Your Hiring Pulse report for October 2024
The latest Hiring Pulse report uncovers a complex job market. While hiring efficiency is improving, competition among candidates remains fierce, especially as job openings decline for small and medium-sized businesses. What’s driving these trends? Let’s take a closer look.
As we transition into fall, the latest Hiring Pulse report reveals a mixed landscape for hiring in September 2024. With ongoing shifts in the job market, it’s crucial for business leaders and HR professionals to stay informed and agile. The hiring metrics this month reflect both opportunities and challenges that companies must navigate to attract and retain top talent.
In this report, as always, we explore three key metrics:
Time to Fill (TTF)
Total Job Openings (JO)
Candidates per Hire (CPH)
Each of these offers valuable insights into the hiring process, highlighting trends from September.
Contents
1. Time to Fill (TTF)
In September 2024, the average time to fill positions (TTF) decreased to 42.8 days, down from 43.3 days in August. This marks a continuation of a generally downward trend in TTF, reflecting a shift towards more efficient hiring practices across industries.
When we look back over the past year, TTF has seen significant fluctuations. For instance, in September 2023, the TTF was slightly higher at 41.6 days, while the figures from September 2022 show a longer average of 45.3 days. The data illustrates a broader context of gradual improvement.
This month’s decrease can be attributed to several factors:
- Adaptation to economic conditions: Companies are becoming more agile in response to ongoing economic fluctuations, allowing for quicker hiring decisions.
- Resumption of hiring activities: As summer vacations end, organizations are ramping up their recruitment efforts, contributing to a reduction in TTF.
- Enhanced recruitment technology: The use of AI and advanced recruitment platforms continues to streamline the hiring process, making it easier to match candidates with job requirements swiftly.
Overall, the reduced TTF highlights the need for companies to continue refining their recruitment strategies to navigate the competitive landscape effectively.
Top five functions with the best time to fill
In addition to the overall hiring trends, specific job functions have shown significantly more efficient hiring processes. In August, roles in Distribution, Business Analysis, and Manufacturing saw the shortest Time to Fill, with Distribution leading the pack. How are things in September?
The Distribution sector leads the way with a TTF of 25.1 days, while Advertising has the longest TTF at 33.6 days. This decrease in TTF compared to August reflects a more efficient recruitment process driven by well-defined job requirements and the urgency of hiring in high-demand sectors.
So, if you’re hiring for these positions, you may notice a decrease in the time it takes to find your next talent.
2. Total Job Openings (JO)
In terms of total job openings, September shows a steady demand for talent across different company sizes. Here’s the breakdown of job openings per business category:
The total number of job openings highlights the nuanced hiring landscape across various business sizes. This month, small businesses experienced a decline in job openings, decreasing from 7.0 to 6.1, which suggests that they may be reevaluating their hiring strategies due to economic uncertainties or operational adjustments.
Similarly, medium businesses saw a drop from 6.5 to 5.7, indicating a trend of cautious hiring amidst shifting market dynamics.
Conversely, enterprises managed to maintain a relatively stable number of openings, decreasing slightly from 15.5 to 15.3.
This stability suggests that larger companies may have a more robust hiring pipeline, possibly due to greater resources for recruitment and the ability to invest in talent acquisition initiatives.
This mixed performance across business sizes underscores the need for tailored hiring approaches.
Small and medium businesses might benefit from focusing on strategic roles that can drive growth while keeping hiring costs in check. In contrast, enterprises could leverage their position to attract a diverse range of talent, potentially enriching their workforce and fostering innovation.
3. Candidates per Hire (CPH)
The competition for jobs remains fierce, as evidenced by the Candidates per Hire (CPH) metric. In September, the average number of candidates per hire is 181.2, a slight decrease from 183 in August. This data highlights the high level of competition among job seekers, which remains a significant concern for employers.
Here’s a month-over-month comparison of CPH:
The slight decline from last month may indicate that while candidate pools remain robust, there may be a subtle shift in job seekers’ perceptions of opportunities. Many candidates continue to seek roles that align with their skills and values, which emphasizes the importance of companies maintaining clear and appealing job descriptions.
What’s the full picture?
To provide you with a comprehensive view of the job market, we combine insights from the Workable network with information from various authoritative sources.
The U.S. Bureau of Labor Statistics indicates a positive employment landscape, marked by job growth across sectors, stable unemployment, and gradual wage increases.
Notably, total nonfarm payroll employment rose by 254,000, surpassing the average monthly gain of 203,000 over the past year. Key highlights include significant job additions in food services and healthcare.
The ADP National Employment Report reflects a similar positive outlook, showing that U.S. private employers added 143,000 jobs, rebounding after a five-month slowdown. The only decline is in information services jobs, with a surprising drop of 14,000.
Mid-sized and large businesses experienced the most growth, with hiring widespread across various industries. However, wage growth remained steady, with only a slight increase in pay for job-changers
In contrast, the Challenger Gray & Christmas report presents a more cautious picture. U.S. job cuts in September 2024 remained flat compared to August, but year-to-date cuts have surpassed 2023 levels.
While sectors like technology and government saw a decrease in job cuts, industries such as utilities, energy, and transportation faced sharp increases. AI-driven job cuts continue to rise, and overall hiring plans for the year are at their lowest since 2011.
The differences between these reports underscore the variability within the job market. The positive outlook on job additions contrasts with the concerning rise in job cuts noted in the Challenger report, reflecting the complexities businesses face as they navigate economic uncertainties.
When compared to the insights presented in the Hiring Pulse, both the Bureau of Labor Statistics and ADP reports emphasize job growth and a rebound in hiring, mirroring the trends reflected in Workable’s data.
What’s going on here?
The hiring landscape for September 2024 paints a picture of cautious optimism. While the decrease in Time to Fill indicates some efficiency in recruitment processes, the high number of candidates per hire underscores the intense competition for roles. Companies must remain vigilant in refining their hiring strategies to attract top talent amidst economic uncertainties.
Next steps for you:
To navigate the current hiring landscape effectively, companies should consider the following steps:
Optimize your hiring process: Streamline internal processes to reduce Time to Fill. Implementing effective communication strategies and utilizing recruitment technology can help speed up the hiring process without compromising quality.
Leverage technology: With the high number of candidates per hire, utilizing AI-driven recruitment tools can enhance filtering and assessment processes, allowing HR teams to focus on the most promising candidates.
Focus on employer branding: In a competitive job market, it’s crucial to communicate your company’s values, culture, and benefits effectively to attract the right candidates.
Adapt to market dynamics: Stay informed about economic conditions and adjust hiring strategies accordingly. Regularly review and update job descriptions to ensure they resonate with the evolving job seeker landscape.
The Hiring Pulse: Methodology
Because one of the three metrics (Job Openings) is different from the other two metrics (Time to Fill and Candidates per Hire), we’re adopting two very distinct methodologies.
To bring the best insights to small and medium (and enterprise-level) businesses worldwide, here’s what we’re doing with the Job Openings metric: we’re taking the number of job openings in a given month and dividing that by the number of active companies in our dataset, and posting that as an average. For example, if July 2022 shows the average Job Openings per company as 7.7, that simply means each company posted an average of 7.7 jobs that month.
For the Time to Fill and Candidates per Hire metrics, we’re updating our presentation approach to reflect the actual numbers from our network, moving away from the previous index-based method. This change will provide a more accurate and transparent view of the data.
The majority of the data is sourced from businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.
