August 13, 2024
For Employers, It’s a Buyer’s Market
This year, I’ve been spending a lot more time talking with job seekers. At the height of the pandemic hiring boom, I heard from roughly one job seeker a week, sometimes less. This year I’m hearing from five or six people every day. I’m also talking with more candidates who have been actively looking for a long time.
What’s going on? Job seekers tell me the employment market is much softer than a few years ago. Indeed, there is evidence that the market for professional workers is weaker than the overall unemployment numbers. Business Insider dubbed the current environment a “white collar recession,” and NBC News highlighted the softening market for professionals.
Who’s Feeling the Pain?
In the medtech world in which I work, the pain is concentrated in these areas:
- Startups, which are experiencing the worst business conditions since the financial crisis. Only the very best startups are getting funded. For people who work at startup companies, the environment feels terrible because it is.
- Money-losing microcaps, which have suffered due to the higher cost of money and a stock market that is punishing poor financial performance.
- Mid-level managers (directors and senior directors) at medium and large companies. Those companies are doing just fine, but many have trimmed pandemic excesses in hiring. Mid-level managers have borne the brunt of these cost-cutting efforts.
What it Means for Employers
All of this means opportunity for companies that need to recruit. It’s the most favorable environment for hiring people since 2019. The quality and quantity of candidates has not been better in years, so it’s a great time to upgrade talent or those difficult to fill positions.
This is a temporary situation that won’t last. Good economic news (especially on interest rates) will tighten the market quickly.
Is your company taking advantage of this buyer’s market? If you need people, there’s no better time to recruit them than right now.
