The economy’s not in a recession, but the job market sure feels like we’re recovering from one.
The labor market’s lack of movement, dubbed a “Great Freeze,” is becoming reminiscent of job availability following the 2008 financial crisis, writes BI’s Madison Hoff.
The hiring rate in August was just 3.2%, a big drop off from the 4.6% rate in late 2021 as the economy was reopening. The last time hiring was consistently that low was in the early 2010s when the jobs market was still recovering from the Great Recession.
The silver lining is that unemployment has remained relatively low, especially compared to the recovery from the Great Recession. But the unique setup of having both a low hiring rate AND unemployment still presents a few problems.
First, it means people are staying put, or “job hugging.” It’s reminiscent of the current housing market, where homeowners who might want to sell their current home are refusing to do so because they’re locked into an ultra-low rate. (Must be nice!)
There are also the youngsters to consider. For those of us with a job, the Great Freeze is manageable, albeit annoying. But many recent college grads don’t have that same benefit, and this spring will bring a whole new crop looking to enter the workforce.
Finally, there are the broader implications of what enables a low-hiring, low-unemployment environment to even exist. For some companies, the promise of AI efficiencies could be giving them pause about staffing up.
If you’re hoping to get some sympathy from the higher-ups, think again. CEOs are the one group that isn’t holding onto jobs, writes BI’s Tim Paradis.
It’s not all bad news.
Some hiring is still taking place. And if anyone knows who is on the hunt for workers, it’s recruiters.
Lucky for you, we’ve done some of the legwork. With the help of Plan-A Insights, BI compiled a list of the top 750 recruiting firms in the US.
These recruiters cover a wide range of industries. The list was compiled using a survey of approximately 22,000 professionals who evaluated these firms on several key factors. (If you’re really interested in the methodology, we break it all down.)
Still, maybe you’re just burned out from the corporate life (or not even looking to get started in it). One of the benefits of the 2008 financial crisis was the innovation it inspired in some people. There’s no better motivation to start your own business than having no other options.
And, love it or hate it, AI has made it easier to spin up an idea that previously would have required more work.
If you’re going to go it alone, BI’s Kathleen Elkins has some good insight. She spoke to several successful entrepreneurs and business owners about how to get their idea off the ground.
