The recruiting industry is a fast-moving and fast-changing industry. We are constantly chasing the latest trends to stay competitive - from the latest technology, to altering the way we engage with candidates, to the evolving interview process. While remaining aware of the the best resources within the industry is important, these are still just reactions to the bigger shifts going on in the world.
It is important to take a step back and realize what is causing the trends we see within our industry. This helps us to see more long term and be better prepared for oncoming changes. From inside the industry, we see three major influences on recruitment. They are economy, technology and population demographics.
Economy
The economy is currently booming which leads to exceptionally high employment rates. Today in the United States, the employment rate is the highest it has been since the 1960's (Jobvite). Production is up so workers are in demand and this makes it a candidate's market. This requires a specific style of recruiting where hiring costs and the amount of time it takes to hire are high. In a candidate's market, the quality and retention of employees are the priority.
Knowing how the economy affects the job market, and ultimately recruitment, means that a shift in the economy creates a shift in recruitment. Poor economic times with high unemployment bring about a very different recruitment style and so being aware of the signs of the state of the economy is important for recruiters.
Technology
Advancement in technology has a major effect on the labor market. Think about when Henry Ford developed the assembly line, and the affect this has had on not only manufacturing as a whole, but on the labour demands as a result of increased productivity and thus recruitment. In today's world, there is a major discussion on A.I. and the influence this has on not only the amount of jobs this will create and take away, but also the type of jobs we will see opening up.
Technology continues to advance and this means it is difficult to guess what types of jobs will be in demand in the future and what type of skills will be necessary. For recruiters, this means we must be able to adapt. We must be flexible and keep an open mind when it comes to new technology and the new roles that are being created because of it.
Population
In 2018, there were more job openings than there were people to fill them in the United States (Jobvite). Our population is also aging. By 2030, all baby boomers will be at retirement age and there will be more older people than children for the first time in U.S. history (census.gov). To some degree, these numbers will be offset by immigration. This will have a significant impact on job openings, competition for workers, and recruitment as a whole.
It is difficult to guess what kind of changes we will see in these three areas, even in the near future. It becomes even more difficult to guess when you realize how these three areas also influence each other. However, keeping your finger on the pulse as a recruiter can only benefit you and your business.