The music is fading out, and the party’s almost over. Up until about six months ago, the job market was blazing hot. Companies couldn’t find, recruit and onboard candidates fast enough to satiate demand. Businesses had difficulty retaining people, as they’d freely switch jobs to obtain better offers and higher compensation.
With record-level inflation rates, rising costs and a contracting economy, the job market is losing its luster. The September jobs report indicated that the Federal Reserve Bank’s program to fight inflation has taken a toll on hiring. The number of new jobs created, while solid, is still far below July and August—showing a slowdown in hiring.
The Days Of Quitting Without Worry Are Gone
You now need to think very deliberately about your job, career and how to navigate the next year or so, which will likely be volatile. Job offers won’t be as lush as they were in 2021. If you can’t get the base salary, bonus and stock options you want, look into the benefits to see if there are other ways that you can benefit with a job switch.
Here are suggestions of what you should do to navigate your career during challenging times:
- If you like working at your company, do everything in your power to make yourself useful and indispensable.
- When searching for a new job, conduct an inordinate amount of research to know what you’re getting yourself into.
- Find recruiters who specialize in your field, as they have close connections with the human resources and hiring managers, can advise you throughout the interview process and know about roles in the hidden job market.
- Look into hiring a career coach and résumé writer to help you, especially if you haven’t been on a job hunt in a long time.
- Put together an elevator pitch, role-play interviewing and prepare answers to commonly asked questions.
- Get active on LinkedIn to be noticed. Cultivate a network of like-minded people to help you find job leads and make introductions to the target companies you want to work with.
- Consider going back to school or taking online courses to learn new skills.
- Be mentally and emotionally prepared for a long, drawn-out interview process. There will now be more applicants searching for jobs. Businesses will feel they can take their time waiting to hire the best person at the lowest salary.
- Clear your head and carefully consider why you are leaving your current job.
- Don’t quit your job unless you have a job already lined up.
- Everyone will tell you what to do. Be skeptical of who is offering career advice.
- Pivot to a fast-growing industry or reinvent yourself by learning new skills.
- Don’t blindly accept a bad offer with a company and people you’re not comfortable with. Instead, weigh your options and think rationally.
- Break your negative thinking. You won’t interview well if you bring the baggage from your last firm to the interview. No one wants to hire a person who bad mouths their former boss and co-workers. Nor do they want a person who is negative and bitter.
- Make sure you know if there is a work-life balance at the company you’re considering moving to. Inquire if it’s a remote, hybrid or in-office work style.
- Reduce your expenses, put money into an emergency fund and pay down high-interest-rate debt.
Data Shows White-Collar Workers Are Staying Put
The latest World Economic Forum Chief Economists Outlook report contends that a worldwide recession is “somewhat likely” and almost unanimously predicts wages won’t be able to keep up with escalating prices. According to new data from LinkedIn’s Workforce Confidence Index, pessimism prevails. Almost 50% of active job hunters self-reported that they lack confidence in their company and overall workforce. Even though the workers registered their discontent, many are holding back hunting for a new role. The Wall Street Journal reported that white-collar professionals are hanging onto their jobs and not joining the Great Resignation trend compared to frontline and other deskless workers.
There are concerns over a possible recession, hiring freezes and layoffs at companies ranging across all sectors. There have been announcements from a wide array of companies and sectors, including Bed Bath & Beyond cutting 20% of its corporate staff, Snap laying off 20% of staff and Ford jettisoning 3,000 salaried and contract workers in the United States, Canada and India. Boston-based online retailer Wayfair cut 870 jobs worldwide. Apple laid off about 100 contract-based recruiters. Walmart downsized around 200 corporate employees and online brokerage Robinhood parted ways with 23% of its staff.
How The U.S. Got To This Point
Starting with the financial crisis, the Federal Reserve Bank made accommodations to financially support the economy and stock market. Its policies remained largely the same leading up to the current Federal Bank Chair Jerome Powell.
During the pandemic, the Fed enacted policies, along with the government, to inject trillions of dollars into the economy, along with other measures to provide much-needed funds to families and stimulus to keep the economy afloat and people from losing their jobs. One of the results was the creation of massive bubbles in the stock and cryptocurrency markets, as well as venture-funded startups.
Now, Americans are paying the price for the bursting of the bubble. The programs led to runaway inflation, which has created another tax on people and companies. As costs rise, businesses raise their prices and families struggle.
Something needed to give. It started with hiring freezes and job cuts. This is likely to continue until the government can figure out some way to extricate the U.S. from the current environment, which may include a recession, high inflation and possible stagflation.
Source: Forbes
