The 2023 Job Market - The Good, The Bad, and The Unknown

When it comes to the job market, the last three years have been a rollercoaster ride. From the pandemic to the hiring boom in early 2022, to record inflation rates, quiet quitting, and a looming cloud of instability. Now that 2023 has arrived, what can we expect?

Fewer layoffs but fewer overall job openings

Despite the uncertainty, both 2021 and 2022 saw overall job growth. According to a Barron’s article, “The U.S. economy added about 562,000 new jobs each month on average in 2021, and is on track to have added about 380,000 a month on average in 2022.” Despite these numbers mass layoffs heavily impacted many professionals, especially in the tech industry. Not to mention the unprecedented inflation rates, which left many feeling uncertain about the well-being of the economy. The Federal Reserve has been battling intensely against rising interest rates for the past year. These actions have resulted in a slow economic recovery, nearly missing a full-out recession.

As a result, 2023 will likely be known as “The Great Rebalance”, according to Forbes. This means the job market will see fewer layoffs but fewer overall job openings as companies work to hold onto their current employees. “In 2023, less job hopping and fewer counteroffers are likely as the demand for talent and the supply of candidates evens out.” This won’t mean no new job opportunities. In fact, according to CNN “there is “absolutely no sign” that job growth will fall on a “sustained basis” below a pace of roughly 150,000 jobs a month.” As the economy recovers, job growth will be slow but on a trend of growth never the less.

Different Industries, Different Story

While overall job growth should stabalize in 2023, not every industry will have the same experience. Due to the increase in interest rates, industries related to the housing market may continue to see a decline in job opportunities. This includes insurance carrries, real-estate appraisal, and even home good retailers. In fact, “those sectors saw employment decline by nearly 5% or more in 2022” (‘A (Mostly) Positive Labor Market Forecast for 2023’ ERE). Additionally, the tech industry will continue to face uncertainty as borrowing becomes more expensive. The most recent example being Amazon’s decision to let go of 18,000 employees.

However, other industries have and will continue to thrive under the 2023 economy. As people move away from their pandemic behaviors, industries related to travel and entertainment will see a significant growth in job opportunities. This includes convention and trade show organizers, hospailtatlity, travel, education, health services, retail and more.

Remote work has opened the door to a new hiring approach

Many organizations were forced to switch over to a remote work model during the pandemic. Now, long after the pandemic's peak has passed, employers are maintaining that model. Not only has this model been preserved, but it will continue to grow in 2023. Especially for industries like "technology, law, government, and healthcare" (Barron’s). This change will allow for more market flexibility for candidates on the hunt for a new role. The workforce isn't just interested in full-time roles; they are creating new and unique career paths. As a result, companies will consider the level of knowledge and equity required for a project, whether it's recurring, and the efficiencies of incorporating the work from a freelancer into the larger organization. Candidates are no longer limited to their state lines, or the permanence of being a full-time employee, widening the pool of job opportunities.

Find your next job opportunity on Jopwell

Overall, 2023 will see a rebalancing that will negatively impact some and benefit others. As we all voyage into the great unknown of the 2023 job market, Jopwell is here to help you reach your careers goals. With over 150 partners, Jopwell posted over two thousand open jobs in 2022. In 2023, we will continue to offer you the latest opportunities open at our partners organizations.

On the hunt now? Take a look at our many openings today at www.jopwell.com.