Join America Back to Work, a weekly podcast, video, and blog series that covers timely and relevant topics affecting the labor market and workforce with industry experts. The series includes recruiting, hiring, retention, employee satisfaction, customer service, background screenings, and more.
The S2Verify Holiday Hiring Report: A Window of Opportunity
To hire or not to hire–that is the question stumping hiring teams across the country this holiday season.
Usually, businesses expand their staff for the holidays.
U.S. Labor Department data shows that employment in the retail sector typically swells by 450,000 workers during the holiday shopping season, while warehousing and delivery add 350,000 workers (the two primary drivers of the seasonal hiring surge).
But, this year, there are added factors to consider–such as inflation, an impending recession, and a labor market that continues to favor workers.
Update: The State of Labor
Things were looking up for employers in September: the labor market appeared to be cooling, and job openings dropped drastically.
The November report from the U.S. Bureau of Labor Statistics showed rising demand once again with the addition of 263,000 jobs. December is likely to follow a similar constrictive trend.
Further, unemployment reached 3.7% in October and has remained relatively unchanged since March–keeping labor conditions tight.
This data leaves employers in a tough spot when it comes to determining how to expand their workforce this holiday season.
The Pros and Cons of 2022 Holiday Hiring
On one hand, hiring teams are inclined to proceed tentatively under the shadow that is the impending economic downturn.
Consumers behave differently under recessionary circumstances like these–they tend to cool their spending as rising interest rates make debt costlier and rising inflation increases the cost of living, leaving employers vulnerable to overhiring and overspending.
On the other hand, employers (the recruiting, hiring, and HR professionals that bring on new talent) need to move quickly to lock down top candidates in this unusually tight job seeker market.
If consumer demand remains strong this holiday season, businesses need to be able to keep up, so they don’t leave money on the table and lose out to competitors.
Inflation as Opportunity
However, consumers are workers, and that means inflation works in two ways.
In addition to a consistent unemployment rate, the labor force participation rate has remained largely unchanged (and low) this year. Colloquially called The Great Resignation or The Great Rethink, this workforce deficit is driving the labor market’s tightness.
But, inflation (and increasing interest rates) might be the push American employees need to get back to work.
Motivated by rising household costs and other inflation concerns, many people want to increase their spending by taking on extra work this holiday season and beyond.
A new report from Indeed Hiring Lab shows that more people–33% more to be exact–are considering a seasonal job compared to last year (or even 2020) to get a little more cash in their pockets. According to leading job search platform Monster, 73% of workers surveyed this month said they need additional income because of inflation and the current economy.
Ultimately, rising inflation and impending recession will likely incentivize sitting talent to rejoin the workforce, making it the perfect time to sweep up top candidates–the candidates more likely to stay.
The Key to Holiday Hiring: Background Screening
On that note, don’t forget to practice our top tips for retention-friendly hiring if you choose to move forward with holiday hiring.
Though the timing is ripe to beat competitors to top talent (spooked employers are slowing their hiring operations while highly-motivated candidates are entering the labor market), it’s still key to make the right hire for the long term.
Retention is king, after all, in a tight labor market with unusually high turnover cost.
At the top of our recs: team up with a best-in-class employment screening platform that expedites background checks, employment verifications, references, and more!
Thorough background screening is the key to making a great hire during the holidays, and industry-leading pre-employment platforms like S2Verify can help you vet candidates effectively, while still providing a top-notch hiring experience that gets candidates through the door.
From all of us here at S2Verify, we’re wishing you a safe, healthy, and joyful holiday season filled with good food, good fun, and…great new hires!