What Hiring Managers Can Learn from the 2024 U.S. Chamber of Commerce State of American Business Report
What Hiring Managers Can Learn from the 2024 U.S. Chamber of Commerce State of American Business Report
As some industries finally feel the dust of the pandemic beginning to settle, the U.S. Chamber of Commerce (a private, non-profit organization dedicated to supporting entrepreneurship) has published its 2024 “State of American Business” data. Ample expert analysis of the data from commercial and economic perspectives followed its early January release, but is there anything there for hiring managers to learn from?
In general, the Chamber’s State of American Business 2024 report encapsulates the resilience of the American economy in the face of the most serious viral pandemic in a century and attributes much of the post-pandemic recovery to the strength and adaptability of the private sector. Those of us in the field of hiring and recruiting, of course, know that the strength and adaptability of our organizations are only equal to the strength and adaptability of our staff.
The U.S. Chamber of Commerce’s Chief Economist, Curtis Dubay, used the report as a chance to emphasize the remarkable growth experienced in some areas despite widespread economic concerns. He attributed this growth to the responsiveness of businesses and, specifically, their willingness to focus on hiring and wages to address critical staffing needs. The lesson for organizations? Investing in hiring systems and improved compensation packages is a way to remain resilient and fully operational when your industry is experiencing workforce inconsistencies.
Despite this story of growth and resilience, the report also highlights many challenges that those of us involved in hiring and recruiting need to be aware of:
Worker Shortages – While staffing levels are getting back to some sort of equilibrium in certain industries, and other organizations are learning to adapt effectively with leaner staffing models, the simple fact is that active workforce participation remains shy of pre-pandemic norms. In fact, the Worker Shortage Index remains near an all-time low, with only about 7 workers available for every 10 job openings. This underscores a significant (and, lately, persistent) gap between need and demand.
Consumer Spending – Despite concerns about inflation rates, consumer spending continues to outpace it. While this seems to indicate robust economic activity overall, it doesn’t tell the full story, with inflation straining budgets across the board and driving discretionary spending down sharply among some demographics.
Supply Chain – While supply chain issues are nowhere near as dire as they were during the height of the COVID-19 pandemic, serious challenges and shortages do persist in many sectors. These issues highlight the need for synchronicity across departments in your organization. In other words, the perfect staffing model won’t help if you don’t have the products and materials in place for work to commence.
Entrepreneurship – The 2024 report also reveals a surge in new business applications and indicators of an increased spirit of entrepreneurship. While this can lead to an exciting time of fast growth in many industries, it can also exacerbate staffing challenges for those engaged in traditional hiring. Organizations may need to respond with flexible scheduling, ample time off, or hybrid work options that allow staff members the flexibility to continue pursuing their various passions and “side hustles.”
Early Retirement – One effect of the pandemic that is sometimes left unexamined when analyzing workforce woes is the sharp uptick in early retirements. This trend continues, sapping the workforce of many highly experienced candidates. As hiring professionals, we know that building a multi-generational staff is a great way to access a diverse range of skill sets. Special accommodations may be needed to entice would-be retirees to apply for open positions.
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