As we reflect on the closing months of 2023, the U.S. economy displayed resilience and closed the year on a high note. Job additions in December exceeded expectations, maintaining the unemployment rate at 3.7%. However, a noteworthy decrease in job resignations was observed.

The Staffing Industry Indicator reveals a tempered post-holiday rebound in staffing hours, notably lower than the previous year, signaling ongoing industry challenges. Professional staffing remained 11% below last year, aligning with the broader decline in temporary employment reported by the Bureau of Labor Statistics.

Addressing recession fears, the U.S. economy defied expectations with a robust Q4 performance, fueled by exports, government spending and business investment. The Commerce Department's GDP report showed a 3.3% annualized growth, indicating economic strength and reducing immediate concerns of a downturn.

In the evolving job landscape, several trends are shaping the workforce in 2024. Employers are introducing creative benefits, embracing AI for career development and adapting to four-day workweeks. Conflict resolution skills for managers, a focus on diversity, equity and inclusion, and a shift in traditional career paths are also prominent trends.

Additionally in this quarter’s report, we highlight the changing dynamics of temporary employment, emphasizing the impact of canceled projects and a decline in temporary workforce numbers. Despite these challenges, however, staffing employment showed a 4.0% increase in January.

Included in our insights, we touch on the importance of a robust hybrid work policy, the strategic value of consultants in uncertain times and actionable steps for quick and effective job openings.

As we navigate the evolving landscape of talent and work, Vaco remains committed to providing critical solutions and expertise across various sectors, ensuring our clients thrive in a dynamic and ever-changing environment.

Kevin Witt President, Vaco