Recruiting News

The job market is looking hot, hot, hot heading into summer. According to the latest U.S. Bureau of Labor Statistics’ (BLS) monthly jobs report, hiring continued to move at a faster pace than expected with gains of 339,000 jobs in May. Growth was seen across the board, primarily in tech, government, healthcare, leisure and hospitality, and more.

Looking ahead, Monster’s Economist, Giacomo Santangelo, says there’s a good chance the current hiring momentum will continue this summer. “The latest data indicates a strong foundation for sustained employment opportunities,” he says. “However, the continuation of the job growth will depend on several factors, such as the pace of economic recovery, any potential policy changes, and the resolution of global uncertainties (e.g., oil prices, continued inflation).”

Here’s our breakdown of the latest job numbers along with key takeaways to help employers plan for the months ahead.

Increasing Unemployment Rate May be Related to the Skills Gap

While hiring was strong in May, the BLS monthly jobs report showed that the unemployment rate increased 0.3 percentage points to 3.7%, while the labor force participation rate stayed about the same. According to Santangelo, this may be a sign of a widening skills gap. He says, “It is important to consider that the increase in the unemployment rate may indicate a potential mismatch between the skills and qualifications of job seekers and the requirements of available positions. This calls for employers to evaluate their hiring strategies and consider investing in training programs or upskilling initiatives to bridge the skills gap.”

Inflation Might Drive Job Searches Among Candidates

In a recent Monster poll, 81% of workers said their pay has not kept up with the rising cost of living—and generally speaking, it hasn’t. The rising cost of goods continues to outpace wage growth, with the BLS most recently showing that average hourly earnings rose 0.3% in May while consumer prices increased 0.4%.

Until inflation cools, Monster and BLS data indicate that more people may be looking for work, whether it be a higher-paying job or a second job. The same Monster poll found that about two-thirds of workers are looking for a higher-paying job due to inflation, while 40% of workers are considering taking another job to help pay the bills. Just over the past month alone, candidate job searches were up 10% on Monster with “part-time” being the #3 most searched term overall by candidates in May. Over the past year, BLS job numbers show the number of people holding multiple jobs increased 5.5%, the bulk of which included people with a primary full-time job and a secondary part-time job.

An increase in multiple jobholders and part-time workers may be good for businesses amid ongoing labor shortages and increased employer costs. While employers should be cautious about relying solely on these types of workers, Santangelo highlighted a few benefits of hiring part-time help, including:

• The availability of part-time workers can fill gaps in shifts, cover seasonal demands, or provide flexibility for employers in managing their workforce needs.
• The presence of part-time workers with specialized skills can complement full-time employees, contributing to enhanced productivity and operational efficiency.
• Hiring part-time workers can be a cost-effective strategy for employers, particularly in an inflationary environment as they tend to receive fewer benefits and lower wages compared to full-time employees.

The Class of 2023 Enters the Labor Market

“Pomp and Circumstance” played, tassels were moved from right to left, and caps were tossed with reckless abandon. Now with diplomas in hand, this year’s grads are looking for jobs to make all those late-night study sessions worth it. Despite the current economic conditions, Monster’s 2023 State of the Graduate report found this year’s graduating class is more confident they will be able to find a job this year, compared to last year’s cohort.

“Graduates may perceive increased opportunities due to expanding industries, growing sectors, or an overall recovery from the last few years,” Santangelo says. “Additionally, the availability of online job platforms and recruitment tools may have enhanced graduates’ confidence in finding suitable employment. These platforms provide greater visibility and accessibility to job opportunities, facilitating the job search process for graduates.”

Artificial Intelligence’s Effect on Tech Jobs

Since the rise of artificial intelligence like ChatGPT, people have worried that robots would soon be coming for their jobs. While we are already seeing AI and other kinds of automation threaten certain jobs, such as cashiers being replaced with self-checkout lines or customer service representatives with chatbots, it’s also ushering in new jobs in tech.

Santangelo says, “Continued innovation, continued transformation (across all industries) to online, digital, and AI is expected to create demand for tech professionals who can help organizations navigate and leverage new technologies. This may lead to increased hiring in roles related to digitalization, software development, IT consulting, and digital marketing.”

Recent Monster and BLS job numbers reflect this surge in hiring for tech-related roles. In May, the business and professional services sector led the way in the BLS monthly jobs report with gains of 64,000, the bulk of which was seen in tech (43,000). Meanwhile, on Monster, some of the top tech jobs posted over the past month include:

• Software developers, applications
• Network and computer systems administrators
• Computer user support specialists

From the candidate side, job search activity appears strong as some of the top overall job searches in May were for tech jobs. Within tech, some of the top jobs being searched on Monster include:

• Java developer (#8 overall)
• Data engineer (#10 overall)
• Software engineer

Teens Fill Leisure and Hospitality Summer Staffs

Heading into summer, hiring within leisure and hospitality picked up in May with the addition of 48,000 payrolls. With demand high and schools out for the summer, restaurants, ice cream stands, amusement parks, summer camps, and more may have tapped the teenage labor market to bulk up staff amid ongoing labor shortages. And with employers paying more than ever before, it’s not surprising that the number of employed teens this year is up 34%, compared to the last pre-Covid summer when it was only 30%.

“The summer often brings a surge in demand for leisure and hospitality services as people engage in recreational activities and travel,” Santangelo says. “Hiring teens to fill these positions helps businesses meet the increased demand and maintain smooth operations during the busy summer months. Their employment allows establishments to expand their workforce without putting excessive strain on existing workers.”

With the industry still down 349,000 jobs (2.1%) from pre-Covid levels, Monster data shows the leisure and hospitality jobs most in demand right now. These include:

• Cooks
• Food prep and serving workers (including fast food)
• Waiters and waitresses

Stay Tuned for the Next Monthly Jobs Report

Monster aims to provide employers with the insight needed to move forward. As you plan your hiring strategy over the next month, check out Monster Intelligence for a deeper dive into data and what it will mean for your business

We’ll see you again in July when we’ll release our next take on the monthly jobs report.

Recent hiring freezes and layoffs are creating an environment where recruiting organizations have to stay pliable and responsive to change. Industries like retail trade, warehousing, and storage have stopped hiring for the time being, and job growth has slowed in areas like leisure, hospitality, and healthcare, according to the latest data from the Bureau of Labor Statistics.

Layoffs, meanwhile, are up 15% for the past month and nearly 400% over this time last year. Labor participation rates are also lagging: There are fewer workers ages 20 to 24 and over 55 than there were in February 2020, data shows. Other research highlights about 700,000 “missing” workers in the U.S. labor force.

In a tight market, recruiters have to be creative and nimble to attract the best talent. Here are six strategies for being quick on your hiring feet.

Always be Recruiting

With 50.5 million people quitting their jobs in 2022, making sure you’re always recruiting can ensure that you’re capturing the newest entrants to the talent market and that you’re prepared when a job opening is available.

“If someone reaches out to us about a role with our company, we will chat with them, even if we aren’t currently looking,” says Eric Mochnacz, director of operations at HR consulting firm Red Clover. “They may be someone we can call on when we decide to go to market for an open role.”

This works both ways: Don’t stop reaching out to candidates, either. “Even when someone tells you ‘no,’ most candidates appreciate it when potential employers seek them out,” says Karolina Kijowska, head of people at tech company PhotoAiD. “And that answer might change within the next few months.”

Look Internally

When outside talent is hard to find, recruiters may need to find their candidates in-house.

“Companies are turning to what I call ‘quiet hires,’ — promotions within the business, announced with little fanfare,” says Travis Hann, co-founding partner at boutique recruiting firm Pender & Howe.

This doesn’t mean there’s no role for a recruiter, however. “Combing through a roster of employees can often be more challenging than simply going with a big name,” Hann says. “It requires a comprehensive evaluation of the potential impacts on multiple departments. But when done thoughtfully, these internal moves can result in tighter teams and faster transitions.”

Incentivize Passive Job Seekers

Passive job seekers are candidates who have the skills you need and typically are already employed — but who may be open to the right opportunity if it finds them.

“The best candidates are often passive recruits, especially as other businesses increase layoffs,” says Marnix Broer, co-founder and CEO of Studocu, a student document resource community. “Our biggest source of passive candidates is employee referrals, though we also link up with passive recruits and keep those relationships warm year-round.”

Publicizing the great benefits available can also help organizations lure candidates who aren’t really looking. Some companies do this by “offering career-development opportunities and flexible working arrangements,” says Paw Vej, chief operating officer at personal finance site Financer.com.

Widen Your Reach

If traditional channels of candidates have run dry, recruiters will have to consider other avenues. For instance, a recruiter might establish a relationship with universities and other educational institutions in order to identify potential candidates, says Samar Pahwa, HR manager of health site FindHealthTips.com.

Opening a position to remote workers also allows you to broaden your search. “Organizations that offer flexible work arrangements can attract a larger pool of geographically unrestricted candidates,” Pahwa says.

Stay Active on Social

Making sure a company’s brand has a strong presence on social media can help build an audience and a pipeline of candidates with brand awareness.

“We are active on LinkedIn, both from our personal accounts and our company content,” says Mochnacz of Red Clover. “So we drive a lot of organic traffic through our content. In doing that, we build up interest in our firm. So when we do post a job, those people are more inclined to apply because they’ve been following our company.”

Be Smart About Your Job Ads

At Monster, recruiters are taking advantage of Pay for Performance job ads, which offer maximum flexibility and agility. Monster promotes jobs across our partner network to increase reach, and you pay only when a seeker clicks to view the job. Recruiters can strategically syndicate content, and campaign strategy and segmentation are tweakable based on changing job volume and customer priority.

Generation Z is smart, driven, and cares deeply about the world they’re inheriting — perhaps even more so than older generations. As the youngest cohort in today’s workforce, Gen Z carries a lot of eco-anxiety and considers sustainability to be a huge priority not just in their personal lives, but in their professional lives too.

According to a recent survey, Gen Z cares so much about environmental issues that 1 in 3 would turn down a job opportunity from an employer that wasn’t environmentally conscious. Not to mention, more than half would be willing to take a pay cut for the sake of environmental, social, and governance (ESG) concerns.

“Gen Z cares about sustainability in the workplace because they have knowledge that previous generations didn’t have,” says Asim Hafeez, owner and operator of Empower Energy Solutions. “Gen Z is different. They’ve been raised with knowledge of what is happening to the environment and what causes damage to the environment and how damaging some business practices are. Gen Z is also getting to see the results of poor decisions that have been made environmentally by the generation before. And because they see the side effects, environmental issues are a lot more pressing for them.”

For employers looking to hire the next generation of workers, learn how going green can positively impact your emerging workforce recruiting plans.

Going Green in a Post-COVID Work Environment

Prior to the COVID-19 pandemic, companies were able to turn their offices green in a number of ways. Switching to energy efficient light bulbs, setting up recycling and compost bins, and encouraging employees to carpool are just a few examples. Now, with so many businesses operating remotely or in a hybrid model, traditional workplace sustainability efforts may no longer be applicable.

“COVID has shown us just how much waste we create, whether it be energy, water, or material discards,” says Stacy Savage, founder and CEO of Zero Waste Strategies LLC. “For example, an employee would normally use office bins to throw away their trash and possibly recycle and compost their food waste if those options were available to them. Now that employees are working from home, they must look at how much waste they are producing daily in their home bins…the practice of ‘out of sight, out of mind’ can no longer be an excuse as to why we’re not changing our own personal habits.”

Fortunately for employers looking to go green, sustainability efforts can take many forms, some of which don’t necessarily require office space. A few ways remote or hybrid companies can go green include:

• Community philanthropy or corporate volunteer days
• Earth Day sponsorships
• Utilizing data centers and servers that are powered by renewable energy sources
• Building out “green teams” for employee leadership development

Additionally, employers can provide training and educational opportunities for employees to better understand how to practice sustainability in their everyday lives, especially if they are working from home. For example, employers can educate workers on:

• How to start recycling and composting
• How to lower their water, gas, and electricity bills
• How to identify and reduce air and energy leaks in their homes

“The biggest thing a business can do is coaching on what people can do to have a green impact in their day to day lives,” Hafeez says. “Green efforts that happen every day are significantly more important than what happens once a month or once in a while.”

Incorporating Sustainability Efforts Into Employer Branding

Knowing that Gen Z is more likely to be attracted to companies that prioritize sustainability, it’s important to ensure green efforts are being communicated to candidates. Leveraging employer branding, like your employee value proposition (EVP), to promote green initiatives can help spread the word about the impact your company is making on the environment.

“Incorporating sustainability initiatives into the EVP can help to attract candidates who are looking for a workplace that aligns with their values,” says Deepali Vyas, CEO of Fearless+. “Employers can also highlight their sustainability efforts in job descriptions, career pages, and other recruitment materials to showcase their commitment to sustainability.”

Just make sure when you’re promoting green efforts, you aren’t telling any white lies. This digitally-savvy generation will surely be able to sniff out brands that are “greenwashing,” or exaggerating their environmental practices

“Individuals in Gen Z need to be able to trust their employer is doing everything it can to mitigate wastes and emissions to the air, water, and soil,” Savage says. “Additionally, if that employer is greenwashing its sustainability efforts, it is likely they’ll be exposed on social media or viral videos that can create a PR nightmare.”

Building Your Emerging Workforce Recruiting Strategy

When it comes to attracting and retaining Gen Z employees, embracing sustainability, and using it as a tool within employer branding will be crucial. Want to learn more? Contact one of our in-house experts at Monster Strategic Talent Solutions to see how we can help market your brand to today’s top candidates.

High inflation and the ensuing economic downturn have affected virtually all aspects of hiring, as employers enact hiring freezes and lay off workers en masse. Internships, of course, are not immune to the effects either. While employers may be considering putting internship programs on hold this summer, experts say that could be a big mistake.

“While it may be tempting for employers to cut back on internship programs during a recession, doing so can have long-term consequences for the organization,” says Deepali Vyas, CEO of Fearless+. “By continuing to invest in talent development and maintaining a commitment to social responsibility, employers can position themselves for success both during and after difficult economic times.”

Learn how employers can leverage internship programs to fill immediate needs during a recession and help build their talent pipelines for the future.

Why Employers Should Continue Internship Programs

Rain or shine, there are several reasons why employers should continue to offer internship programs during a recession or times of economic uncertainty. For one, interns may be able to fill in gaps to help keep operations on track when there are hiring freezes or long transitionary periods.

“While interns should not be doing the same work as employees, with companies laying off workers en masse this can be an opportunity to reevaluate your company’s internship program and strategically reassign some of the work to interns,” says Dr. Kyle Elliott, MPA, CHES, founder and career coach of caffeinatedkyle.com. “This not only supports the company through these challenging economic times but also provides the intern with hands-on experience, in addition to bolstering their resume with relevant industry accomplishments when they’re on the job market.”

As the skills gap continues to widen, internship programs also offer a prime opportunity for employers to mentor future employees and build their talent pipeline for better days ahead. After all, circumstances may change between now and the fall, which may allow employers to consider hiring some of the great intern talent they’ve had a chance to vet with on-the-job experience.

“Employers are struggling nationwide to fill open positions and are finding a misalignment with the skill set they think they need and the skill set applicants have,” says Julie Lammers, senior vice president of advocacy and corporate social responsibility at American Student Assistance. “Work-based learning experiences like internships allow employers the opportunity to expose young people at an earlier age to the kinds of skills they will need to be successful and help train them for, or often receive, the certifications necessary to start contributing immediately to the workforce.”

Additional benefits an internship program may provide employers include:

• Increasing diversity, equity, and inclusion
• Building a positive brand image
• Access to new ideas and perspectives
• Creating mentorship opportunities for more senior employees
• Fulfilling social responsibility

How to Hire and Manage Interns During a Recession

While employers may already be aware of the many benefits internship programs provide, implementing these programs may prove challenging in light of recessionary fears. Rather than scrapping these programs completely, employers should take the time to reevaluate and make adjustments where necessary.

“The biggest barrier to employer participation in an internship program is the inability to manage the program internally,” Lammers says. “When times are tight, these kinds of training programs are often seen as ‘nice to have’ rather than ‘need to have.’ Before cutting these programs, we would encourage employers to try to partner with a business intermediary like a workforce board or chamber of commerce, that may be able to lift some of the administrative burdens by managing them in a central location. The Boston Private Industry Council or Skills for Rhode Island’s Future are two great examples of these types of coordinating bodies for internships.”

Employers struggling to start up or manage their internship program this summer may also consider:

• Pivoting to remote internships
• Delaying the start or shortening the length of the internship program
• Reducing the number of internships available

Knowing that some employers may choose to pause their internship programs, there may be a surplus of students looking for work this summer. Employers opting to move forward with their internship programs will want to make sure they are conveying the right message to attract top candidates to their programs. Take a look at employer branding materials, such as an employee value proposition, job descriptions, career pages, and even social media, to ensure candidates understand how an internship could benefit them, too.

“Students and recent graduates with impressive resumes often have their choice of internship programs and are typically being pursued by multiple companies,” Dr. Elliott says. “Beyond paying your interns, which is table stakes at this point, review the professional development and mentorship opportunities you’re providing them. Additionally, consider what career ladders are available to them post-internship, as students often gravitate toward those companies where they see long-term potential.”

How to Navigate Economic Uncertainty

From internships to the C-Suite, employers will likely have to reevaluate hiring and workforce management strategies over the next few months. Depending on your business, some strategies may be more feasible than others, but the key is having expert resources and analysis at your fingertips. To learn how to better navigate the months ahead, download our Recruitment Survival Guide.

In the UK, there’s a big workplace shift afoot: In November, 100 UK companies decided to switch permanently to a four-day work week following a pilot program in which more than 70 companies participated.

Midway through the trial, 95% of firms said productivity either stayed the same or improved since moving to four days a week, according to a survey from 4 Day Week Global, which ran the experiment. And 86% of companies said that they’d be “likely” or “extremely likely” to consider keeping the four-day work week permanently.

A four-day work week has benefits: It’s a great tool for attracting and keeping talent, gives workers more time to tend to their personal lives, and can boost productivity overall. But it works better in some industries than others, and work culture in the U.S. isn’t quite the same as it is in the UK.

Here’s where U.S. companies stand on a four-day work week.

Some U.S. companies are already doing it

Some U.S. firms have already adopted the four-day model, including Kickstarter, thredUP and the city of Morgantown, West Virginia, among others. In fact, 40% of companies have started using a four-day work week or are implementing one, according to a recent EY Future Workplace Index.

Arrow, a PR firm in Austin, Texas, implemented a 32-hour four-day work week in 2020, partially in response to employees’ overall burnout. “We were all deep into Zoom and people were really fatigued from being on Zoom calls and going through difficulties of what COVID presented for everyone,” says Dave Shaw, Arrow’s founder and CEO. “We decided, ‘Why don’t we just take all of Friday off for the summer?’ And it worked so well — people came back completely refreshed and energized and ready to go.”

At the end of the summer, Arrow’s leadership team voted to keep the four-day work week. “We realized it didn’t hamper our productivity at all,” Shaw says. “We informed our clients, and with almost no exception the reaction we got was, ‘That’s amazing, I wish my workplace would do it, too.’”

There are also hybrid four-day models

Other companies have adopted a four-day work week — but only part of the time. Teambuilding.com, a corporate events firm, runs four-day work weeks in January and July, which are the company’s slow months, and they’re considering expanding into other months.

“October, November and December are, by far, the busiest for us,” says Michael Alexis, CEO of the company. “Our team works hard, and they work long hours. Coming into January, it’s convenient for us to be able to provide that time off. It’s also very much earned.”

At public relations firm FischTank PR, employees have been split into two groups, and the groups alternate having every other Friday off. This ensures that there’s always someone available to service client needs, since half the team is present every Friday.

“It works out to be an extra 20 to 23 days off during the year,” says Matthew Bretzius, president and partner of the firm. “Feedback we’ve gotten has just been about how helpful it is for them to have that extra day every couple of weeks to recharge.”

There are questions to consider

Instituting a four-day work week at a U.S. company requires some thought. “How will overtime pay be calculated?” says Linda Shaffer, chief people and operations officer for Checkr, a human resources background check company. “Will the way that holidays and vacations days are handled need to change?”

Additionally, how will the four-day week work? Is it every Friday off, or is it any four days a worker chooses? Will workers put in the same hours over four days, or will they work fewer hours overall?

“In the UK, they’re looking at having four days in the work week and still paying their full salary,” says Robert Bird, professor of business law and the Eversource Energy Chair in Business Ethics at the University of Connecticut. “This can obviously happen when the labor market is tight. Prospective employees can be more aggressive.”

Flexibility may be key in the U.S. 

While some forms of work slide easily into a four-day model, it’s harder to visualize how it would work in industries like healthcare or manufacturing, or anything requiring shift work. “Hospitals need 24/7, 365-day coverage, and that means a significant number of their employees work schedules that are less than ideal,” Bird says.

As companies contemplate this model, some HR experts feel that U.S. workers may value flexibility above a set four-day schedule.

“U.S. companies, in contrast to those in the UK, may opt to focus more on flexibility and work-from-home policies rather than making a permanent shift to a four-day week,” Shaffer says. “This would provide employees with the same benefits of a shorter week while allowing employers to remain agile in their staffing needs.”

One thing is certain in a market where attracting talent is crucial: if it can be done, a shorter work week is a selling point. Says Arrow’s Dave Shaw, “We have a job posted right now, and one of the top bullets is ‘four-day work week.’”

The holidays are fast approaching. Sales are predicted to increase just 4% to 6% during this year’s holiday season, versus 15% last year, according to projections from Deloitte. In response, some companies are already announcing that they’re hiring fewer seasonal workers: Walmart is hiring 40,000 temporary workers this year, down from 150,000 last year. Macy’s will hire 41,000, compared to 76,000 last year.

Even so, a slower holiday season is still a bump up from the rest of the year. If you’re a business that hires for the season, here are strategies for handling seasonal hiring when spending may be lower than usual.

Hire Internally First

If you’ll need to fill additional shifts, consider whether you can offer them to your current employees.

“They may want to pick up extra shifts to earn more for the holidays,” says Marina Vaamonde, owner and founder of online house marketplace HouseCashin. “If you’ve got enough people to cover the expected increase in workload, you might not have to look outside, or you would need to hire fewer temporary workers than normal.”

This may require training your staff on the art of the “holiday hustle,” says Eric Elggren, co-founder of leather accessories company Andar. “Upselling, moving quickly, and managing multiple customers at once are skills that all holiday retail workers need to have. If you have a staff that’s honed these skills, you may not need to hire, train, and pay many more workers for the holidays.”

Skew Toward More Flexible Positions

When you’re not sure what your needs will be — but you anticipate them being lighter than usual — you need the ability to be light on your feet. Hiring part-time or temporary workers can give you the freedom to move workers around as needed.

“This will give you the flexibility to adjust your staffing levels based on changes in customer traffic,” says Arno Markus, founder of iCareerSolutions. If demand is higher than expected, you can increase hours for the part-time workers that want them.

This also gives you the opportunity to offer flexible work in an economy where “flexible” is what workers want. Ninety-four percent of workers want flexible hours, according to a survey from Future Forum, a consortium on the future of work.

Hire Strategically

When hiring for an uncertain spending season, you may need to have a few tricks up your sleeve. For instance, consider hiring seasonal workers who can contribute in multiple ways.

“It may make sense to hire someone who has more experience in other areas of the company so that they can take on those extra responsibilities when needed,” says Kimberley Tyler-Smith of Resume Worded.

If you’re hiring fewer workers, it’s also imperative that you screen candidates carefully and make sure you hire well. “In a slower economy, there will be more people vying for seasonal jobs, so it’s important to be selective in order to find the best possible employees,” says Phi Dange, director of home service company Sidepost.

Don’t Skimp Too Much

Even with a predicted slowdown in seasonal spending, dropping your hiring too low can backfire when you don’t have the help you need. Target recently announced that it will hire 100,000 seasonal workers this year — exactly what the major retailer hired last year.

“The holiday season is more about the experience and emotions attached to it, and seasonal team members are an important part of this and are also important to ensure businesses deliver customer needs,” says Adrienne Couch, human resources analyst with business site LLC.services.

Has Seasonal Hiring Been Adequate?

Consider, too, whether your seasonal hiring has been adequate in the past. “I’ve yet to find a retail store that needs to hire seasonal help [manage to] hire an adequate amount of them, leaving even the seasonal helpers overworked and regular employees downright drowning,” says Dragos Badea, CEO of hybrid workforce management company Yarooms. “Regular hiring patterns against slower demand might be a good thing in the long run, as you’ll experience a good deal fewer holiday attrition-style quittings at the peak of the season.”

Amid high inflation, everything—from the price of goods and raw materials to employee wages to interest rates—is going up, up, up. More and more economic indicators hint that a recession is coming. To keep your business healthy, you’ll need to be more efficient when it comes to hiring during a recession.

Monster’s economist Giacomo Santangelo summed up what employers can expect when a recession hits: “What happens during a recession is the economy slows down, production slows down, unemployment increases, which slows down production even further. And that’s where we see GDP falling,” he says. 

Santangelo says employers will need to find ways to cut costs and be more efficient to stay afloat. Below, we outlined some strategic efficiencies employers can consider when managing a workforce and hiring during a recession.

Upskill Employees to Better Meet Market Demand

When a recession hits, Santangelo says the effects are often felt among different industries, companies, or even within organizational departments. Instead of hiring during a recession, companies should consider reskilling or upskilling their existing workforce to meet today’s economic demands as business needs and priorities shift.

Monster’s Future of Work report found that one of the top ways companies plan to stay competitive over the next three years is by offering skills training. After all, it’s cheaper to reskill or upskill a current employee than it is to hire and onboard a new one. 

“When firms need to hire someone new, that’s a new salary, that’s more benefits, and that’s more money you have to spend,” Santangelo says. “But if you have someone on staff already who you can train to do the job, you can expand their responsibilities. If you can do that, you do that.” 

So, if you must make cuts in one area, consider training workers in other departments where you can use good employees who know your business.

Hire Part-Time or Contract Workers

When it comes to hiring during a recession, employers may have to pivot from hiring one full-time worker to fill a role to hiring multiple part-time workers for the same job as a cost-saving measure. “Firms can hire part-time workers, freelancers, who are per diem, or gig economy workers during a recession,” Santangelo says. “They’re a lot cheaper to employ than a full-time worker to whom you have to give benefits.”

Despite the ongoing labor shortages, the barriers for companies tapping into the gig economy could be minimal as we approach a recession. Candidates are more likely to be less picky about the types of jobs they choose. Some workers may even be looking for a side hustle to supplement their income amid high inflation. In fact, a recent survey shows that workers are already moving in this direction. According to the study, 85% of workers said they have increased or plan to increase their amount of gig work, with 58% citing inflation as the reason behind this change.

Switch to Remote Work

If the COVID-19 pandemic taught us anything, select job sectors, especially those in white-collar industries like business, finance, and tech, proved they can be successful when working remotely. “Companies have lots of costs they can cut because they can switch their labor force,” Santangelo says. “We learned they can move a lot of their workforce to work remotely.” 

When planning your hiring strategy for a downturn, consider remote work rather than bringing workers back on-site, where costs like rent and building maintenance can eat away at your bottom line. Remote work saves on overhead costs and can also provide money-saving benefits when it comes to hiring. For instance, remote work can open up your talent pool to workers in other, possibly cheaper locations. With COVID cases on the rise yet again, working from home can help keep your workforce healthy and prevent costly shutdowns in production.

Layoffs May Be Unavoidable for Some

Even when applying the tactics listed above, layoffs are sometimes an inevitable reality of a recession. We saw this during the economic crisis of the 1970s and 80s, and we are seeing it again today with layoffs already announced at companies like Netflix, Carvana, Wells Fargo, and more.

“Right now, we are experiencing an economy that we have not experienced since the 1970s,” Santangelo says. “With increases in gas prices, with increases in food prices, with rationing of certain food items at grocery stores, and a general increase in price levels across the board, employers may be forced to lay off people. Whether you are Walmart or a small mom-and-pop pizzeria around the corner, when the price of your products goes up, and you have bills to pay, you have to lay off people.”

Stay Informed During a Recession

When it comes to hiring during a recession, there are different approaches to take. Depending on your business, some will work better than others, but the key is having current economic information and analysis at your fingertips. That’s where we can help. Stay connected with Monster, and you’ll get free access to expert insights, from the latest in economic trends and news to recruiting advice and strategies.

Labor unions are nothing new. Efforts at unionization date back centuries but became popular in the late 1800s and early 1900s when workers were forced to work more than 8 hours a day, over 40 hours a week for little pay, no benefits, and zero time off. Despite improvements in working conditions, fewer workers (just 10.7%) today are represented by labor unions, down from its peak of 34% in 1954. 

Only now, talks of unionizing are beginning to spread, and employers are starting to take notice. Here’s what you need to know when it comes to unions and how they can impact hiring, wages, and more. 

Where Workers are Unionizing

In certain industries and professions like education, transportation, and nursing, unions have been—and still are—quite common. But as behemoths like Amazon and Starbucks swat off workers’ unions’ demands for better pay and protections, employers may be wondering if they, too, are at risk of seeing similar requests among their own workers. 

Monster’s economist, Giacomo Santangelo, says we won’t see unions formed in every industry or at every company. In these instances where talks of organizing are occurring, he says it’s largely among freelancers, independent contractors, and part-time workers.  

“The reason why unionization was necessary at one point in history was that workers demanded that they be treated well,” Santangelo says. “But in the gig economy, people can actually volunteer to be exploited by their employer. They can voluntarily give up their labor rights. Now, those people who tend to unionize in the gig economy are the ones who have been in the gig economy for a number of years and have realized that this was a choice they made. Now they’re older and they’re going to need healthcare, they’re going to need to start thinking about their future, and this job is not offering them that..” 

How Labor Unions May Affect Wages and Hiring 

Workers’ rights are important, but unionizing may come at a cost that can have adverse effects on the labor market. Santangelo says, “The belief is that unionization is going to raise the cost of production because an organized labor force is going to force a firm to pay benefits and to increase costs above what they should be. Therefore, firms are then going to have to turn around and increase the prices of goods that they’re offering to consumers.” 

This presents a serious issue in today’s economic climate where inflation is already sky high, and wages are rising at their fastest pace in 20 years. Should workers organize, Santangelo says companies will either have to raise prices even further or find ways to cut costs. He says, “Unionization will raise wages above a level that is appropriate and efficient, and it will lead to increases in unemployment.” 

Understand Worker Demands 

No employer wants to see a slowdown in production or be forced to lay off workers as a result of union activity. “It’s important to remember that the only reason why workers want to unionize is that they’re unhappy,” Santangelo says. “They’re unhappy because they’re being asked to do something that they don’t want to do. It’s the definition of exploitation. So, if employers are giving benefits and all the things that workers want, then the workers don’t have to organize.” 

So, what do workers want? Monster’s Future of Work report found that today’s workforce is looking for: 

• Salary protection/fair compensation (up 6% compared to last year)
• Financial compensation beyond salary
• Healthcare benefits
• Flexible work schedules
• Paid time off

Finding balance may be key for employers to maintain production and profits while also keeping workers happy. After all, unions don’t just happen overnight. 

Stay on Top of Labor Market Trends 

Monster aims to provide employers with the insight needed to move forward, whether it involves unionization, recruitment, or management. As you plan your hiring strategy over the next month, check out Monster Intelligence for a deeper dive into data and labor market trends and what they mean for your business. 

A recent Monster poll revealed that 62% of workers are quiet quitting (or have thought about it). This is a term used to describe employees who are just “going through the motions”, so to speak. They’re at work, they’re doing their job, but they don’t seem engaged and they’re definitely not going the extra mile.

Although there’s been a lot of buzz about quiet quitting, not everyone is buying the hype. What if quiet quitting is really just the pendulum swinging from “lean in” culture?

“The term ‘quiet quitting’ is misleading, because it refers to doing exactly what is required of you by your job description, rather than leaning in to take on the extra work of two or more employees just to win favor,” says Sep Niakan, managing broker at CondoBlackBook.com. “It involves establishing a reasonable limit on what an employee will and won’t do.”

Why ‘Quiet Quitting’ Isn’t the Best Term

The problem with “quiet quitting” is that many workers aren’t in danger of leaving — they’re doing what they were hired to do.

Jill Santopietro Panall, a human resources consultant at 21Oak HR Consulting describes quiet quitting as simply not overworking yourself. “Quiet quitting really pertains to people just doing their nine-to-five, and you know what? That’s what you’re going to get from folks who aren’t living to work.”

In a job market with 11.2 million open positions, workers have more power than ever. What that means, in some cases, is that they’d rather not put in the long hours that some employers used to expect.

“This new trend is a response to grind culture, which refers to the mentality that workers have to be switched on, work longer hours and be available to work at all times to achieve success,” says Gareth Hoyle, managing director at search engine marketing firm Marketing Signals. “Quiet quitting is about making a healthy work-life balance and setting boundaries.”

Real Warning Signs

While many HR experts object to the term “quiet quitting,” it’s true that some workers have become disengaged. Those are the workers who aren’t doing their jobs, or they aren’t doing them well.

“In the current economic climate, with wages struggling to keep pace with spiraling inflation and endemic staff shortages causing burnout, I don’t blame some employees for feeling undervalued and becoming increasingly disengaged from their work,” says John Ricco, cofounder of recruiting company Atlantic Group.

Here are some signs that should concern you:

• Lack of communication. Pay attention if an employee stops responding to emails or phone calls for extended periods of time. “It’s usually because they’re starting to mentally check out,” says Bonnie Whitfield, human resources director for vacation site Family Destinations Guide.
• Change of work habits. If your go-getter employee has suddenly pulled back, that’s likely a sign that something’s going on.
• Change in attitude toward others. Is an employee talking badly about co-workers or managers? “This can be a red flag that they no longer care for their work or the company,” Whitfield says.
• Keeping a new schedule. It’s one thing to work your regular hours. It’s another to be consistently late, leave consistently early or take many more sick days.

What Employers Can Do

If an employee seems to have changed their work efforts, there are a few things you can put in place to try to reel them back in:

• Have an open conversation. Does an employee seem unhappy? Ask them about it. “Having that relationship and that culture where people are open to expressing themselves honestly is important,” says Matthew Burr, a human resources consultant in Elmira, N.Y.
• Make sure you’re paying enough. “An employer should first ensure that they are properly compensating employees according to their skills, experience and market rate,” says Adrienne Couch, human resources analyst with business site LLC. Services. “Proper compensation is enough to keep an employee committed and highly performing.”
• Adjust your expectations. What are you expecting of your workers? Is it reasonable? If you’re looking for an employee to be available during off hours and on weekends, or you’re asking them to take on more responsibilities than their job encompasses, you may want to rethink.

If employees are pulling back, it’s time to examine your work practices. “Most of the time, this form of protest arises due to inflexible working conditions, inadequate pay or an insufficient benefits scheme,” says Andrew Gonzales, president of BusinessLoans.com. “Speak with your team directly as soon as you notice the signs of quiet quitting. Otherwise, it could have a serious impact on your business’s longevity.”

Monster’s Quiet Quitting Poll Data

• The clear majority (62%) of workers say that they’re currently quiet quitting (36%) or have thought about it (26%) after learning what the term means.
  • Alarmingly, the top two reasons for workers quiet quitting or thinking about it are feeling burned out (61%) and being underpaid for what they’re asked to do (60%).
  • 58% of workers cite prioritizing work-life balance as their reason for quiet quitting or thinking about it.
• On the other hand, almost 40% of workers are not thinking about quiet quitting.
  • The top reason to avoid quiet quitting is that they like their job and want to exceed expectations (44%).
  • However, 34% think that quiet quitting is just an excuse to be lazy at work and 22% are worried about being fired, laid off or demoted.
• Nearly three-quarters (72%) of workers have been asked to work extra hours outside of their contracted hours.

Source: Monster poll conducted among workers, September 6, 2022