2023 saw a slowdown in hiring across industries with layoffs, workforce reductions and hiring freezes. The tech workforce in particular has been reduced by 10-20%, with a 50% downsizing of tech recruiters. Overall, total hiring slowed to 71.4 million, down from the 2022 record high of 77.2 million. The reduced hiring pace contributed to a total job gain of 3.5 million in 2023, a decrease from the 6.3 million in 2022 and below the 4.1 million in 2021.

However, despite mixed signals, there is hope for improvement in the upcoming months. Recruiters anticipate a difficult year ahead, with 50% of recruiters believing that hiring will be turbulent in 2024 according to Jobvite. Despite these concerns, 86% of HR decision makers remain positive about the future of talent acquisition. The job market is going through a transformative period, but with the resilience and optimism of HR professionals, there is hope for a brighter future in talent acquisition.

The AI Boom

AI has undoubtedly become one of the most talked-about and significant words of 2023, leaving industries with a big question mark. HR leaders are increasingly embracing automation, with 58% of recruiters and HR decision makers are already utilizing AI to enhance their existing recruitment technology stack (Jobvite).

In the realm of recruiting, AI can match resumes, provide initial screening of applicants with chatbots and predictive analytics, and help track applicants. AI and automation may also be used to manage employment records and optimize payroll. When it comes to these tools, it is crucial to thoroughly analyze them, taking into account the potential biases and legal implications. Like any other emerging technology, it is wise to approach AI tools with a critical eye.

Hybrid work

The hybrid work model is becoming the new norm in office spaces, offering the perfect blend of flexibility and customization to cater to diverse tasks and group dynamics. Every workplace culture has its unique set of needs and preferences, and striking the right balance is crucial. For that reason, designing hybrid workspaces with intention is key to maximizing productivity and employee satisfaction.

HR professionals are increasingly finding themselves taking on the role of event planner to create meaningful in-person time for employees. There can be a big learning curve with this new responsibility, and the savvy HR professional will look to event planners and experience designers for inspiration and knowledge.

 As of 2023, 12.7% of full-time employees choose to work from home, while 28.2% opt for a hybrid work arrangement. Despite the growing popularity of remote work, the majority of the workforce (59.1%) still thrives in a traditional office setting.


Upskilling and Continuous Learning

There is no doubt that the last few years have brought about significant changes to the work landscape and many industries across the globe. What work we do and how we do it is changing, and employers and employees are tasked with adapting to the changing times. Upskilling, or continuous education, is going to become key to retaining a flexible workforce.

According to LinkedIn’s 2023 Workplace Learning Report, job skill sets have changed by 25% since 2015 and that rate is projected to double by 2027. Building employee skills today prepares your company for future workplace changes, especially with technology that is constantly evolving. It is also an excellent way to combat the skills gap and improve employee morale.

Diversity, Equity and Inclusion

According to a survey conducted by Jobvite, 75% of HR decision makers stated that their company will prioritize diversity hiring in the upcoming year. Additionally, research shows that 63% of GenZ individuals would choose a company that places emphasis on DEI over one that does not prioritize these values. With GenZ making up a larger and larger portion of the workforce, it becomes increasingly crucial for organizations to focus on building DEI into the workplace and advertising it across the employer brand.

However, a recent survey found that many Americans do not view inclusion, equity and diversity (IE&D) as a top workplace priority. This rising backlash has caused many employers to rethink their IE&D efforts and is leading to the waning popularity of Workplace DEI.

2023 brought many challenges to HR professionals as high-inflation and interest rates caused many industries to cut costs and labor. However, there is optimism that this year will see a more moderate job market, allowing HR professionals to navigate the changing landscape with resilience and strategic planning.

What is the hiring projection for 2024?

With all these factors weighing in what is the big picture regarding recruiting for the year? With consumer spending and job growth likely to slow substantially this year as lower- and middle-income households cope with high interest rates, record credit card debt, still-elevated inflation and dwindling pandemic savings, we may be looking at slowing recruiting despite signs that point to a robust economy. Moody’s Analytics expects the U.S. to add an average of 72,000 jobs a month, down from 255,000 last year and 399,000 in 2022, as a post-pandemic burst in pent-up spending fades further.