What to Expect in 2018’s Job Market
Unemployment is the lowest it has been in a decade, and the hunt for top talent in the DC area is becoming increasingly competitive. What does this mean for people who want to hire high caliber people in 2018 and, conversely, for people who are open to new opportunities?
Recruiting will become more difficult
We predict that recruiting for all companies is going to become significantly more challenging in 2018. The national unemployment rate steadily declined throughout 2017. It might seem counter intuitive, but when unemployment was higher, we saw more fluctuation and uncertainty in the job market. For example, it was like a fire sale when the last recession hit, it seemed like everybody wanted to change jobs. Also, we saw consultants benefit as a result of the instability at that time.
Once unemployment levels decreased, we saw stability set in. Now, there is less movement and people have become comfortable in their current jobs. What makes this tricky for hiring managers is that movement creates movement. When people see their coworkers picking up the phone or taking a lunch meeting with a recruiter to hear about a potential new opportunity, they become more motivated to update their own resumes and efficiently network too.
Conversely, when an employee sees that their peers are content in their jobs, they also become less likely to seek a change for themselves. This ripple effect means that companies will find it increasingly difficult to lure candidates for specialized positions. We expect that companies will have a shorter supply of applicants and an increase in demand for highly qualified people. In particularly competitive job markets like Washington DC, companies will have to sharpen their skills in the courting process to convince people to take a risk on a new opportunity. Chivalry is not quite dead.
The persuasive power of money
Surprisingly, despite the low unemployment rate, the one thing that has not increased that much so far is wages. We expect that is going to change. Since recruiting is going to be more challenging, employers are finally going to need to offer more money to convince talent to make a move. “Candidates with CPA, Big4 and SEC reporting experience will have their pick of lucrative opportunities if they are up for making a move,” said Eric Wunderlich, Director at Capital Search Group. “This is due to low unemployment and an accelerated need for these kinds of professionals.”
Your career in 2018 is really up to you
We live in an age of increased availability of information. We can read reviews of companies before we interview, we can study emerging industries and apply for jobs that really make an impact. We can easily find a recruiter or an insider at a company to give us honest insight about a company’s culture and structure. We can even find a calculator to determine how an offer might be impacted by the new 2018 tax laws. However, the more things change, the more some things stay the same. Your career success in 2018 will still depend on the human relationships you build and the work product you create. Those are timeless.
