Data Report: 2024 Labor Trends
An analysis of 2023 trends and forecasts for 2024
Unemployment rates are falling but the labor market is still tight
For the past few years, there has been a tight labor market with employees quitting at high rates across the globe.
Employment data shows signs that the labor market has begun to normalize. Still, many industries all over the world are currently experiencing hiring challenges. In fact, the global unemployment rate was 5.77% in 2022, while it was 6.2% in 2021 and 6.9% in 2020. In 2019, before the pandemic, the global unemployment rate was 5.54%
Although nations are reporting improvements in their labor markets from pandemic-driven lows, researchers attribute part of the employment challenges in the United States and the United Kingdom to low labor force participation. That is, more people are choosing to remove themselves from the workforce, while in countries like Australia, other factors such as monetary policies are contributing to a tight labor market.
Across the globe, fears of a worldwide recession are still prevalent, although recession probability indicators vary regionally. Amid this economic climate, there are three potential areas businesses can leverage to improve hiring and retention:
- Reexamine wages and other benefits
- Promote flexible scheduling
- Implement technology throughout the hiring funnel
For business professionals specializing in the cleaning and security industries, the current job market remains challenging and may stay that way for some time. Researchers expect things to improve, though it is debatable whether it will be in 2024. To that end, TEAM Software by WorkWave (TEAM Software) is able report the following compared to industry-wide findings*:
- U.S. Hire and quit rates are slowly returning to pre-pandemic norms
- Hire rates in the cleaning industries were slightly below pre-pandemic norms, while security industry hires were above pre-pandemic norms in 2023
- Quit rates in the cleaning industry were below pre-pandemic norms, while security industry quits returned to pre-pandemic averages in 2023
- Rising labor participation and growth rates
- Wages are slightly above rising inflation
Taking steps to respond to the tight labor market, which is expected to remain that way for at least part of 2024, involves honing in on recruitment and retention efforts and taking advantage of technical developments made specifically for security and cleaning professionals. Additionally, a technology partner with deep industry expertise is imperative to understanding and addressing business challenges brought on by the changing labor market.
Download the full, free data report below.
*Key findings are based on TEAM Software by WorkWave US sample data findings