The US economy is showing signs of stabilizing, according to Magnit’s Winter 2023-24 US Labor Market Report

The US economy is showing signs of stabilizing, according to Magnit’s Winter 2023-24 US Labor Market Report

Employment rates in various industries indicate the country is emerging from a “rolling” recession.

Burlingame, California, November 14, 2023(BUSINESS WIRE)– Magnit™, a provider of the Integrated Workforce Management (IWM) platform, today released the results of its Winter 2023-2024 U.S. Labor Market Report. As the workforce evolves amid changing business dynamics, challenges such as labor shortages, pay disparities, and layoffs are likely to persist. However, multiple data points indicate an overall improvement, according to the report. Additionally, the report highlights data-driven strategies organizations can implement to overcome these difficulties and thrive in the new year.

“By closely examining labor market data, we uncovered a more optimistic perception of the path of the U.S. economy,” said Dustin Burgess, senior vice president of strategic consulting at Magnit. “Our hiring processes, voluntary separations, and churn rate data analyzes point to positive shifts ahead, as does the influx of innovation from artificial intelligence. This will be a great time of great opportunity for employers preparing strategies that take advantage of the evolving labor market.”

Key takeaways from the report include:

  • The US economy appears to be poised for a recovery: Employment patterns last year — including an uptick in hiring in the third quarter to levels not seen since last year — point to a “renewed” rather than “deep” recession. While some industries or categories may still experience declines in hiring or layoffs in the coming months, other industries or categories will likely see increases in headcount. For example, layoffs for warehouse worker and material handler roles accounted for 19% of all layoffs between Q3 2022 and Q3 2023, the largest share of any roles. In contrast, hiring in marketing and business development roles reached a two-year high in the third quarter of 2023 after steady gains throughout the same period of the year.

  • Voluntary terminations are on the rise, and companies must prepare for: Voluntary termination rates reached a three-year low in March 2023 but have risen over the past six months. This trend is likely to continue if hiring volumes stabilize or increase in 2024, as Magnit research shows that hiring volume and voluntary separations tend to have a positive relationship.

  • Organizations may want to rethink their approach to layoffs: Magnit data shows that some industries laid off workers only to rebuild a significant portion of that workforce during the same year. For example, despite significant layoffs for warehouse workers and material handler roles, hiring for these roles rose 51% in the third quarter of 2023 compared to the second quarter. This net increase in hiring amounted to 81% of all layoffs for these roles over the previous 12 months combined.

  • Demand for AI skills is on the rise: In 2023, AI skills are breaking free from IT/technology silos, spreading into fields like accounting/finance, engineering, and operations, according to Magnit data. Demand for AI skills is particularly high in software engineering roles, with references to AI in job descriptions increasing from 0.5% in 2019 to 3.3% this year. Magnet estimates that number could nearly double by the end of 2024.

Magnit’s Winter 2023-24 U.S. Labor Market uses billions of data points from hundreds of thousands of workers across 51,000 jobs to uncover trends impacting recruitment, retention and hiring efforts. The company uses proprietary algorithms that aggregate, clean, anonymize, and analyze data from a variety of internal and external sources, including hundreds of customer programs. To learn more about the latest U.S. labor market trends, download the full report.

About Magnit

Magnit™ is a global leader and leader in contingency workforce management. Our industry-leading Integrated Workforce Management (IWM) platform is backed by more than 30 years of innovation, modern software, proven expertise, and world-class data and intelligence. It enables companies to optimize talent and diversity goals while achieving operational and financial success. With Magnit, companies can quickly adapt as the business evolves to grow their expanded workforce with greater flexibility, transparency, and speed. magnetglobal.com

“Magnit” is a trademark or registered trademark of Magnit, LLC. Any trade name, product or service referred to in this document using the name “Magnit” is a trademark and/or property of Magnit, LLC.

View source version on Businesswire.com: https://www.businesswire.com/news/home/20231114366924/en/

Contacts

Claire Redman, Accounts Director
Communications matter
MagnitPR@matternow.com

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