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How to Navigate the Great Talent Recession of 2022
Staffing & Recruitment

How to Navigate the Great Talent Recession of 2022

It’s no surprise that America is in the midst of a war on talent. The pandemic, combined with inflation, a rise in consumer spending, supply chain shortages, and an economic boom in 2021 have all culminated in an economy that simply requires more talent demand than what exists in the market—our “talent crisis.”

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Devon Fata
March 21, 2022

It’s no surprise that America is in the midst of a war on talent.  The pandemic, combined with inflation, a rise in consumer spending, supply chain shortages, and an economic boom in 2021 have all culminated in an economy that simply requires more talent demand than what exists in the market—our “talent crisis.”

During a recent macroeconomics conference in Dallas, TX, lead economists spoke on the trends ahead. The general prediction is that economic growth will continue through 2022.  It will stabilize and slow, but slow growth is still growth. So, in theory, there are good days ahead.

But the reality of today is that businesses are finding it increasingly difficult to hire new workers in areas of need.  For the first time ever, the majority of executive teams are citing hiring and retaining talent as their number one area of investment—ahead of technological growth.  Even more surprising, 94% of employers surveyed by the US Chamber of Commerce responded that hiring new workers was either difficult, or very difficult.  There were no recorded responses for normal or not difficult.

The cause? The US Bureau of Labor Statistics (BLS) is reporting some of the lowest numbers of unemployment we’ve seen in the history of the US.  The most recent data is hovering somewhere around three percent.  Through the boom of 2021, we added nearly 4 million jobs to the US labor market, with roughly 11 million still-vacant jobs.

Put simply: for every one (1) job opening on the market, the BLS predicts there is less than one available worker.  Unfortunately for many businesses that means smaller teams, a likelihood of turning down work, layoffs, and slowed progress, and potential closures.

An open note to staffing firms:

I’d like to add my own personal view. As a firm owner myself, I recognize the trials ahead.  Our teams don’t have the ability to magically source for talent.  But, at least at Pixoul, what we do have are teams of dedicated recruiters, AI sourcing algorithms, proprietary databases, candidate texting capabilities, and a host of other tools that allow us to find otherwise illusive candidates.

Perhaps for the first time ever, we have a civic and moral obligation to help businesses find and retain talent.  So please, focus on quality over quantity.  Focus on understanding your client’s needs and hiring employees that have a lasting culture-fit.  Don’t throw candidates at the wall and hope something sticks.  Be intentional with your recommendations—because hiring and training a new wave of workers is the only way to secure America’s economic health in the years to come.

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ABOUT THE AUTHOR
Devon Fata

Devon is the Chief Executive of Pixoul LLC. He works closely with clients to explore new ways to capture key performance objectives, build habit-forming products, and improve digital product ROIs.

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