Since March 2020, the world’s macroeconomic situation has been unprecedented. At times, this lack of precedent has been positive and resulted in a record-tight labour market, and low unemployment. With interest rates rising, what can workers and job seekers expect in 2023? How will employers be hiring, and what trends can they expect from their workplace? It may not be what you expect.
What do workers want in 2023?
What someone wants from a new job can be very context-dependent. However, when it comes to macroeconomic conditions, like trade deficits or surpluses, recessions, resource shortages or rising interest rates, what people want from new jobs can become more common. Per Indeed’s Job Search Survey, taken place in the second quarter of 2022, the number one thing job seekers want, reported by 31% of respondents, is higher pay. Perhaps spurred by higher costs of living this beat the next response by 11%.
Tied for second and third, 20% of respondents wanted (1) a change or more fruitful career path in a new job and (2) better benefits. After that, there is a steeper drop off in percentage of respondents for the other 7 reasons workers are looking for a new job. Those reasons, in descending order are more flexible schedule, more stable schedule, more belonging in the workplace, a better manager, a shorter commute, their current job is not remote and concern about their current company.
These responses show a mix of the practical and the ideal. It can be inferred that workers want higher pay to deal with cost-of-living increases, such as the increasing mortgage and rent prices resulting from rising interest rates. We all must pay our bills after all.
However, it is also natural to seek enjoyment and fulfillment in work. We see that need materialize in the reason of wanting change or growth in a career path. Salary is important – but it is also not the only thing job seekers consider in finding a new job. Changing lanes to find a career better suited for you is a valid reason for a new job, and the survey results back that up.
What are the labour market trends set for 2023?
Indeed and Glassdoor’s Hiring and Workplace Trends report is a great benchmark to predict what is in store for 2023’s job market. Both companies teamed up, and through the power of data analysis and their economists, found five trends to watch out for:
- There will still be a tight labour market in 2023
- Remote work will continue to be a presence
- With worker wages rising, employers can use benefits package as a powerful tool to attract talent
- Money is important, but workers want happiness and wellness
- Diversity, Equity, and Inclusion are increasingly important values to job seekers.
Unsurprisingly, we see similarities between these trends and the Jobseeker Survey.
Connecting labour market trends to why workers are looking for new jobs
Looking at these trends, we can see connections with the reasons why workers are looking for new jobs. The report states that while the labour market has a chance of loosening up, it will likely be tighter enough in the long term. The conditions of a tight labour market not only raise wages but make it easier to find new jobs, be it the reasons for the job search found on Indeed’s survey or not. A tight labour market can both be an enabler and reason for a job change: the tight labour market allows people to find a job with greater ease than a loose labour market, or because the labour market is tight and there is a greater opportunity, an adventurous worker can opt for change, just because they want to change.
Moreover, we can see that some of the trends match the reasons given in the Indeed Job Search Survey. 9% of workers stated they wanted a new job because theirs was not remote – matching with the forecasted trend of remote work continuing to be a factor. Wanting better benefits was tied for second in Indeed’s survey – which fits nicely beside Indeed and Glassdoor’s report stating that a strong benefits package is a great tool to attract employees.
It’s all connected.
In summation – while reasons for wanting a change in your career can be based on personal desires, there is a feedback loop between the individual desires of workers and macro conditions such as the entire labour market. Sometimes it is hard to see what influences what – but they are connected. Either way, based on worker wants and projects for 2023, job seekers can expect a favourable job market for this year.