a more inclusive workplace.
Diversity, Equity & Inclusion
- According to a Moody’s report, the global workforce is witnessing a surge in the participation of women compared to pre-pandemic, driven by remote and hybrid work arrangements and rising inflation. In Australia, working-age women’s participation has reached 77.2%, while American women are at 73.1% due to challenges like affordable childcare and paid leave.
- Flight Centre Travel Group (FCTG)has successfully increased the representation of women in senior leadership roles, reporting a 26% increase in 2023. Their approach includes listening to employees, addressing specific pain points, and providing benefits and health support for women, including discussions around menopause and fertility.
- Family-building benefits play a crucial role in supporting employers’ attraction and retention efforts, emphasizing the importance of recognizing family beyond traditional norms. These benefits can enhance employee well-being and foster a more inclusive workplace.
- KPMG in Canada is prioritizing DE&I during the return-to-office transition by leveraging its disability inclusion action plan, understanding employee experiences, and creating tailored work arrangements to enhance productivity.
Industry Update
- IBM has informed its marketing and communications employees about job cuts in a roughly seven-minute meeting, the exact number of jobs to be cut was not specified. This move follows IBM’s plan to replace nearly 8,000 jobs with artificial intelligence.
- Canada is on the brink of experiencing a significant financial shift with the potential introduction of open banking. This concept involves granting third-party access to consumers’ banking data, which could lead to new services and increased competition within the financial sector.
- A US government report warns that AI poses an “extinction-level threat” to humanity. Urgent actions are needed to regulate AI development and enhance safety measures.
- ID fraud is projected to constitute 50% of all bank-reported fraud by 2025, based on an analysis of the UK’s largest database of syndicated risk intelligence. In 2023, it already accounted for 45% of adverse contributions. Meanwhile, the potential for financial exclusion fallout could be a critical issue.
- The Canadian Bankers Association (CBA)has introduced a Cyber Security Toolkit specifically designed for newcomers to Canada. This toolkit, developed in collaboration with Get Cyber Safe, aims to educate newcomers about cyber hygiene best practices and help them avoid common scams in the country. All fraud prevention toolkits are accessible in English and French on the CBA’s website: Newcomers | Individuals | Small Businesses | Older Adults
- Fidelity Internationalis implementing a cost-cutting plan by laying off 1,000 workers(approximately 9% of its global workforce) to reduce costs. The layoffs will impact all business lines and regions throughout 2024.
- Expedia Group is planning to lay off 1,500 employees, which amounts to around 9% of its workforce, as part of its ongoing reorganization due to recent organizational and technological transformation.
- Rivian, the electric vehicle (EV) company, is implementing layoffs for its salaried staff, reducing jobs by 10%due to geopolitical uncertainties and pressures.
📜 Featured Articles & Reports 📜
Gartner - 9 Future of Work Trends for 2024
In today's volatile business landscape, HR leaders are navigating talent shortages, technological advancements, and evolving workforce expectations. Here are nine key trends identified by Gartner that are shaping the future of work in 2024:
- Cost-of-Work Crisis: Employees reevaluate the costs of returning to the office, leading to sustained demand for hybrid or remote work options. Organizations must address these concerns by sharing or reducing the total costs of work.
- GenAI Impact: Generative AI (GenAI) will create new job roles and opportunities, transforming various business functions. HR's role includes adapting to these changes, facilitating reskilling, and communicating the impact on employees' roles.
- Four-Day Workweeks: Once considered radical, four-day workweeks are gaining traction as organizations prioritize employee well-being and productivity. HR plays a crucial role in reorganizing work schedules and optimizing productivity.
- Conflict Resolution Skills: With rising ideological tensions among employees, conflict resolution becomes essential for managers to maintain team performance. HR can support managers with training and resources to navigate conflicts effectively.
- GenAI Risks and Rewards: While GenAI offers productivity benefits, its implementation poses governance and quality control challenges. HR should ensure employees are trained to use GenAI effectively and responsibly.
- Skills Over Degrees: Organizations are shifting towards skills-based hiring, bypassing traditional degree requirements to access a broader talent pool. HR's role includes facilitating skill development and apprenticeship programs.
- Climate Change Protection: Climate change impacts the workforce, prompting organizations to offer disaster response plans and support as part of their benefits packages.
- Embedded DEI: Diversity, equity, and inclusion (DEI) initiatives move from standalone programs to integrated aspects of organizational culture and operations. HR collaborates with functional leaders to embed DEI principles into business strategies.
- Career Stereotype Collapse: Atypical career paths become mainstream, challenging traditional talent management strategies. HR adapts by offering flexible work arrangements, promoting expertise over tenure, and facilitating cross-training opportunities.
By addressing these trends, HR leaders can proactively shape their organizations' strategies to meet the evolving needs of the workforce in 2024 and beyond.
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