The labor market is tightening, while AI is reshaping hiring processes
Workday, a leading provider of solutions that help organizations manage their people and finances, has published its bi-annual Global Workforce Report. This shows that it is currently an employer's market as the number of applications is growing four times faster than the number of job requirements. Nevertheless, top talent is quitting their jobs to look for better opportunities. At the same time, companies are increasingly turning to artificial intelligence (AI) to find and retain the best talent.
The key findings of the Workday Global Workforce Report for the first half of 2024
- It is becoming more difficult to find a new job: The increase in applications (31%) far exceeds job growth (7%) compared to the first half of 2023.
- Top employees leave the company first: In 75% of the sectors surveyed, voluntary redundancies by top performers have increased.
- AI is becoming an indispensable tool for HR teams: 77% of companies plan to increase the use of AI in recruitment in the coming year.
- Meaningful work leads to a stronger sense of fulfillment and loyalty: Workers who feel they are doing meaningful work feel 37% more fulfilled than those who do not - even with a heavy workload.
Workday Recruiting customers processed around 19 million job requisitions in the first half of 2024 - an increase of 7% year-on-year - and processed 173 million applications, an increase of 31%. Although the labor market is growing, it is becoming increasingly competitive for job seekers. This trend could intensify if job growth slows and unemployment continues to rise in the US and globally.
"The job market is changing in favor of employers, but at the same time, employees are becoming more assertive in their demands - competitive wages, clear opportunities for advancement and meaningful work are critical," says Alexandra Hartung, Head of Midmarket at Workday. "Managers need to help their employees find meaning in their work to retain the best talent to drive the success of the business."
Labor market trends in the DACH region: focus on Germany and Switzerland
Among the countries outside the USA that received the most job requests, applications and employment contracts in the first half of 2024, Germany and Switzerland led the way alongside Spain and France:
Germany:
- 402,000 Job requirements (+12%)
- 2.6 million applications (+3%)
- 177,000 job vacancies/employment contracts (+3%)
Despite the general economic downturn, there is still a significant shortage of skilled workers in some sectors, particularly in information technology, engineering and healthcare. This offers new opportunities for qualified personnel in these sectors. In addition, Germany has one of the lowest unemployment rates of all OECD countries at 3.3%.
This low unemployment rate makes it easier for employers to find suitable candidates for vacancies. According to OECD forecasts, Germany will remain one of the slowest growing industrialized nations until at least 2025. This year, gross domestic product is expected to grow by just 0.1%.
Switzerland:
- 215,000 Job requirements (+14%)
- 1.3 million applications (+12%)
- 112,000 job vacancies/employment contracts (+38%)
Compared to many other countries, the Swiss labor market remains positive. Job creation has increased, particularly in the service sector, and the unemployment rate remains low.
About this report
The findings of the Global Workforce Report (formerly known as the Workday Hiring and Talent Trends Report) were drawn from Workday Peakon Employee Voice, Workday People Analytics, Workday Recruiting and HiredScore. Third-party data is based on a Workday-commissioned survey conducted by independent market research firm Hanover Research. 1000 respondents were surveyed in July 2024.
Source: www.workday.ch
