We recently wrote about a labour market trend called The Great Unbossing, and in the past month, some new trends have been emerging in the American market. These trends point to significant job market changes affecting leadership positions, particularly white-collar workers. Unlike The Great Unbossing, however, these changes also impact young people entering the workforce. We provide an overview of the latest phenomena and trends that could shape job hunting in Europe and Croatia.
Employers tighten hiring criteria
Korn Ferry, a leading American consulting firm in organizational management, recently observed an interesting paradox. HR professionals have noted many open positions, yet significant challenges for job seekers, especially those seeking white-collar positions.
It seems employers are becoming more precise and demanding in their hiring criteria, seeking candidates who perfectly match their specifications. This Laser-Like Hiring aims to find the ideal candidate but often results in extremely long recruitment processes and unfilled positions.
This trend is the reason job seekers face frustration due to strict requirements and difficulty finding new employment, despite an apparent abundance of opportunities. Employment data in the United States show high numbers of open positions, but the reality for many job seekers feels like the recession period. This paradoxical situation leads to mutual frustration among both employers and job seekers.
In the European Union, blue-collar positions are in high demand
These trends are not yet mentioned in the context of European and Croatian job markets, but some signs indicate a similar situation as in the States. According to Eurostat, the most sought-after jobs in the EU in online advertisements in 2023 are in manufacturing, sales, and logistics. This shows that a significant portion of new job openings in the EU are blue-collar positions, potentially creating a similar illusion as seen in the USA.
It seems there are many open job positions and employment opportunities, but employees are still dissatisfied due to long and exhausting job search processes. As a result, organizations and employees increasingly rely on HR services such as Market Mapping and Salary Research, which provide detailed insights into the job market and specific industries. These services help companies and individuals position themselves better and adjust their expectations and budgets for various job positions.
Do young people have enough career opportunities?
Another challenge in the American job market is the White-Collar Job Rut. The Wall Street Journal writes about this phenomenon affecting college-educated workers, particularly young people just entering the workforce.
Companies are increasingly reducing the opening of new specialized, senior and executive positions. Instead, they are focusing on automation and shifting towards operational and service roles. They are opening more commercial positions that involve direct contact with customers and clients, directly contributing to operational efficiency and customer experience.
Additionally, The Great Unbossing and recent mass layoffs in various industries, especially the IT sector, have increased the number of professionals in the job market. Consequently, these professionals are often filling positions that were previously available to younger people with less work experience. Therefore, it is not surprising that these trends particularly affect highly educated young people looking for their first job.
Young people can influence their career paths even as students
Despite the numerous opportunities the job market offers to young people, new trends have brought different challenges that make (first) employment more difficult. There are still entry-level positions available, but the competition is more intense than ever.
Young professionals can respond to increasing competition and precision in employers' criteria by continuously improving and adapting to changes. They should actively plan their careers and develop the most sought-after skills. Career catapult, an innovative career development program, can help students better understand their potential and the needs of the job market. This program prepares them for the future and helps them successfully start their professional careers.
Adaptability is key to career advancement
A job market characterized by Laser-Like Hiring, the White-Collar Job Rut, and The Great Unbossing requires workers to quickly adapt to new conditions. To remain competitive in such a dynamic environment, employees need to be flexible and continuously invest in professional development. They should consider the current market needs and approach them proactively. In this process, employees should not fear changes or career switches.
Besides continuously improving skills in their current field, employees should consider the possibility of a career switch to take advantage of new opportunities and adapt to market demands. This is especially important in highly competitive fields such as technical consulting and engineering, which often require very specific talents.
In such a dynamic job market, employees must build stress resilience caused by uncertainty and various professional and personal challenges. Therefore, companies that care about the mental health of their employees raise awareness about the consequences of stress and burnout, encourage discussions on well-being topics, and educate employees through programs like the Future Resilience. Through education and psychological support, the program helps employees cope with unpredictable situations.
Despite the challenges, a flexible and adaptable job market can encourage professional development and satisfaction for both employers and employees. HR consultants play a significant role in utilizing these trends and helping organizations navigate the changing job market. Executive Search Recruitment presents companies with labor market trends and current conditions for hiring highly qualified professionals for executive positions. They also advise companies on the best approaches and strategies for candidate selection. This allows employers to make informed decisions and attract top talent to their organizations.
If you want to be prepared for new challenges in the job market, hire excellent professionals, and ensure your organization's growth towards greater competitiveness and profitability, contact us!
