The latest hiring data from the Bureau of Labor Statistics shows that approximately 5.8 million people were hired on a seasonally-adjusted basis in the U.S. in October 2020. The number has been fairly steady since July, but it is down from the historic peak of 7.2 million hires in May.
While net job gain and growth tend to be the headline numbers more often reported, total hiring is an important signal for talent acquisition professionals because it represents all the movements within the job market. When a new job is added to the market, the person filling it is often transitioning from another company and the individual’s former role will usually need to be backfilled. The ensuing domino effect results in a number much larger than the headline number of new jobs created.
LaborIQ® by ThinkWhy’s forecast for hiring suggests talent acquisition professionals will have their hands full during the next few years as the economy kicks into a new gear once COVID-19 is under control. From 2011 to 2019, the average number of hires per year in the U.S. was approximately 61 million. The forecast for 2021 is approximately 76 million hires, but the first half of the year could start at a slower pace due to rising virus counts. As the vaccine takes hold, the second half of 2021 should see a more meaningful acceleration. The total hires for 2021 to 2023 is likely to exceed 200 million as the market recovers from the impact of the pandemic.