The job market is feeling the chill, and some call it the “Great Freeze.” This phase is marked by slow hiring and few layoffs. While many workers stay put, companies are not expanding their teams.
Recent insights from economists suggest a mix of caution and uncertainty. Despite the economy’s stability, businesses are hesitant to let go of skilled workers. Factors like trade worries and economic shifts are making companies wary about hiring new talent. As a result, many organizations choose to retain current employees instead of expanding.
Nicole Bachaud, an economist at ZipRecruiter, explains, “Employers and job seekers are playing a waiting game.” This hesitation has created a workforce climate that poses challenges for job seekers. In August, there were roughly 7.4 million jobless people but only 7.2 million job openings. This mismatch means the competition for jobs is still tight.
Several experts, including Daniel Zhao, chief economist at Glassdoor, note that “labor hoarding” plays a role in why companies are not laying off workers. Businesses fear repeating the staffing crises they faced during the pandemic. Keeping employees on board now, even if demand drops slightly, gives them a buffer for the future.
On the flip side, workers may find fewer opportunities for advancement. Bachaud points out that many employees might need to settle for roles that don’t fit their skills or pay expectations.
In a recent ZipRecruiter survey, 63% of companies planned to hire more in the next year, down from 76% a year earlier. This caution reflects the ongoing uncertainties in the economy.
So, what does this mean for those on the job hunt? Zhao suggests that while job security might be higher, the lack of turnover limits chances for career growth. Individuals might feel stuck in their current roles, unable to negotiate raises or seek new opportunities.
Upskilling or gaining new certifications could be a wise strategy for workers. This not only enhances their value within their current job but also prepares them for future opportunities.
In short, while the current job market offers some security, the cautious approach from companies comes with limitations for job seekers looking for growth and new prospects.
For more insights, check out the latest report on labor trends from ZipRecruiter.
Source link
job opening,worker,business insider,daniel zhao,company,low hiring,job market,employer,nicole bachaud,lack,labor hoarding,year,stephen juneau,ziprecruiter,great freeze
