In recent years, real wage growth (after considering inflation) has slowed down in the United States. Economists and analysts attribute this to a variety of factors, including low productivity growth, demographic shifts, and global competition. This has also had an impact on the economy and interest rates, which in turn affect hiring as companies struggle to attract candidates to fill their staffing needs. Connecting with a staffing and recruiting firm such as Abel Personnel, a WBE business based in Harrisburg, is an essential strategy in uncertain economic conditions.
Recent data from 2021 and 2022 shows that the U.S. economy is still grappling with the aftermath of the COVID-19 pandemic. Although the economy saw a growth of 6.7% in 2021, many industries are still struggling to recover. One year later, wages only grew 4.2% in 2022 according to the Society for Human Resource Management (SHRM). The administrative, IT, and other sectors impacted by the pandemic are experiencing slower growth rates. The retail industry continues to be hit hard as well. Due to these challenges, companies have been hesitant to increase wages and have resorted to cost-cutting measures to stay competitive. Despite the positive growth in 2021, the economic recovery remains fragile. As a result, companies across all industries are proceeding with caution as they navigate the ongoing uncertainties of the pandemic.
Interest rates have also been a major factor in the current economic climate. The Federal Reserve has raised rates several times in the past twelve months, which has made borrowing more expensive for businesses. This has led to a decrease in investment and has made it harder for companies to expand and hire new employees.
Slow real wage growth and economic uncertainty have made it more difficult for companies to find the right candidates to fill their staffing needs. This has led to increased competition for talent, with companies may feel the need to offer more attractive benefits packages and higher salaries to attract top talent. To navigate this challenging environment, companies must be proactive in finding a staffing agency to help with their hiring strategies. Staffing agencies focus on building relationships with potential candidates and have access to a large database of locally qualified candidates, making it easier for companies to find the right employees for their staffing needs. With their expertise and industry knowledge, staffing agencies can help companies remain competitive by providing access to top talent, even during challenging times.
Moreover, staffing agencies offer a range of benefits beyond just providing access to a pool of candidates. They can help businesses streamline the hiring process, assist with employee relations, and manage payroll and benefits. These services can significantly reduce the burden on businesses and allow them to focus on other critical aspects of their operations.
In conclusion, the current economic climate has made it challenging for companies to find the right employees to fill their staffing needs. However, by partnering with a staffing agency, businesses can gain access to a large pool of qualified candidates and other valuable services that can help them remain competitive. With their industry knowledge and expertise, staffing agencies can help businesses navigate the current hiring landscape and find top talent, regardless of economic conditions. Although outsourcing staffing services may seem contradictory during a time when businesses are cutting costs, the data indicates that the time and resources that a staffing agency saves their clients is incredibly valuable.
Bureau of Labor Statistics. (2020). Employment Situation Summary.
Federal Reserve Bank of St. Louis. (2020). Federal Funds Rate – 62 Year Historical Chart.
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Congressional Budget Office
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“Administrative Services Market Global Report 2021: COVID-19 Impact and Recovery to 2030,”
Research and Markets
“2021 US Retail Industry Outlook: Accelerated Transformation in a Post-Pandemic World,” Deloitte