RSM HR’s labour market outlook for 2024

The labour market in 2024 is changing with emerging trends shaping recruitment strategies and redundancy rates. Employers are adapting to new dynamics in the workforce and leveraging technological advancements to navigate these changes. Discover the key trends and insights that will define the labour market landscape this year.

Recruitment

Several key trends will influence the labour market outlook for 2024, especially in the areas of recruitment and redundancy. According to Hays’ report on top hiring trends for 2024, employers are now hiring for potential, not just specific skillsets, to gain the best talent. Many firms are investing in apprenticeships or adopting a skills academy approach to recruitment to adapt to the different mindset of the new generation of working professionals, particularly Gen Z and recent graduates. Employers are shifting their management approaches to help this generation adapt to working practices and those who can meet the expectations and motivations of this next generation will secure their talent pipeline.

Redundancies

Artificial Intelligence (AI) will drastically change the way we work. It will revolutionise our operations as we fully recognise and leverage its potential. Many basic and routine roles will become obsolete over time as the world adopts this new technology, resulting in fewer available roles.

Redundancies are forecasted and recruitment will become more strategic and pinpointed. The current rate of redundancy for the first quarter of 2024 in the UK was 3.1 per 1000 employees, according to the ONS. Since 2020, the redundancy rate has fluctuated from 1.8 to 4.6, indicating that employers are cautiously reviewing their current workforce needs. The CIPD’s Labour Market Outlook for Spring 2024 also found that more employers were keeping staff levels steady, with over 55% of surveyed employers looking to maintain their current staff level. This is the highest proportion for nearly a decade, pointing towards some stability.

Your Employee Value Proposition (EVP)

Employers also need to provide a robust benefits package, development and career progression, and flexible and hybrid options where possible. At the same time, organisations are focusing on upskilling and supporting their existing workforce as they navigate redundancy complexities. These trends highlight the importance of people-centric strategies in navigating the evolving labour market landscape. In this context, many employers are exploring external solutions such as outsourcing. This approach can help them stay nimble in a changing workplace and protect their organisations as needs quickly change due to technological advancements and market shifts.

For a conversation on any of the above, please contact Kerri Constable.