As we consider the future of hiring, many unknown variables remain: return-to-office mandates, continued global political instability, and interest rate concerns, to name a few. Below, we examine the silver tsunami and other hiring trends that may affect your organization in the coming year.
Silver Tsunami
If you’re unfamiliar with the term, silver tsunami, “generally refers to the large cohort of Americans entering their retirement years as the baby boom generation, born in the years 1946 to 1964, continues to age. The term, considered by some to be ageist and offensive, is used to highlight both the economic opportunities created by an aging population and the challenges it may pose to society.”
Many thought this would mean we’d see baby boomers retiring in record numbers without enough younger workers to backfill all the open roles. However, this has not materialized. According to LendingTree, 22% of adults aged 65 and older are still working, with almost 25% self-employed. This is down slightly from 2022 when it was 22.5%, but up significantly over the past few decades. ‘According to the Pew Research Center, only 11% of retirement-age adults were in the workforce in 1987, half of today’s rate.”
LendingTree also notes that the number of retired people has declined in the past two years by three and a half percent, from 19.8% to 16.2%. They mention that some people are going back to work because they want to, perhaps because they are bored in retirement, and others are returning to work because they need to. For example, inflation has changed their view of how far their savings will go.
Continued Job Growth
According to the US Bureau of Labor Statistics, job growth will continue over the next decade. “The U.S. economy is projected to add 6.7 million jobs from 2023 to 2033, the U.S. Bureau of Labor Statistics (BLS) reported today. Total employment is projected to increase to 174.6 million and grow 0.4 percent annually.” While this is a slower annual growth rate than the past decade, which averaged 1.3% annually, the growth in jobs is constrained by population growth.
Healthcare and computer and mathematical occupations are expected to be among the fastest-growing careers. With the large baby boomer population reaching their golden years, it’s no surprise to see the needs in the healthcare arena. With AI adoption and other new technologies, the same can be said of computer and mathematical roles.
Another industry that expects to see job growth is community and social services. The heightened awareness around mental health is one driver for this industry. “The projected fast growth for community and social service occupations will stem from more individuals seeking assistance for a variety of challenges, such as marriage and family counseling as well as substance abuse counseling and support.”
Generational Diversity
We are at a point where we will see four different generations in the workforce simultaneously: baby boomers, gen-x, millennials, and gen-z all have unique views of working and different expectations of what the workplace should look like. Diversity, equity, and inclusion (DEI) efforts must extend beyond gender and race. Human Resources leaders and the executive team will need to adjust their view of DEI to ensure they are identifying and hiring employees with different backgrounds.
Skills Based Hiring
Instead of looking at education and prior employment as qualifiers for a role, skills-based hiring focuses on a candidate’s knowledge, abilities, experience, and other competencies. According to SHRM, “Skills-based hiring has become increasingly popular amid the recent tight labor market, which is pushing companies to try unorthodox approaches to finding employees. In fact, 73 percent of employers used skills-based hiring last year, up from 56 percent in 2022.”
These are just a few trends we expect to see in the coming year. Now is an excellent time to review your current hiring practices and see if they are aligned with your future needs. Are you prepared for the evolution of today’s workforce? What recruitment strategies are you deploying?
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