According to new research by Glassdoor and Indeed, demographic changes will make it harder for employers to hire and retain staffWorkers are set to have an upper hand in the job market as demographic changes make it harder for employers to hire and retain staff, according to a new study by economists at Glassdoor and Indeed.
Fears of a potential recession in 2023 may temporarily curb businesses’ hiring in the short term, the report said, with recent mass layoffs at tech giants like Meta Platforms and Amazon sending shock waves through the industry. But long-term effects are likely to skew market power towards jobseekers, according to the study.
In particular, the effects of an ageing workforce, already accelerated by the pandemic, are becoming more acute as the median baby boomer turns 65 this year. “The baby-boomer retirement has been a slow-moving train wreck for the past 20 years,” Terrazas said in an interview. “The retirement crisis, in the background before the pandemic, suddenly landed.”
Despite speculation earlier this year from economists that inflation would force some baby boomers back into the job market, it hasn’t held up, Terrazas said. A recent study from Indeed found that the rate of retirees re-entering the workforce had slowed, even as new retirements continued to increase.