10 Hiring Stats You Should Know Right Now

At Kaizen HR, we often find ourselves sifting through a lot of information about the state of hiring and HR, both from our own expert sources and from conversations with clients and candidates. When we cut through the noise, though, we’re able to find the nuggets of information that are most useful to hiring teams as they search for top talent to fill critical roles.

These ten statistics can help your team get a better overview of the hiring situation right now. From general attitudes about the economy to demographic shifts and employee priorities, here are ten things every HR leader should know right now.

1. The unemployment rate continues to hover around 3.9%. The economy in general shows significant signs of stabilization without hitting a full-out recession, including a stable unemployment rate. As a result, the candidate/company relationship is returning to more of an equilibrium, which is good news for avoiding “bad fit” hires made out of desperation on either side.
2. By 2030, the number of Gen Z employees is expected to triple from their current level. That means they will soon comprise nearly a third of the overall workforce. As Gen Z (and their immediate predecessors, Millennials) take up greater and greater shares of the workforce, hiring teams should be re-evaluating their approach to ensure they’re highlighting the elements most likely to appeal to these younger generations, such as flexibility, transparency, inclusivity, and career growth.
3. 38% of Gen Z’ers are concerned they could be replaced by technology, while 44% say that not being taught relevant skills for career advancement is among their top three concerns. They’re more likely to prioritize accepting roles (and staying in them) at companies that prioritize career development, including things like mentorship, continuing education, and/or upskilling initiatives.
4. 81% of employees said they prioritize seeking out workplaces that support mental health when seeking new job opportunities. Today’s employees aren’t just concerned with “traditional” health benefits, but rather the whole self. Ensuring that your organization supports mental health – both in terms of benefits and in terms of workplace culture – is key to winning in the talent marketplace.
5. The quit rate has stabilized around 2.2%, indicating that the “Great Resignation” is in the rearview mirror. Instead, most employees are looking for jobs where they can be happy and grow for a while. Still, it’s good to put some emphasis on retention, not just recruiting, as the job market is still strong enough that truly dissatisfied employees still have enough security to depart.
6. 82% of job seekers say they find overly automated processes frustrating, and 87% believe that advancing technology has made the job search more impersonal. AI and similar technologies may be very useful for streamlining your recruiting process, but these responses from job applicants indicate that, to remain truly competitive for top talent, your process should still focus on human connection, and just use tech to streamline repetitive tasks like scheduling or email reminders.
7. Over 70% of people believe skills-based hiring is more effective, including 86% of job seekers who believe that being able to demonstrate relevant skills would increase their chances of landing a desired job. As trends shift away from using traditional markers like college degrees or standard career trajectories, hiring teams will want to similarly revamp their processes so they don’t miss out on top talent who might just have an unconventional path.
8. Voluntary turnover costs U.S. businesses $1 trillion annually. The cost of replacing an employee can be between one-half to two times the employee’s annual salary, with recruiting costs, lost productivity, and more. This leads to a dual mandate for hiring and HR teams: improved hiring processes to improve the likelihood of long-term good-fit hires, and improved retention strategies to ensure employees remain loyal, engaged, and satisfied.
9. Only 2% of Americans are currently relocating for jobs, and up to a third say they’d turn down a job if it was required to be office-based. It’s a strong indicator that work location – and flexibility – are still potential dealbreakers for many, including top talent. Hiring teams will need to evaluate which roles truly require relocation and offer robust packages to entice top candidates to make the move.
10. Required skills for jobs may change up to 65% in the next decade. The rise of AI and other advanced technologies mean that the skills you hire for today may be obsolete sooner than you think. Instead, where possible, focus with an eye to the future, and look for talent that is curious, flexible, agile, and excited to grow and change, rather than talent that is more pigeonholed.

Our team at Kaizen HR is on the front lines of these conversations, always listening and learning which trends are having an impact. Paired with our extensive recruiting expertise and networks, that means we can dig down and uncover where candidates stand on these key issues, so you don’t spend valuable time and resources on candidates who aren’t serious about the position. We’re committed to helping you find the right fit, every time – talk to us to learn more.

By Rose Dorta