Those seeking employment want to choose a path that will lead to lucrative opportunities, not only for now but for years (or even decades!) into the future. To do so, they need to know what kinds of jobs will provide those opportunities.
Several economic trends are expected to affect job opportunities, with some more positive than others. Let’s take a look at some of them:
COVID-19
The COVID-19 pandemic has exacerbated many of the economic challenges facing recent college graduates. Job prospects for those with bachelor’s degrees have been more severely impacted by the pandemic than their peers who have lower education levels. This is partly because jobs that require a college degree are more protected from automation and they pay better.
Furthermore, flight cancellations and restrictions have halted international travel, limiting the number of potential new hires. This has disproportionately affected higher-wage industries like travel and tourism that hire seasonal workers during the summer and fall.
Even if the economy recovers from its current slump, many recent graduates will continue to face poor job opportunities in the near future. This is especially true for black and Hispanic graduates who were already having a harder time finding work than white workers before the pandemic. Our analysis also shows that the official unemployment rate understates how many people have been deprived of paid work because of the pandemic.
The Great Resignation
Throughout 2021, a wave of resignations swept the US workforce. From senior economists on LinkedIn to first-time fast food workers in Tik Tok videos, workers across the country were expressing their dissatisfaction with their jobs news by leaving them.
Typically, the rate of quitting decreases when economic conditions are tough. But this “Great Resignation” was anything but typical.
Whether it was dissatisfaction with their pay or their workplace environment, many employees were ready to make a change in their careers. This was a rare moment of worker power that could lead to improved job conditions for the millions of workers who quit their jobs during this period. However, this wave of resignations appears to be ending. In fact, the quits rate has dropped back to its immediate pre-pandemic levels in some sectors, such as retail and hospitality. This trend is important for recruiters to understand so they can create attractive career opportunities that encourage workers to stay with their employers.
Inflation
Inflation is a complex subject with many causes and effects. A little inflation can be an indicator of a healthy economy but a lot of it can lead to economic problems such as widespread loan defaults and a banking crisis.
When prices increase too quickly it can cause a recession. This is because consumers start to cut their spending, reducing demand for goods and services. Businesses then respond by limiting their own production or raising prices, creating shortages and price-gouging.
High inflation can also reduce job opportunities as companies find it hard to afford pay increases. This can lead to companies reducing their workforces or replacing workers with cheaper new hires. Job seekers should keep an eye on inflation and wage growth to know how much negotiating leverage they have at the bargaining table. However, many economists are optimistic that inflation and energy prices will stabilize soon. They expect that the US can return to a pre-pandemic normal in not too long.
The Self-Employed
Self-employment can offer a great deal of freedom, variety and creativity, as well as the satisfaction of building your own business. However, it also brings high employment risk and a volatile income. Additionally, you are responsible for all losses in your business.
Those who work for themselves may be incorporated as sole proprietorships, independent contractors or partnerships. Self-employed workers are typically highly skilled in a particular field. This can include writers, artists, various tradespeople, traders/investors and lawyers.
Even though the economy is rebounding, many jobs haven’t returned as quickly as expected. This is due to many employers still having worker shortages after a number of employees left or were laid off during the pandemic. Additionally, higher-wage industries are experiencing slower job growth than lower-wage industries. This is because low-wage workers have a much harder time finding new jobs when they need to, and this makes it difficult for them to stay with their current employer.