2023 Outlook for Talent Supply and Demand in the US

The US labor market is ever-changing, making it challenging to keep up with the latest trends. To remain competitive, organizations must be proactive about their talent acquisition strategies in 2023.

Here’s what you can expect regarding difficulty finding high-level human talent, greater demand that cannot be covered with local talent, and the latest talent acquisition trends. 

It Will Be Harder Than Ever to Find High-Level Human Talent

The war for talent is on and will be more intense in 2023 than now. The first challenge businesses will face is finding high-level human talent because more jobs are available than people to fill them. 

Joey Hoelscher argues that, due to the outbreak of the COVID-19 pandemic and the economic hardship faced globally, it has become difficult for employers to find skilled workers in many industries. 

According to Hoelscher, the labor shortage currently occurring in the US can lead to operational risks and limitations in public services. This explains why getting and retaining high-quality workers is essential amid an impending recession. 

Why will it be challenging to find workers in America in 2023? 

Some factors that would influence the current labor shortage, like the talent gap, the effects of the pandemic on the national economy, the great resignation, the rapid transition toward remote work, and the utilization of automation tools in the workplace. 

If you want to learn more about the US labor market situation, we recommend you read our post. 

Demand for Workers in America Will Outpace Supply in 2023

Businesses will also face greater demand for workers that local talent cannot cover. As a result, small companies will need to look outside their local area for employees. 

It is possible that business owners, executives, HR specialists, and recruiters provide relocation assistance or remote work options to attract employees from other parts of the country or even outside the US. 

If you’re considering transitioning to remote work via outsourcing, you should know its benefits for your company. 

For instance, outsourcing has five productivity benefits for your company, including having high-quality work, improving customer service, boosting profitability, allowing you to use resources better, and developing a sustainable business. 

If you want to learn more about the labor shortage in the US, watch this video. 

What Trends Will Influence Talent Acquisition in 2023?

The new Universum Survey of Talent highlights several talent acquisition trends for 2023. Here we recap some of these trends for your information: 

Companies Will Be Developing Talent From Within Due to the Tight Talent Market

Companies will be investing in reskilling their existing talent and promoting career development from within to fill new job positions. 37% of the HR leaders who participated in this survey said that improving internal career mobility would be a top strategy to face the labor shortage. 

Companies Will Be Diversifying Talent Sources

44% of the business owners who participated in the Universum Survey said they would cast a wider net to attract new talent via freelance marketplaces.

Employer Branding Will Be Critical to Face Talent Disruption

86% of the business owners and HR executives participating in this study called employer branding a top priority. 

Takeaway

The US talent acquisition landscape is always challenging, and it cannot be easy to know what trends will prevail in 2023. 

However, in this blog post, we explained two significant trends: how difficult it will be to find talented workers and how employee demand will outpace supply due to the labor shortage. 

Suppose you want to remain proactive and competitive in 2023. In that case, you must protect your business and identify cutting-edge talent acquisition strategies, like diversifying your sources, using technology to recruit efficiently, and outsourcing. 

Have you implemented these talent acquisition strategies before? Tell us more!

Our company is a full-service staffing agency specializes in outsourcing remote employees based in Mexico. A business model designed for US companies.