Category: Talent & Market Insights

The Future of Early Careers: Preparing Our Children for Jobs That Don’t Exist Yet 

Posted on by akessler

By James Chorley, Talent Solutions Director 

My children are about eight to nine years away from entering the world of work. As a parent, it’s both exciting and daunting to think about the future careers of my children. With rapid advancements in technology and shifts in the global economy, the job market of today will undoubtedly look very different in 10 years when my kids are entering the workforce.  

While automation will displace many jobs, it will also create new jobs, generating significant benefits for businesses and economies by lifting productivity and economic growth. According to the World Economic Forum’s Future of Jobs Report 2025, by 2030, the creation of 170 million new jobs (14% of today’s employment), offset by the displacement of 92 million current jobs (8%), will result in net growth of 78 million jobs (7%). 

For organisations with early careers programmes, understanding these shifts is crucial. The pipeline of emerging talent will need different skills, experiences and expectations than previous generations in order to have the capabilities necessary drive organisational success in the coming decades. Here are some key insights into how the changing job landscape will impact early careers programmes, the types of roles that will emerge and how to prepare the next generation of talent. 

Jobs That Might Disappear 

As technology continues to evolve, several traditional roles are projected to decline significantly: 

  • Postal Workers: The rise of digital communication methods and automated sorting systems are already reducing the reliance on traditional postal services. The World Economic Forum identifies Postal Service Clerks among the fastest-declining roles in the job market. 
  • Print Journalists: The decline of print media and the shift towards digital news consumption has led to fewer opportunities for print journalists, with many news outlets now digital-first or entirely online. 
  • Community Banking: The increase in online banking, mobile banking apps and ATMs has reduced the need for in-person bank tellers. Bank Tellers are among the fastest-declining roles globally. 
  • Travel Agents: Online travel booking platforms and AI-driven travel assistants are making traditional travel agent roles less common. 
  • Taxi Drivers: The rise of ride-sharing apps like Uber and Lyft, combined with the development of autonomous vehicles, could significantly reduce the demand for traditional taxi drivers. 
  • Telemarketers & Customer Service Reps: AI-driven customer service and sales platforms, along with stricter regulations on telemarketing, are reducing the need for human telemarketers and customer service workers, often a common first job for many young professionals. 
  • Librarians: Digital libraries and online information resources are diminishing the need for traditional librarian roles, though there will still be a need for digital information specialists. 
  • Factory and Assembly Line Workers: Robotics and advanced manufacturing technologies are increasingly handling tasks that once provided steady employment for those entering the workforce without higher education. 
  • Data Entry Clerks: The World Economic Forum lists Data Entry Clerks among the jobs seeing the largest decline due to automation and AI advancements. 
  • Retail Cashiers: The rise of e-commerce and self-service kiosks in retail stores are diminishing these roles, which have historically provided flexible employment for students and recent graduates. 

Whilst some of these roles may not be considered ‘career roles’, they are an important step on the work ladder for early careers talent. Before I found my feet and whilst still deciding what I wanted to do, I had a number of temp roles doing data entry, customer service and telemarketing. Declining numbers in these roles that have historically served as steppingstones for early careers talent could have significant impact on early careers employees and employers. 

Impact on Early Careers Programmes 

The decline in these traditional entry-level roles presents significant challenges for early careers recruitment strategies: 

  • Shrinking Entry Points: Many traditional entry-level positions for graduates and school leavers are disappearing. This means fewer natural entry points into organisations, requiring companies to create more structured early careers pathways. 
  • Skills Gap Widening: As routine tasks become automated, the skills gap between education and employment is growing. Entry-level roles increasingly require more advanced technical skills and digital literacy from day one. 
  • Higher Expectations for Early Talent: With fewer administrative or process-driven roles available, early careers talent is expected to add value more quickly, often needing to demonstrate complex problem-solving and critical thinking skills immediately. 
  • Reimagining Work Experience: Companies must rethink work experience, internships and placement years to provide meaningful exposure to emerging technologies and future-focused skills that automation cannot easily replace. 
  • Increased Competition: As traditional entry points decrease, competition for remaining early careers opportunities intensifies, making employer branding and candidate experience more critical than ever. 

To address these challenges, early careers programmes must evolve. Talent acquisition leaders should consider creating rotational experiences that expose emerging talent to a variety of business functions, developing accelerated digital upskilling programmes, and establishing mentorship opportunities that help bridge the experience gap. 

Jobs That Will Significantly Change for Early Careers Talent 

According to McKinsey Global Institute, at least 30% of work activities that could be automated for about 60% of occupations. Rather than complete displacement, many entry-level and early career roles will undergo significant transformation. 

  • Junior Healthcare Professionals: The integration of telemedicine, AI diagnostics, and wearable health technology are changing how healthcare is delivered. Early careers talent will need to be comfortable with digital patient management systems and telehealth platforms from day one.  
  • Teachers and Educators: The rise of online education, virtual classrooms, and AI-driven personalised learning experiences are transforming teaching. New educators will need to be proficient in digital tools and platforms, incorporating technology into their teaching methods and focusing on facilitating learning rather than just delivering knowledge. 
  • Manufacturing and Production Workers: Technological advancements in AI, robotics, and automation will drive both job creation and decline, with manufacturing roles evolving to focus more on overseeing and maintaining automated systems. Early careers talent in this sector will need skills in robotics, programming and systems management rather than traditional manufacturing processes. 
  • Financial Graduates: AI and advanced analytics will handle much of the data processing and routine analysis that junior finance professionals typically managed. Early careers talent will need to focus on interpreting data and providing strategic insights rather than data gathering. The World Economic Forum notes that Fintech Engineers are among the fastest-growing jobs in percentage terms, representing a shift in early financial careers. 
  • Supply Chain Coordinators: With the rapid expansion of e-commerce, warehousing jobs have grown 61% in the last decade. At warehouses, depots, and logistics centres throughout the supply chain, there is a growing need for human workers with the skillsets necessary to manage a more complex, interconnected and tech-enabled supply chain.  

These changes highlight the increasing importance of digital literacy, adaptability and continuous learning for early careers talent. The traditional learning curve for new graduates is getting steeper, with expectations to contribute meaningfully to technology-driven processes from the beginning of their careers. 

Emerging Early Career Opportunities 

Much as technologies of the past have done, automation will create new entry-level occupations that do not exist today. Here are some promising examples of future job opportunities for early careers talent: 

  • AI and Machine Learning Specialists: According to the World Economic Forum, AI and Machine Learning Specialists are among the fastest-growing roles. Early careers talent looking to enter these professions need a strong background in computer science, programming, statistics and data analysis. Companies are increasingly creating graduate pathways specifically for these roles. 
  • Cybersecurity Analysts: The World Economic Forum ranks networks and cybersecurity among the top three fastest-growing skills. Entry-level roles in this field are expanding as organisations build security teams to protect expanding digital infrastructure. Early careers talent should focus on network security, ethical hacking, risk management and security compliance. 
  • Sustainability and Environmental Specialists: With 47% of employers expecting climate-change mitigation to transform their business in the next five years, organisations are creating early careers paths in sustainability. Entry-level roles supporting renewable energy engineers and environmental specialists represent growing opportunities for graduates with relevant knowledge. 
  • Data Analysts and Data Scientists: Big Data Specialists are among the fastest-growing jobs in percentage terms. Early careers programmes in this area are expanding rapidly, seeking talent with skills in data mining, statistical analysis, programming and data visualisation. 
  • Remote Work Support Specialists: According to the World Economic Forum, 83% of employers plan to provide more opportunities to work remotely, creating significant demand for professionals who can support distributed workforces. These roles represent new entry points for early careers talent with strong organisational skills and digital communication tools proficiency. 
  • Health and Wellness Coaches: Supporting employee health and well-being is becoming a strategic priority, with 64% of employers identifying it as key for talent attraction. Early careers talent with knowledge in nutrition, fitness, mental health awareness and coaching may find entry-level opportunities across sectors. 
  • Robotics Engineers: With 58% of employers expecting robotics to transform their business by 2030, early careers pathways are emerging for talent with skills in mechanical engineering, electronics, and programming. Graduate schemes specifically focused on automation and robotics are becoming more common. 
  • Virtual Reality (VR) and Augmented Reality (AR) Developers: LinkedIn data shows Game Designers and Game Developers grew by 58% and 40% respectively as the UK games sector hit record size during the pandemic. New entry-level positions for those with skills in 3D modelling, design and user experience are emerging. These roles often don’t require extensive experience, making them accessible to recent graduates. 
  • Sustainable Agriculture Technicians: The focus on climate change adaptation is driving innovation in food production systems, creating entry-level roles in agricultural technology. These positions offer opportunities for graduates interested in agricultural science, hydroponics, and sustainable practices.  
  • Blockchain Developers: Financial institutions and technology companies are developing entry-level pathways for those with knowledge of blockchain technologies. Early understanding of cryptography, programming, and distributed ledger technology can position graduates for these emerging roles. 
  • Drone Operators and Technicians: Industries from construction to energy are creating new positions to support drone operations, data collection and analysis. These roles provide early career opportunities in a growing field without requiring extensive experience. 
  • Genomic Counsellors: The growth in healthcare specialisations will continue to evolve as healthcare becomes more technology driven. Genetics, biology, and ethics will be areas of entry for early careers talent. 

For early careers programmes, these emerging roles represent opportunities to create specialised graduate pathways that attract top talent in competitive fields. Talent acquisition leaders should consider developing targeted recruitment campaigns that highlight these future-focused opportunities to differentiate their employer brand. 

Essential Skills for Early Careers Success 

As occupations evolve alongside increasingly capable machines, early careers talent will need to develop a range of skills that may not be emphasised in traditional education. For talent acquisition leaders, understanding these skills is crucial for designing effective assessment and development programmes: 

  • Digital Literacy: Beyond basic computer skills, early careers talent needs a strong understanding of digital tools, platforms, and concepts. The WEF report identifies AI and big data as the top fastest-growing skills, followed by networks and cybersecurity. Early careers programmes should incorporate digital assessments and training from day one. 
  • Critical Thinking and Problem-Solving: With routine tasks automated, analytical thinking remains the most sought-after core skill among employers, with seven out of 10 companies considering it essential. Assessment centres and selection processes should prioritise these capabilities over technical knowledge that can be taught. 
  • Adaptability and Lifelong Learning: The WEF report highlights that workers can expect 39% of their existing skill sets to become outdated by 2030. Early careers talent with demonstrated learning agility and curiosity will be better positioned to evolve with their roles. Graduate programmes should emphasise continuous development rather than fixed skill sets. 
  • Emotional Intelligence: As automation increases, uniquely human skills such as empathy, communication, and teamwork become more valuable. The WEF identifies resilience, flexibility, and leadership as among the most sought-after core skills. Early careers development should focus on these interpersonal capabilities alongside technical training. 
  • Environmental Awareness: Understanding sustainability issues is increasingly important across sectors. Environmental stewardship has entered the list of top 10 fastest-growing skills for the first time, driven by climate-change mitigation trends. Early careers programmes should incorporate sustainability awareness regardless of function. 

For talent acquisition leaders, these skill requirements necessitate a shift in assessment approaches. Moving away from traditional competency frameworks toward evaluating learning potential, adaptability, and critical thinking will be essential for identifying successful early careers talent. 

Reshaping Education & Early Careers Development 

McKinsey’s research suggests that by 2030, 75 million to 375 million workers globally will need to switch occupational categories. This has profound implications for how organisations approach early careers development and partner with educational institutions: 

  • STEM Subjects: Science, Technology, Engineering, and Mathematics subjects provide the foundation for many future roles. Early careers programmes should consider developing partnerships with universities to influence curriculum design and create clear pathways from STEM degrees into organisations. 
  • Interdisciplinary Approaches: LinkedIn data shows high demand for roles requiring a mix of technical and human skills. Graduate schemes that rotate early careers talent through both technical and commercial functions can develop this valuable blend of capabilities. 
  • Environmental Focus: With sustainability becoming business-critical, early careers programmes should incorporate green skills development regardless of function. This could include sustainability projects, environmental impact assessments, or dedicated learning modules. 
  • Ethics Understanding: As technology raises complex questions, early careers talent needs to understand ethical implications of business decisions. Development programmes should include ethical case studies and discussions, particularly for those working with advanced technologies. 
  • Accelerated Digital Upskilling: Rather than assuming tech and digital skills will develop over time, organisations should front-load technical training in early careers programmes to enable faster productivity and contribution. 

For talent acquisition leaders, this means reimagining traditional graduate development approaches. Annual intake models may give way to more frequent, specialised recruitment aligned to emerging skill needs. Development pathways will need to become more personalised, with greater emphasis on continuous learning rather than prescribed programmes. 

Preparing Emerging Talent for the Future 

The landscape for early careers talent is changing dramatically. Traditional entry-level roles are disappearing or transforming, while entirely new career paths are emerging. For talent acquisition leaders, this presents both challenges and opportunities to reimagine how organisations attract, develop and retain emerging talent. 

Success in this evolving environment requires a fundamental shift in approach—moving from standardised graduate programmes toward more agile, personalised development journeys that emphasise continuous learning and adaptability. Organisations that create clear pathways into emerging fields, develop innovative assessment approaches, and build strong educational partnerships will gain significant competitive advantage in the talent market. 

For the next generation entering the workforce, including our children, these changes promise exciting opportunities to build careers that may look very different from those that came before—careers that may not even exist yet. Our role as talent acquisition leaders is to help them navigate this uncertainty, providing early careers programmes that prepare both emerging talent and our organisations for a rapidly changing future. 

When it comes to advising my kids on their future and the subjects they want to follow, it’s not straightforward. But as my Auntie once told me, you’ll be surprised just how much you will learn from your children. Kids are curious, and they aren’t stuck in historical thinking and norms. Our job is to guide them and encourage them to stay curious as we watch the world change! 

PeopleScout Jobs Report Analysis – February 2025

Posted on by lloftus

U.S. employers added 151,000 jobs in February, an increase from January’s downward revision of 125,000 but below the 170,000 forecast. The unemployment rate edged up to 4.1%, its highest level since late 2023, while hourly wages rose 4.0% year-over-year. The labor force participation rate declined to 62.4%, its lowest level in over a year. Job gains were concentrated in healthcare, financial activities and transportation and warehousing, while retail, leisure and hospitality and government saw declines. February marks the 50th consecutive month of job growth, though at a more moderate pace. 

The Numbers 

151,000: U.S. employers added 151,000 jobs in February. 

4.1%: The unemployment rate rose slightly to 4.1%. 

4.0%: Wages rose 4.0 % over the past year. 

The Good  

The U.S. economy maintained a steady pace of job growth in February, with employers adding 151,000 jobs—an improvement over January’s revised figure of 125,000 and marking the 50th consecutive month of job growth. While the increase fell short of economists’ expectations of 170,000, it still signals steady hiring. Healthcare remained a key driver of job growth, adding 52,000 positions, in line with its 12-month average. Other sectors contributing to job gains included financial activities (+21,000), transportation and warehousing (+18,000) and social assistance (+11,000). Wage growth remained solid, with average hourly earnings rising 4.0% year-over-year. 

The Bad  

While job growth remained, signs of softening emerged in February’s report. The unemployment rate ticked up to 4.1%, its highest level since late 2023, and the labor force participation rate declined to 62.4%, its lowest level in over a year. The labor force shrank by 385,000 workers, and the household survey painted an even weaker picture, showing a drop of 588,000 employed individuals. Additionally, the number of workers holding part-time positions but seeking full-time work surged by 460,000 to 4.9 million. Retail saw a loss of 6,000 jobs, while the leisure and hospitality sector declined by 16,000, with a notable loss (-27,500) in bars and restaurants. 

The Unknown  

February’s report raises questions about the trajectory of the labor market in the months ahead. While job creation remains positive, the dramatic decline in household employment and rising underemployment suggest potential weakness beneath the surface. The Federal Reserve is closely monitoring these developments as it considers the timing of interest rate cuts. Uncertainty remains high as market volatility has increased in recent weeks, and consumer sentiment surveys have shown concerning drops in confidence.  

Conclusion  

The February 2025 jobs report presents a mixed picture of the U.S. labor market. While job gains persisted, the increase in unemployment and decline in labor force participation raise concerns about underlying labor market strength. For now, the labor market remains fundamentally healthy by historical standards, with unemployment still near record lows. The coming months will be crucial in determining whether the labor market maintains its resilience or enters a more pronounced slowdown. 

PeopleScout Jobs Report Analysis – January 2025

Posted on by lloftus

U.S. employers added 143,000 jobs in January, falling short of the predicted 170,000. Hourly wages are up 4.1% and the unemployment rate dropped slightly to 4.0%, beating forecasts and remaining near historic lows. The BLS also revised the monthly pace of job gains for 2024 to an average of 166,000, down from the previous estimate of 186,000. While January’s numbers show a hiring slow down from December, the gains are not far off the adjusted 2024 monthly average. 

The Numbers 

  • 143,000: U.S. employers added 143,000 jobs in January. 
  • 4.0%: The unemployment rate edged down to 4.0%. 
  • 4.1%: Wages rose 4.1 % over the past year. 

The Good  

The U.S. labor market kicked off 2025 with modest job growth, adding 143,000 jobs in January. While this fell short of economists’ expectations, the unemployment rate edged down to 4.0%, marking its lowest level since May 2024, and wage growth remained strong. Job gains were concentrated in familiar strongholds: Healthcare (+44,000), Retail (+34,000) and Government (+32,000), continuing trends from late 2024. Additionally, the labor force participation rate for prime-age workers (25-54) ticked up to 83.5%, driven by increased male participation. 

The Bad  

January’s jobs report suggests that the labor market may be losing momentum. The 143,000 jobs added represent a notable step down from December’s upwardly revised 307,000 gain. Moreover, annual revisions to 2024 data revealed that job growth was weaker than initially estimated, with the Labor Department revising down its job count by 589,000 for the 12 months ending in March 2024. Mining and oil and gas extraction lost 8,000 jobs, and hiring remains sluggish across several industries outside of Healthcare, Social Assistance and Government. Despite strong wage growth, broader labor market churn remains low, suggesting that businesses are proceeding with hiring decisions cautiously.  

The Unknown  

This report leaves several key questions unanswered. While the slowdown in job creation may indicate a cooling labor market, strong wage growth and a historically low unemployment rate suggest resilience. How will the Federal Reserve interpret these mixed signals? With their next meeting in March, there’s still time for additional data—including another jobs report and inflation readings—to shape its decision on interest rates. Investors have been anticipating potential rate cuts in the first half of the year, but January’s wage gains could lead the Fed to take a wait-and-see approach. Additionally, new administration policies—including proposed cuts to federal payrolls and immigration restrictions—could significantly reshape labor market dynamics in the months ahead.  

Conclusion  

The January 2025 jobs report suggests a labor market that is stable but slowing. While job growth remains positive, the pace has decelerated, and downward revisions to prior months highlight a weaker hiring environment than previously believed. Still, with unemployment at just 4.0% and wages continuing to rise, the labor market remains strong by historical standards. The market appears to be transitioning from post-pandemic dynamics to a more measured growth pattern, though policy uncertainties could significantly impact this trajectory in the months ahead. 

Affinix® Analytics

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PeopleScout Jobs Report Analysis – December 2024

Posted on by lloftus

U.S. employers added 256,000 jobs last month, an increase over November’s gains of 212,000 and exceeding the 155,000 December forecast. The unemployment rate was expected to stay at 4.2% but dropped slightly to 4.1% in December and hourly wages are up 3.9% year-over-year. The number of jobs added in the prior two months were both revised—October numbers were revised up by 7,000 from 36,000 to 43,000; while November was revised down by 15,000 from 227,000 to 212,000, making the net gain 8,000 fewer jobs than originally reported. December’s strong report likely confirms the market’s expectations that the Fed will keep rates steady at its next meeting in January.  

The Numbers 

  • 256,000: U.S. employers added 256,000 jobs in December. 
  • 4.1%: The unemployment rate edged down to 4.1%. 
  • 3.9%: Wages rose 3.9% over the past year. 

The Good  

December closed out 2024 with surprisingly strong job growth, adding 256,000 jobs, significantly exceeding economists’ expectations of 155,000. The gains were broad-based, with particularly robust growth in healthcare (46,000), leisure and hospitality (43,000) and retail (43,000)—a notable turnaround for retail after November’s losses. The unemployment rate ticked down to 4.1%, and the broader measure of unemployment, which includes part-time workers seeking full-time work, improved to 7.5%. In a particularly encouraging sign, long-term unemployment declined for the first time in months, dropping to 1.55 million. 

The Bad  

Despite the positive headline numbers, labor force participation among prime-age workers (25-54) dipped to 83.4%, now half a percentage point below its peak from earlier in the year. Manufacturing continues to show weakness outside of specific sectors, and the duration of unemployment, while improving for the long-term unemployed, remains elevated at 23.7 weeks. And, wage growth, while solid at 3.9% year-over-year, came in slightly below expectations. 

The Unknown  

The December report raises questions about the Federal Reserve’s next move. Will the surprisingly strong job growth deter them from further interest rate cuts in 2025? The Fed will likely be watching inflation data closely in the coming months to assess whether the robust labor market is contributing to sustained price increases. Key questions remain about whether this surge represents a new trend or a temporary boost, and whether the job market can maintain its resilience in the face of potential policy changes. 

Conclusion  

The December 2024 jobs report delivered a strong finish to a year marked by uncertainty and volatility. The strong job gains, declining unemployment rate and improvement in long-term unemployment suggest the economy maintained significant momentum despite higher interest rates. However, some underlying trends, such as declining labor force participation and persistent wage growth, warrant attention. The Federal Reserve faces a challenging balancing act as it navigates a complex economic landscape in the year ahead. 

Social Value in Action: Flight for the Community

Posted on by akessler

By Thomas Mason-Paley, Bid Director

‘Is there a social value question? What’s the weighting?’ In my role as Bid Director, I come across this in almost every pitch invitation.

For the uninitiated, almost all formal tenders now ask what a bidder will do, over and above the contract, to help support local communities, disadvantaged groups or the population at large.

To be honest, it gives me mixed feelings. In theory, it is important that businesses give back in meaningful ways, especially those receiving money from the public purse. Through collective efforts, combining the reach of the public sector with the skills of the private sector, we can significantly improve lives, and in turn, make society safer, richer and better for all.

However, I also understand the hurdles; not every company has the resources to make a real impact. For example, does an SME business, with few staff, really possess the time, money and resources to run employability workshops or CV writing webinars? When a client asks for time, resources and money from a provider, it runs the risk of social value becoming a ‘necessary evil’ which delivers poor returns for all, rather than a genuine force for good.

“Effective philanthropy requires a lot of time and creativity – the same kind of focus and skills that building a business required.”

– Bill Gates

It’s easy to complain and point out challenges. Anyone can do that; finding solutions is much harder. I believe PeopleScout and Heathrow Employment and Skills Academy provide a great example of combining resources, applying creativity and utilising key skills to deliver social good that benefits all.

The two organisations work in genuine collaboration to help Heathrow’s wider community find meaningful and gainful employment across the whole of the Airport, from shops and restaurants through to engineering and mechanical departments.

Heathrow, and its business partners, advertise available roles via the Heathrow Employment and Skills Academy website. PeopleScout screens candidates to ensure suitability and provide more insight into specific roles to ensure candidates fully understand responsibilities and would be comfortable working within the environment. We then book interviews on their behalf. Just as importantly, PeopleScout provides these candidates with advice and guidance prior to interviews, ensuring they are ready, motivated and equipped to increase their chance to succeed in the recruitment process. This personal and supportive service is most important for people who have been out of work for a long time or who may be making their first ever application for paid employment.

We also work with the Heathrow Employment and Skills Academy to deliver careers and essential skills workshops, employment webinars and community drop-in sessions. These are not projects which are ‘outsourced’ to PeopleScout, they are truly collaborative events that enable us to support the local community, with shared resources and shared goals, utilising the skills of both PeopleScout and Heathrow teams to maximum effect.

We have also re-written advertising content to ensure it is fully inclusive and appeals to different demographics, thereby ensuring no group feels hesitant about applying for roles that could significantly improve their lives.

This combined approach has delivered outstanding success; together, PeopleScout and the Skills Academy have supported over 14,000 applications from unemployed candidates and made over 600 job offers. Plus, 31 new apprentices have started on our shared apprenticeship scheme with our construction supply chain partners in 2024 alone. By working together, applying the methodologies of business with the values of philanthropy, we can drive real social change.

PeopleScout Jobs Report Analysis – November 2024

Posted on by lloftus

U.S. employers added 227,000 jobs in November, a stronger showing than October’s job gains, which have been revised from 12,000 to 36,000. November’s numbers, which exceeded predictions, confirm theories that the Boeing strike and damaging hurricanes were factors in October’s significant drop. The November unemployment rate rose slightly to 4.2% and has now been at or above 4% for six months, a trend last seen in 2021. Hourly wages maintained their 4.0% year-over-year increase. Employment trended up in healthcare, leisure and hospitality, and manufacturing, while the retail sector lost jobs. 

The Numbers 

227,000: U.S. employers added 227,000 jobs in September.  
 
4.2%: The unemployment rate rose slightly to 4.2%. 
 
4.0%: Wages rose 4.0% over the past year. 

The Good

November brought a welcome rebound in job creation, with the U.S. economy adding 227,000 jobs, in line with economists’ expectations and indicating a recovery from the storm- and strike-distorted figures in October. Gains were particularly strong in healthcare (+54,000) and leisure and hospitality (+53,000), reflecting the resilience of these sectors amid broader economic shifts. Manufacturing also saw a boost of 32,000 jobs as striking Boeing employees returned to work. Wage growth remained strong, with average hourly earnings up 4% year-over-year.

The Bad

Despite strong job growth, there were some potential concerns in the November report. The unemployment rate ticked up from 4.1% to 4.2%, and long-term unemployment is rising, with jobseekers now taking an average of 23.7 weeks to find work—the longest duration since April 2022. The retail sector shed 28,000 jobs, which could indicate weakness in consumer spending or subdued holiday hiring. Additionally, the labor market’s momentum is cooling compared to earlier in the year. The three-month average gain of 173,000 jobs, while healthy, is below the pace seen during the pandemic rebound.  

The Unknown

The November report highlights a labor market that is stable but slowing, raising questions about the sustainability of recent gains. The Federal Reserve will likely interpret the data as supportive of further interest rate cuts at its December meeting, but uncertainty remains. Persistent wage growth could keep inflation pressures alive, potentially complicating the Fed’s plans to slow or suspend rate cuts in the near term. The broader economic context, including potential shifts in fiscal policy and global economic conditions, will also play a critical role.  

Conclusion

Once again, we’re seeing a nuanced view of the U.S. labor market. While the economy continues to add jobs and wages remain strong, there are subtle signs of cooling. The November report reinforces the narrative of a labor market in transition—moving from the extraordinary churn of the post-pandemic period to a more measured, stable state. The Federal Reserve will keep a close eye on multiple market indicators as it considers future monetary policy, balancing their goal of controlling inflation and maintaining economic growth. For workers and businesses alike, the message is one of cautious optimism: the job market remains resilient, but the easy gains of the post-pandemic recovery may be giving way to a more deliberate, measured expansion. 

Talent Trends: 2024 In Review 

Posted on by akessler

At the start of 2024, we highlighted eight key areas that would impact how companies attract, retain and develop talent. As the year comes to a close, we’re revisiting these critical topics to examine what transpired in the talent landscape and explore what may be on the horizon for 2025.  

This year brought a complex mix of challenges and opportunities for HR leaders. Economic uncertainty forced many to re-evaluate talent acquisition strategies, with approaches like modular talent solutions and direct sourcing gaining traction. The ongoing skills gap, intensified by business transformation and the rise of new technologies like AI, highlighted the need for upskilling, reskilling and proactive talent pipelining. Meanwhile, employees continued to reevaluate their relationship with work, demanding greater flexibility, wellbeing support and personalized experiences. Navigating these shifts required HR leaders to become more agile, data-driven and employee-centric, often relying on technology to streamline processes, enhance the candidate experience and gain valuable talent market intelligence. 

In the following review, we trace how our 2024 predictions played out and offer insights for the path ahead. 

1. New Models Help Organizations Ride the Economic Waves 

What We Said:

Talent acquisition teams have experienced significant fluctuations over the past few years—from pandemic-driven downsizing to rapid growth and recent cutbacks—making it critical for talent acquisition leaders to develop strategies for managing through economic uncertainty. Rather than continuing the cycle of boom and bust, organizations should adopt agile approaches to workforce planning, with flexible RPO solutions offering stability during unpredictable times. 

What We Saw:  

Market conditions shifted the recruitment landscape to favor employers in 2024. Year-over-year hiring rates are stabilizing, with a moderation in the hiring slowdown, especially in the tech industry. While hiring rates across many industries were down, healthcare and energy sectors saw continued strength despite the general economic downturn. With continued labor shortages, shifting skills requirements and changing employee expectations, immense pressure remains on employers and their talent strategies.   

Modular talent solutions are gaining traction as a strategic response to economic uncertainty, providing a flexible approach to workforce management that allows employers to adapt to fluctuating demand and optimize costs. As 91% of hiring managers say they’re experiencing hiring challenges, and 45% indicate they’re struggling to find qualified workers for open roles, Modular RPO (recruitment process outsourcing) has proven to be a cost-effective strategy for augmenting internal recruitment capabilities. 

Employers also turned to direct sourcing as a key strategy for tackling staffing shortages. According to Everest Group, 46% of enterprises are actively exploring ways to combine approaches for contingent and permanent talent acquisition management, and 74% see direct sourcing as the best strategy for doing so. By building a talent pool of qualified candidates—including independent contractors, freelancers and other contingent workers—companies can hire faster, reduce costs and fill specific skills gaps within their organization. Leveraging contingent labor helps organizations gain the flexibility and scalability necessary in today’s dynamic market. 

As you consider implementing direct sourcing in your organization, remember that technology is a crucial enabler, and the human touch remains invaluable. Partnering with an RPO provider can provide you with AI-powered, cutting-edge technology, backed by expert talent curation and engagement strategies.  

2. Focus on Internal Mobility 

What We Said: 

Employee retention will remain a top priority for HR professionals in 2024, with 36% identifying it as crucial, leading to an increased focus on internal mobility and skill development. Following the labor hoarding trend of 2023, organizations are emphasizing the transformation of existing workers’ skills to prepare for future needs. Career paths are becoming more fluid, moving away from traditional linear progression to cross-departmental moves, which requires hiring managers to evaluate candidates based on their overall organizational value rather than just role-specific fit. 

What We Saw:   

Internal mobility is on the rise as hiring rates stabilize. According to LinkedIn, internal mobility has increased 6% year-over-year as companies discover how leveraging internal hiring can accelerate organizational agility, employee engagement and retention, and career development. According to LinkedIn’s 2024 Workplace Learning Report, 41% of companies plan to fill more than 30% of their open roles with internal talent. Internal mobility does more than help employers fill critical gaps—93% of employees stay at a company longer if it invested in their career development, and internal hires reach competency 20% faster than external hires.  

Internal mobility programs are more successful when combined with upskilling and reskilling initiatives. As business needs evolve, internal mobility allows employees to move into new roles, and upskilling and reskilling provide the necessary training to close skills gaps and ensure employees are successful in their new roles. By offering these development opportunities, employers expand the pool of qualified internal candidates while boosting employee engagement. 
 
By effectively integrating upskilling and reskilling with internal mobility programs, companies can create a more engaged, agile and resilient workforce, helping them overcome current and future hiring challenges in a dynamic business environment. An RPO partner can help create a robust internal mobility program that leverages best practices to support continuous learning, career growth and workforce planning to retain top talent and swiftly adapt to changing business needs.  

3. AI Becomes a Reality…Slowly 

What We Said: 

While talent acquisition continues to evolve with the growth of new technologies like Generative AI (GenAI)—particularly in streamlining tasks from screening to interview scheduling—organizations are advised to take a measured, principled approach to AI implementation. The key is to start with small projects to identify where AI can add genuine value while maintaining human oversight—which remains central to recruitment processes. 

What We Saw:  

Following the widespread discussion tools like ChatGPT, we thought we’d see organizations move beyond ethical debates to actively integrate GenAI into their talent acquisition strategies. Indeed, eight in 10 global executives see at least one way GenAI will help their employees, yet only one in 10 organizations have “broad leadership alignment, comprehensive tools and strong processes in place for GenAI adoption.” 

While adoption rates vary, AI is transforming talent acquisition. We’ve seen increased use of AI tools for résumé screening and initial candidate assessment, driving recruiter efficiencies, reducing potential unconscious bias and improving quality of hire. Natural language processing tools can ingest thousands of résumés and CVs, and analyze the content, context and trends across the talent pool within seconds. AI tools can be trained to recognize specific skills, experiences and competencies that are required for open roles and then score and rank applicants automatically. 

Some employers have integrated AI-powered chatbots into their recruitment process to create a conversational experience for candidates using natural language processing, offering candidates support 24/7. These mobile-friendly, text interview tools automatically screen candidates using predetermined questions that gauge their interest and qualifications. Based on the responses, the chatbot can instantly determine the next step for each specific candidate. This frees up recruiters to focus on more strategic tasks. 

Adoption of AI-powered skills assessment platforms has also increased, providing an objective and accurate evaluation of candidates’ abilities through data-driven insights. New tech platforms test and measure candidates for skills mastery, personality traits and cognitive abilities. As with all AI-powered efficiencies, the tech-enabled assessments should augment, not replace human expertise.  

Partnering with an RPO provider is an excellent way to ensure careful, diligent and compliant use of AI tools throughout your recruitment process. Above all, AI should not be seen as a replacement for the talent acquisition strategy you’ve already built, but rather a set of tools to make your teams better at tasks both mundane and meaningful. 

4. Business Transformation Impacts Workforce Planning 

What We Said: 

The demand for new types of jobs, particularly in areas like data analytics, software development and green skills (which saw a 677% increase from 2019 to 2023), has grown significantly, with McKinsey noting that one-third of new U.S. jobs created in the past 25 years were previously non-existent roles. While this transformation creates exciting opportunities, organizations face a critical challenge as workforce development systems struggle to keep pace with rapidly changing skill requirements, resulting in a shortage of qualified talent. To address this gap, talent acquisition leaders must focus on proactive workforce planning and employee development.  

What We Saw:  

The demand for tech talent, particularly in areas like AI, machine learning, cybersecurity and software development continued to outpace supply in 2024. The transition to sustainable practices and renewable energy sources also fuelled growth of green jobs in areas like environmental engineering, sustainable agriculture and renewable energy technologies. Across industries, the ability to collect, analyze and interpret data became critical for decision-making, leading to higher demand for data analysts, scientists and engineers.  

The World Economic Forum predicts that 23% of global jobs will change in the next five years due to industry transformation, including AI. According to LinkedIn, employees skilled at using GAI are 5x more likely than others to develop skills like creative ideation, design thinking and emotional intelligence. So, with 79% of CEOs accelerating their post-crisis business strategy, the pressure is on HR leaders to achieve the vision of a tech savvy workforce.  

HR leaders must take an active approach in the C-Suite to achieve strategic business outcomes with an edge in human capital by assessing the current state of the workforce and developing a roadmap for optimizing employee value and identifying hidden potential to close skills gaps. Yet, according to Gartner, while 87% of HR leaders agree that shifting business needs requires continuous HR transformation, only 28% say that the HR strategic planning process is fully integrated with the business planning process. 

Collaboration between the C-Suite and HR is essential for successful talent acquisition in today’s dynamic business environment. HR must be deeply involved in business discussions to understand the organization’s goals to anticipate future needs, identify potential skills gaps and develop proactive strategies to attract and grow the right talent. 

5. Growth in Skills-Based Practices  

What We Said: 

Organizations are adopting a comprehensive approach to workforce adaptation by investing in upskilling programs and partnering with RPO providers to secure talent with future-proof skills. The trend is moving towards skills-based recruitment, with companies like Google leading the way by eliminating degree requirements, which not only expands candidate pools but also promotes workplace diversity and inclusion. Companies are shifting their assessment practices to focus on actual skills rather than traditional credentials, recognizing this as a more effective way to identify qualified candidates in today’s evolving job market. 

What We Saw:  

In adapting to the changing skills landscape, employers are rightly focusing on specific skills rather than traditional credentials and talent leaders are increasingly recognizing the value of experience and learnability over degrees. Alternative credentials like certifications, badges, micro-credentials and other qualifications earned outside of traditional degree programs are also gaining acceptance, as they often focus on specific skills or knowledge areas, a natural fit for skills-based hiring strategies. Recognizing these credentials helps employers expand their talent pools, hire faster and improve quality of hire.  

Recent estimates of the impact of large language models (LLMs) by the International Labour Organization estimate that 24% of clerical tasks should be considered highly exposed to automation effects with an additional 58% having medium-level exposure, while another report suggests that 80% of U.S. workers could see at least 10% of their tasks automated. The International Monetary Fund estimates that AI would affect 40% of jobs and worsen inequality, while Goldman Sachs predicts that up to 25% of the work currently done by humans could soon be automated by generative AI.  

As AI increasingly takes on the less complex, more repeatable tasks being done by the workforce, companies will need to hire talent with broader, uniquely human skills. Skills like problem-solving, adaptability, and collaboration—all skills that spur organizational agility—will continue to rise in demand. In fact, 69% of U.S. executives say they plan to prioritize hiring candidates with soft skills, especially transferrable skills that will allow candidates to move nimbly across roles. 

While making the shift to skills-based hiring practices takes time and effort, an RPO provider can accelerate your transition by offering strategic guidance around talent assessment design to embed skills at the core of your talent practice and build a future-fit workforce. 

6. Stalled Momentum in HR Tech Upgrades  

What We Said: 

As the HR technology market grows ever bigger, 2024 is set to be a pivotal year for recruitment technology upgrades, with organizations increasingly leveraging AI-powered features to automate routine tasks and enhance the candidate experience. Talent acquisition leaders are focusing on using technology to augment human interactions and analyze data for more agile resource management, while simultaneously proving their ability to deliver digital transformation and demonstrate clear ROI on these investments. This push towards technological advancement presents an opportunity for TA leaders to dispel past criticisms about HR’s ability to drive meaningful technological change. 

What We Saw:   

Economic uncertainty impacted our predictions for HR tech upgrades in 2024. While the drive for technological advancements in HR remained strong, budgetary constraints and cautious spending impacted the pace of adoption. According to Gartner, when asked about priorities and expected challenges in 2025, 55% of HR leaders say their current technology solutions do not cover current and future business needs. HR leaders are increasingly seeking tools to gather and analyze data to inform their talent strategies and enhance the candidate experience. Uncertainty about the economic outlook led some companies to postpone major HR tech implementation, opting for smaller-scale upgrades or maximizing the value of existing systems.  

The shift to cloud-based HR systems continued, offering scalability and flexibility despite budget constraints. Companies also focused on integrating their existing HR systems to improve data flow and drive efficiencies. Under budget scrutiny, a greater emphasis was placed on demonstrated ROI of HR tech solutions.  

A Gartner survey identified HR technology as the top priority for HR investment for three consecutive years. So, while economic challenges may persist, there’s reason to be optimistic that HR tech investments will increase in 2025 as companies recognize the long-term benefits of building the ultimate tech stack. One of the biggest value-adds an RPO partnership brings is experience with and access to the latest in talent technology. An RPO provider can help you assess your current solutions, show you how emerging technologies like AI, machine learning and predictive analytics can boost your ability to attract top talent and customize a technology ecosystem to meet your needs now and into the future.  

7. Employee Expectations of Work Have Changed 

What We Said:

Talent acquisition leaders must act as strategic market listeners, continuously adapting their employer value proposition (EVP) to align with evolving candidate expectations. As employees increasingly demand more personalized experiences, organizations need to move beyond traditional one-size-fits-all EVP approaches to embrace a human-centric strategy that acknowledges employees’ full personhood. This more holistic approach, focusing on creating exceptional life experiences and positive emotional connections, will be crucial for both attracting top talent and improving retention rates in 2024. 

What We Saw:   

2024 saw a significant shift in how employees view their work, requiring employers to adapt. While compensation remains important, employees are increasingly prioritizing work-life balance, flexibility, purpose and wellbeing, and are seeking employers with a demonstrated concern for their employees—The Executive Development Network reports that 86% of employees would leave their current job if there was no obvious support for employee wellbeing.  

While many companies expanded flexible work options, including remote work, hybrid models and flexible schedules, return-to-office mandates were still prevalent with the likes of Amazon doubling down on their in-person stance. The power play between employers and employees is expected continue into 2025, and not just regarding hybrid work. Employers will continue to face increased pressure to integrate wellbeing into the workplace, as 62% of candidates say they only apply for jobs that meet the majority of their EVP requirements according to Gartner’s Q2 2024 Voice of the Candidate Survey.  

To attract and retain top talent, employers will need to actively listen to their employees’ needs and preferences to create a human-centric workplace and prioritize authenticity and transparency in communicating their values with candidates and employees. As the relationship between employers and employees will continue to evolve, organizations can benefit from leveraging data and analytics to understand employee behavior to tailor their experiences, and utilizing technology to support flexible work, personalize benefits and offer wellbeing programs. 

8. Data Remains Key 

What We Said:

The labor market faces significant challenges due to Baby Boomers’ retirement creating a brain drain, coupled with a smaller upcoming workforce that lacks certain soft skills and the growing impact of long-term illness, including COVID-19 complications, which has sidelined over 2.5 million people in the UK alone. To combat this talent scarcity, organizations must focus on attracting and training Gen Z while leveraging data analytics as a strategic tool. Talent acquisition leaders need to elevate talent intelligence to the C-Suite level, using data-driven insights to understand talent pools and optimize recruitment and retention strategies for maximum ROI. 

What We Saw:   

Effective use of data remains crucial in navigating talent scarcity and building a future-ready workforce. Savvy talent leaders are using real-time market intelligence such as salary trends, skills demand and competitor activity to make informed decisions about their recruitment and retention strategies.  

With increased adoption of AI tools across the recruitment process, machine learning models are providing predictive and prescriptive hiring insights. AI can assess candidate interest, motivations, likelihood to accept an offer and even predicted tenure, empowering recruiters to prioritize and personalize their outreach efforts. When it comes to early careers recruitment, data revealing the preferences, values and career aspirations of Gen Z is essential in developing recruitment strategies that resonate with these jobseekers.  

A key benefit to partnering with an RPO provider is the comprehensive reporting tools and data insights they can provide. PeopleScout’s Affinix® Analytics business intelligence suite offers a holistic view into the recruiting process—from job seeker data and operational metrics to campaign analytics and market intelligence.   

These insights will remain paramount in 2025—armed with the right data, employers can proactively identify and attract top talent ahead of their competitors and drive business outcomes. 

The Future is Bright with the Right Talent Partner  

The future of work holds exciting potential, but also some uncertainty. However, while individual trends are difficult to predict, TA leaders that embrace agility, skills practices and tech innovation will find themselves in a strong position to prove their value in driving business performance. As your talent partner, PeopleScout will be ready to support, challenge and inspire you for whatever lies ahead.  

By staying on top of key shifts like these and working with an expert talent solutions provider like PeopleScout, companies can build workforces with the skills, mindsets and diversity of experiences to thrive in the next era of business. 

PeopleScout Jobs Report Analysis – October 2024

Posted on by lloftus

U.S. employers added 12,000 jobs in October, marking the weakest monthly employment gain since December 2020. While experts predicted impacts from the continuing Boeing strike and recent hurricanes, the number was significantly lower than economists expected. The unemployment rate held steady at 4.1% and hourly wages maintained their 4.0% increase over last year. Employment numbers for August and September have also been adjusted, down a combined 112,000 jobs from what was previously reported. 

The Numbers 

12,000: U.S. employers added 12,000 jobs in October.  
 
4.1%: The unemployment rate held steady at 4.1%. 
 
4.0%: Wages rose 4.0% over the past year. 

The Good  

While the headline jobs number for October was disappointing, coming in far below expectations, there were still some bright spots in the report. The unemployment rate held steady at a historically low 4.1%, suggesting overall labor market stability. Additionally, average hourly earnings continued to grow 4.0% year-over-year, outpacing inflation and indicating that wage pressures remain strong despite the slowdown in hiring. The healthcare sector showed continued strength, adding 52,000 jobs. 

The Bad  

Economists forecasted a slowdown in October, due largely in part to business disruption and job losses caused by recent hurricanes and the ongoing Boeing strike—however, this significant miss of expectations caught many economists by surprise. The 12,000 jobs added in October represented a sharp deceleration, and downward revisions to August and September’s gains were revised downward by a combined 112,000 jobs, suggesting a potential underlying cooling in the labor market.  

The Unknown  

The extent to which the October report reflects temporary disruptions versus a broader economic slowdown remains unclear. The Federal Reserve will be closely watching the data as it determines the appropriate pace of future interest rate cuts. While the October report may not significantly alter the Fed’s immediate policy path, with a quarter-point cut widely expected at the upcoming November meeting, the outlook for the path of rate cuts beyond that is less certain. Much will depend on how the labor market and other economic indicators evolve in the coming months.  

Conclusion  

The October 2024 jobs report paints a mixed picture of the U.S. labor market. The headline number of just 12,000 new jobs was disappointing, but the underlying fundamentals— such as the steady unemployment rate and strong wage growth—suggest the economy is still on relatively solid footing. However, the downward revisions to prior months’ data and the sharp declines in specific sectors raise concerns about potential weakening in the broader job market. The Federal Reserve will have to weigh this nuanced data as it determines the appropriate course in the months ahead. 

[On-Demand] Job Interviews & Gen AI: Pitfalls & Best Practices to Hire Top Talent

Posted on by akessler

[On-Demand] Job Interviews & Gen AI: Pitfalls & Best Practices to Hire Top Talent

 

While everyone’s talking about AI in recruitment, we’ve been analysing its real impact on the candidate assessment process. Our data shows that while pre-recorded interviews remain crucial for volume hiring, they’re increasingly vulnerable to manipulation from candidates leveraging Generative AI (Gen AI) tools like ChatGPT or Gemini.

So, how do you accurately assess candidates while ensuring fair opportunities for all?

In this webinar, PeopleScout’s Head of Assessment Design, Amanda Callen, and Talent Solutions Director, James Chorley, break down the issues and share practical strategies for securing your interview and assessment process in the age of Gen AI. Whether you’re concerned about AI’s impact on your current practices or looking to future-proof your process, this session covers pitfalls ahead and best practice you can implement immediately.

In this webinar, we’ll tackle:

  • Gen AI Disruption: Understanding how Gen AI actually impacts pre-recorded interviews and assessment processes
  • Smart Mitigation Strategies: Exploring dual assessment approaches to safeguard quality without compromising the candidate experience
  • Future-Proofing Your Process: Anticipating Gen AI advances to help with reviewing and adapting your assessment tools to stay ahead
  • Plus, you’ll get a free guide!

You’ll gain a comprehensive understanding of both the challenges to interviews and suggested solutions, leaving with concrete strategies to protect your recruitment process while embracing innovation.

 

Presenter Information:

Amanda Callen, CPsychol AFBPsS HCPC-registered FRSA

Amanda is a Chartered Psychologist and an HCPC-registered Practitioner Psychologist with over 30 years’ experience of working in occupational psychology consultancy and research within UK and global public, private and third sector organisations. 

She is an assessment design and strategy specialist, with a particular interest in diversity, inclusion and fairness in assessment methodologies, and in how AI and new technology is impacting assessment practice and reality.

Amanda is Head of Assessment Design at PeopleScout, where she leads the team of psychologists providing a range of psychology services, including evidence-based diagnostics, assessment data analysis and bespoke assessment methodology design, alongside our consultancy and partnership services.

James Chorley

James Chorley is a seasoned professional with over 16 years of extensive experience in the Recruitment Process Outsourcing (RPO) industry. As a Talent Solutions Director – RPO for PeopleScout, he has a proven track record of success in various facets of RPO, including implementation, first-generation RPO, early careers and assessment solutions. His expertise lies in forging strong client partnerships and delivering tailored recruitment strategies that drive success.

In addition to his RPO expertise, James has a robust background in learning and development. This unique combination enables him to design and implement comprehensive assessment solutions that not only identify top talent but also support their ongoing development and growth within organisations. His commitment to continuous improvement and innovation in recruitment processes sets him apart as a thought leader in the industry.