The labor market has been forever reshaped by the COVID pandemic. While a bleak economic outlook, cost of living crisis, and political turmoil have been grabbing the headlines around the world, fundamental changes have continued to take place and the world of work isn’t going back to the way things were before.
Demographic trends mean countries like the US, Canada, the UK, France, Germany, and Japan will experience an ongoing shortage of workers as their populations are aging. Without sustained immigration, an increase in labor productivity, or a focus on attracting workers on the sidelines of the labor force, these countries simply won’t have enough workers to fill long-term demand for years to come.
COVID didn’t reverse the long-run demographic trends that will drive tight labor markets for the next decade, but it did accelerate changes to the workplace. Perhaps most importantly, it helped workers wake up to the fact that they have the leverage to demand change in the workplace—and left many employers at a loss about how to deal with this new dynamic.
Together, using data-driven analysis, Indeed and Glassdoor economists share and examine five trends of the modern workplace that will reshape the labor market in the long-term. The Indeed Hiring Lab — an international team of economists and researchers whose insights drive the global labor market conversation—along with Glassdoor Economic Research team, whose deep understanding draws from a rich database of millions of employee reviews, salaries, and conversations — worked together to create their first-ever joint Labor Market Trends Report. The economists at both organizations explored the current state of the workplace and what it means for the labor market of tomorrow. The goal of this report is to support employers as they navigate this watershed moment in history.
The trends identified will persist beyond the near-term fluctuations in the business cycle, and the companies that focus on them will ensure their workplace survives, even thrives, into the future.
The top long-term labor market trends from Indeed & Glassdoor include:
- Demographic shifts and aging populations mean hiring will remain challenging for years, as labor supply issues will remain.
- Remote work, which was a necessity during the pandemic, will continue to thrive.
- What employees want is changing, including their compensation and benefits needs, with inflation playing a key role.
- Company culture is valuable in both attracting and retaining employees, as a way for employers to further distinguish themselves from their competitors.
- Diversity, equity, and inclusion will remain top of mind, as employees continue to deeply care about these initiatives, as well as the progress employers are making, or not.
The full report is available for download below.