2021 Job Market Review: Main Changes and What to Expect in 2022
By now you’ve probably read a ton of year recaps, and might be tired of reading them.. No panic, I hear you!
"Instead of doing my personal 2021 review, why don’t I do a job market recap" - I thought. We are definitely witnessing a few interesting plot twists (what a time to be alive, eh?)
I've captured the most interesting and the most drastic ones, enjoy!
As opposed to 2020 with its mass layoffs and lack of jobs, 2021 was extremely busy for both employers and employees. We are seeing a spike of new vacancies, creation of brand new roles, and combining two roles into one (e.g. Project Manager/Business Analyst, Product Owner/Scrum Master, HR/Recruiter, SDR/Consultant etc)
2020 proved drastic instability of some industries, and many people who worked in retail, tourism and catering decided to change careers. Obviously, not everyone was ready to commit to a few years at a college or university, many opted for bootcamps and quick up/reskilling courses, which teach the basics and leave the most for self-learning. This resulted in poor interviews, faking experience and profiteering of scammers.
We see a candidates market in all its glory. Hiring constraints and competition have affected both corporations and startups in the same way. Overwhelming number of job slots and remote opportunities that allow hiring people irrespective of location, immediately brought up the salaries (as per Mercer&Marsh: US wages jumped by the most in record dating back 20 years). Shortage of talents brings overpaying unqualified people, uncontrolled turnovers and constant counteroffers. Along with that, more and more employers give preference to versatile professionals, so called one man army. Competition shortens hiring cycles to 2-4 steps max. Recruiters and staffing agencies are overwhelmed, but are in a brisk demand! :)
There is currently a lot of pressure on employers, who operate in a very unstable situation. It became difficult to do budget and hiring projections: their planning horizon has significantly decreased. Due to this, more and more employers offer contracts instead of full-time employment, almost 80% execute contracts for probation period.
Great resignation - a new 'trend' that was born in 2021, which was caused by a few factors. First quit their jobs the employees of those companies who imposed them back to the office. Second came those who were given double work after mass layoffs and ended up burning out. Third, the market was evolving so quickly that some workers simply couldn't resist to multiple opportunities that current employer was unwilling or unable to provide.
Last but not least: stress and mental health issues. According to Mercer&Marsh's study, 1 out 4 US workers claimed they were highly stressed. Boundaries between work and life are getting even more blurred, which cause mental health struggles and burnouts. From my personal perception and professional opinion, this issue is more PR-ed right now than taken real actions on. Companies claim to be more mindful about mental health of their employees (extra days off, digital detox days, 4-days work week etc), but no business will jeopardize its operations by going too far. So, we’ll see.
I wish us all a bright and productive 2022! Paraphrasing Adele "2022, please go easy on us!" :)