BLS Analysis for Recruiters August 2023 – 4 Articles

Bob Marshall’s August 2023 BLS Analysis for Recruiters; 9/1/23

The 4 August Articles…

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US Economic Growth Beats Expectations in Q2

Daily News, July 27, 2023

US real gross domestic product grew faster than anticipated, increasing at an annual rate

Job Seekers Getting Burned Out as Search Drags On, Insight Global Survey finds

Daily News, August 25, 2023

Recently unemployed US job seekers in the US are experiencing a massive case of job-hunt burnout amid prolonged searches without any offers, according to staffing firm Insight Global.

More than half of recently unemployed adults surveyed, 55%, say they’ve been searching for a new job for so long that they are “completely burnt out,” according to the Insight Global survey. Recently unemployed workers also say they have applied to an average of 30 jobs and have only received an average of four callbacks or responses.

“It’s no wonder that so many unemployed Americans are feeling unmotivated — between several years of a volatile job market, headcount reductions, budget cuts, hiring freezes and a total overhaul of the way companies are running their businesses, it can feel downright impossible to get back on track,” Insight Global CEO Bert Bean said in a press release.

Gen Z is getting hit the hardest with 66% of this cohort saying they’re burnt out, according to the survey. That’s the highest percentage of any generation.

Some workers are so depleted by the job search that they’re taking other steps to make or save money, according to Insight Global’s survey:

  • 43% said they feel there is no shame or prefer to live at home with their parents.
  • The same percentage, 43%, said they would rather create an Etsy business or resell thrifted items than send out another blast of résumés.
  • More than a third, 36%, would rather drive for a delivery or rideshare service than continue what appears to be a fruitless search.
  • Some Gen Z job seekers — 44% — would rather get a “sugar daddy” or “sugar mommy.”

Insight Global’s survey took place in July and included 501 recently unemployed adults who had been unemployed for 12 months or less and who were actively seeking employment.

Quarter of IT Professionals may leave Current Jobs within next 6 Months

Daily News, August 16. 2023

A quarter of IT professionals are actively considering leaving their current jobs within the next 6 months, potentially costing US companies upward of $145,000,000,000, according to a report by Ivanti, a provider of asset management software based in San Jose, California. 

The report also found IT professionals are 1.4 times more likely to disengage and “quiet quit” their jobs when compared to other knowledge workers. 

Challenges faced by IT professionals and security experts include: 

  • 73% increase in workloads due to hybrid or remote working, leading to one in four reporting burnout. 
  • Disconnection from colleagues, noted by 23% of IT professionals and security experts and 17% of office workers.  
  • A 2.5-fold likelihood of extended work hours displayed by IT professionals when working remotely. 
  • Among the 25% considering quitting their jobs, 31% report their mental health is suffering.   

“In fact, organizations continue to struggle to retain IT talent (a decades-long problem) — and it is costing them productivity gains and affecting their bottom line,” Ivanti CEO Jeff Abbott said in a press release. “Companies must embrace automation to alleviate IT workloads, ultimately fostering a destination environment that retains premier IT professionals and cultivates a competitive advantage.” 

The report also noted that IT talent disengagement, quiet quitting and turnover are not a result of remote work but stem from the lack of resources, tools and support available to these employees.  

To address this growing crisis, the report outlines the following six actionable strategies for businesses to consider: 

  • Diagnose IT work-life pressure points using internal surveys and one-on-one interactions to gauge employee mindset.  
  • Inventory tech-specific experiences, with a focus on dissatisfaction among IT professionals with the tools used for remote work by tracking digital employee experience.  
  • Prioritize automation for IT workflows, freeing up IT talent for more valuable projects.
  • Adopt proactive solutions such as AI-powered “self-healing” systems to minimize help desk tickets and to resolve workplace technology slowdowns.  
  • Give employees choices about how they work by offering IT talent the chance to define their work style, thereby boosting IT recruitment and retention. 
  • Foster in-person connection for IT teams through face-to-face meetings, building trust and camaraderie.  

The report is based on responses from 1,800 IT professionals and C-level executives across the globe. 

Economists Upgrade Forecast for GDP, Payroll Growth

Daily News, August 11, 2023

Economists indicate a growing sense of optimism regarding the trajectory of the US economy over the next three quarters, according to the Philadelphia Federal Reserve’s Survey of Professional Forecasters report for the third quarter, released Friday. The panel now projects real GDP to grow at an annual rate of 1.9% this quarter, a notable upswing from the 0.6% increase forecast back in May.  

The forecasters also upgraded their outlook for the following two quarters. They now expect GDP growth of 1.4% in the fourth quarter, up from their prediction in February of flat growth; their outlook edged upward to 1.1% growth for the first quarter of next year from 1.0% forecast in the prior survey. 

In addition, they now expect GDP to expand at an annual rate of 2.1% in 2023 and 1.3% in 2024, up from their previous predictions of 1.3% and 1.0%, respectively.  

The panel of 37 economists polled for the report also revised upward their estimate for job growth over the next four quarters, with projections for the average annual level of nonfarm payroll employment suggesting job gains at a monthly rate of 288,600 in 2023 and 94,800 in 2024. In addition, the panelists now anticipate unemployment rates of 3.6% in the third quarter of 2023 and 3.7% in the fourth quarter, down from estimates 3.8% and 4.0%, respectively, in the May survey.

IT Employment Remains Flat in July amid Recession Fears: TechServe Alliance

Daily News, August 10, 2023

The number of IT jobs in the US was essentially unchanged in July compared to June, according to analysis by the TechServe Alliance, a trade association representing the IT and engineering staffing and solutions industry. 

After steeper declines in IT employment during the second half of last year through the first half of this year, employment levels have stabilized the last three months — coming in effectively flat in both June and July, according to TechServe Alliance CEO Mark Roberts. 

“While many employers shed jobs as part of their effort to correct over-hiring during the pandemic and other employers pulled back on hiring amid the fear of recession — a recession that has yet to arrive, we appear to be poised for a shift in momentum,” Roberts said in a press release. 

IT employment edged down by 1,700 jobs in July from June — representing a decline of 0.03% — to a total of approximately 5,300,000 jobs

On a year-over-year basis, IT employment was down by 118,400 jobs in July, a decrease of 2.17%. 

Roberts noted that while caution still seems to be the dominant watchword across the business community, there are regions and sectors that continue to hire: Computer systems and design services, management and technical consulting services and data processing, hosting and related services — sub-sectors that employ large numbers of IT professionals — all posted growth in July.

“With pent-up demand amid an unemployment rate of only 2.4% in [the second quarter], we are going to see a return to the full-fledged war for IT talent once employers regain confidence in the economy,” he said. 

TechServe Alliance also tracks engineering employment. Engineering jobs edged upward by 0.18%, an increase of 5,000 engineering workers, in July compared to June to nearly 2,800,000 jobs. Engineering employment rose by 2.49% on a year-over-year basis, reflecting an increase of 68,200 jobs.