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.
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