Current Trends In The Labor Market
Labor and work as we know it is undergoing a massive shift. The dynamics of the labor market have changed drastically, and it is becoming increasingly easy to get left behind. It’s as though there is increased unemployment, and at the same time, some job openings are available for long periods because of lack of specialized talent.
The skill level that used to be enough to navigate the labor market in the past has become inadequate for the current requirements!
Furthermore, socio-cultural issues arising every day in areas of inclusion and representation has made the recruitment process a bit more complex.
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Aging Populations
Most developed countries are witnessing a progressive drop in their working population. Germany, U.S, and Japan are predicted to have a relatively thin labor force in the next 15 years. This is due to their fast aging population. This could pose a recruitment problem in the future. However, the possibilities of remote working have made it easier to have employees from different parts of the world. A large number of talented young people mostly from developing countries have been hired through this process! Migration is currently being encouraged in some developed countries to support their labor force.
More Opportunities, Fewer Skills
Employment seekers now have a lot of different opportunities for work, as the labor market has become more talent oriented. These days, it is more about what skills a person has before any other qualities. Even though there are various opportunities, the skills, and talent required of job seekers these days are far less. With the technological advances of the fourth industrial revolution and groundbreaking innovations like robotic automation, Internet of Things and Artificial Intelligence, the skills in demand are quite a few, though the openings are numerous.
Industry 4.0
The fourth industrial revolution will ultimately usher out a lot of jobs that we know today. Most jobs are increasingly being computerized. It’s not all bad news though, because this shift can also be described as the ushering in of a period of dominance for another industry. As an example, there is a drastic reduction in record store sales. These figures are expected to plummet even further in the coming years. However, it is being replaced by streaming services. What this means essentially is this: Consumer demand is not reducing; it is the method of supply that is changing. In the music example, record store staff numbers will drop, but there is a corresponding increase in the people working for the streaming companies.
Data
Considering the current mode of operation of most companies, there is a high possibility of proliferation of databases, because most of the data and information are usually accessible from different locations. This makes it possible for hackers and other criminals to take advantage.
It has become most crucial to have a thorough check on prospective employees and contractors before they are hired. The recruitment process can be said to be experiencing the best period in its history. Never before has so much data and information been available to guide in the process of employing new teams. Companies can more accurately predict people that would generate high returns if employed.
A lot of change is currently going on, which comes with pros and cons.
All that is required are those flexible individuals that can adapt to change; learn, unlearn and relearn.
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