What Job Market?

Disconnect: An instance of disconnecting or being disconnected.

 

With a 3.7% unemployment rate and 30% more job openings than there are unemployed people, one might well conclude that the job market is great.  But that glowing big picture looks very different at ground level. There’s an old saying that “all politics are local”.  The same could be said when it comes to jobs.  All job markets are local.  And in addition to being local, they are specific, specific with regard to industry and function.  So, there is not one “Job Market”.   In fact, there are thousands of job markets just in the United States. 

 

The job market I know best is the one for transportation/logistics management and executive talent.  And even within that space, there are “job markets”.  Markets segmented by service offering, geography, commodity, equipment types and job functions.   So, when someone asks “How’s the job market”, my response is usually “Depends on which one you’re talking about.”

 

That said, there are clearly factors which impact the overall job market across the nation and certainly for specific industry segments.  In 2024, for the transportation/logistics industry it’s mostly about the economy.  Demand is down, rates are down and post-covid/inflation driven costs are up.   We are in the middle of “the great capacity reset”.  This time next year there will be fewer trucks in service.  It’s also likely there will be fewer freight brokers in the market.  (And probably fewer headhunters).  Companies are in “hunker down”/cost containment mode.  They are hiring only when there is a real, immediate need and only using search firms when other options are not working.   It is what it is…but this too shall pass.

 

And when it does, we will be left with much larger, long-term job market issues.  Some of these will have a disproportionate impact on the transportation/logistics job market.  Demographics is a big one.  While the USA’s demographic profile is not as challenging as Western Europe’s, we are still facing a shortage of younger workers.  And it’s an even bigger issue for the transport/logistics sector.  Not only do we have a shortage of drivers, maintenance technicians and warehouse workers; it has become increasingly difficult to hire and develop talent for leadership positions.  This is forcing changes on an industry that tends to resist change when it comes to workloads, working hours and work locations.  But it’s also an industry that cannot afford to just pay people more for the same old working arrangements. New technologies and innovation will take over some of the work.  But the industry will continue to be relatively people intensive.  Hiring and retaining the best people will be the key to success.

 

And many of these people are now chasing that elusive dream of work-life balance.  Work-life balance means different things to different people.  And rarely does it mean the same thing to your boss as it does to you.  But if you’re the boss and you want to hire and retain people, you best pay attention.  Work-life balance is a real thing and it’s not going away.  This will translate to more remote or hybrid work arrangements, better benefits and increased PTO. 

 

Today’s workers are also less inclined to frequently relocate for work and if they do relocate it tends to be to a place of their choosing that accommodates a spouse/partner’s career and/or meets other nonwork-related concerns.  So, promotions that involve relocation or might disrupt work-life balance are not a big motivator these days.

Lastly and perhaps most importantly, people are less inclined to feel a sense of loyalty or attachment to a company.  They may actually like their job and even develop meaningful relationships with co-workers, but most folks really don’t trust their employers.  In fact, the more companies talk about putting their people first, the less their people believe it unless there is compelling evidence to support such claims.  Free T-shirts and company picnics just aren’t what they used to be.  Show them the money and a consistently positive work environment and they might just stay awhile.

 

So back to that question, “How’s the Job Market?”.  The best answer might be “Disconnected”.   Employees want better pay and benefits and they want a life outside of work.  Employers want productivity and a fair return on their investment.  Work-life balance is a two-way street. Organizations that find ways to “connect” with their people will be the winners.