The 2023 Outlook for Labor Supply and Demand

As the new year approaches, prognosticators everywhere want to know what trends we can expect to see in the job and labor market going forward. Will 2023 bring more supply and less demand? Or will it be home to more challenges and shortages of skilled workers?

Experts are once again predicting that businesses will face greater demand for workers than available talent. This may lead to more out-of-town or overseas hires, remote work and outsourcing, and even reduction in products and services offered.

Likewise, more companies will focus on developing the talent they already have—teaching new skills to current workers—to bridge the tight labor market. Training and talent development can help cover current gaps and increase worker productivity and satisfaction.

In addition, companies everywhere must focus on outreach and branding to continue to attract the best and brightest talent. Innovation is and will be the name of the game in the 2023 job market.

While it is never easy to precisely pinpoint what a new year and a new season will bring, most labor market experts today anticipate another lean year where businesses are short on workers and long on need. Companies that can creatively weather the storm will rise to the top.

Trends for 2022 in the Staffing World

Needless to say, 2021 has been a year to remember in the staffing industry. From the Great Resignation to continued working from home, the industry has been forced to adjust, evolve and remain on its toes. The next year will bring more of the same and some new trends worth paying attention to:

Flexible work arrangements remain a top priority. As more workers opted for part-time or gig work, companies had to scramble to raise salaries, offer incentives and make flexible working arrangements even more flexible. In 2022 and beyond, remote work will be a must for many employees, and companies will need to determine how to manage both on-site and at-home workers with hybrid schedules and flexible hours. In a nutshell, employers will need to focus on creating an outstanding environment to attract and retain top talent.

Diversity, equity and inclusion matter more than ever. “DEI” can’t just be a buzzword in organizations—it is more critical than ever to walk the talk and make diversity a top priority. Most employees today want to work for companies that share and work towards their DEI goals, yet many say they lack confidence in their employers’ commitment to diversity, equity and inclusion in the workforce. Companies that get this right will stand out from the crowd.

Community-building gets creative. With more employees working remotely, building community is more challenging—but no less important. Likewise, team members’ mental health and well-being should be just as important to companies as their job performance. From virtual networks to Q and A sessions, employees want to build a sense of community at work.

And, not surprisingly, hiring challenges aren’t going away. Creative recruiters and companies are pursuing recently retired workers, for example, to fill openings and bring back expertise.