Innovative HR Tech Company Releases AI-Driven Forecasts.
Turn Technologies, a platform that is revolutionizing talent acquisition for recruiters and people teams with high-volume hourly staffing needs, released its Job Economy Predictions for August 2022 today that forecast hiring, retention and compensation trends on the heels of this month’s Employment Situation Summary from the U.S. Bureau of Labor Statistics.
Turn’s AI-driven platform tracks 94% of working Americans and employment data from 1.1 million companies spread across more than 36,000 locations in the U.S. It also provides daily analysis of all recruitment activities of more than 525,000 job advertisers.
Per the Federal Reserve Plan, the Job Economy is Slowing
In an attempt to get inflation rates under control, the Federal Reserve has – and will continue to – increase interest rates. This is intended to make borrowing money to fuel corporate growth more difficult and costly to obtain. The increase will have a direct negative impact to the Job Economy by slowing hiring. The Federal Reserve’s stated goal is to increase the unemployment rate to 4.7% over the next 12-18 months.
Hourly Workers are the Exception to the Slowdown
Turn forecasts a 4.6% reduction in overall hiring, though the hiring of hourly workers will increase 1.4%. The slowdown will impact companies that primarily hire skilled (5.3% slowdown) and semi-skilled workers (2.2% slowdown). Turn predicts smaller companies, under 600 employees, will be impacted first and will reduce hiring 15%.
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The Great Resignation Continues
Turn predicts a 5.3% decrease in hourly worker retention (from 9.5 to 9 days). Turn surveyed 2,000 hourly workers in July 2022 and discovered 49% ranked pay as the most important attribute of a job. However, 70% of respondents stated their current job does not cover monthly expenses but 79% were optimistic their next job would.
“As the U.S. transitions from a closed pandemic job economy, increasing inflation drives the demand for hourly employees. Our platform enables autonomous hiring at scale and helps high-volume employers improve the talent quality of their candidates,” said Rahier Rahman, founder and CEO of Turn.