Q3 2024
Talent Pulse Report
The fifth edition of the Vaco Talent Pulse Report, which measures and reports on employee and job seeker confidence levels in three core areas—job security, financial status and career advancement—reflects increasing or stable levels of confidence in all three categories. Despite ongoing economic uncertainty, job seeker and employee confidence levels demonstrate a resilient and determined workforce.
Q3 2024
Talent Pulse Report
The fifth edition of the Vaco Talent Pulse Report, which measures and reports on employee and job seeker confidence levels in three core areas—job security, financial status and career advancement—reflects increasing or stable levels of confidence in all three categories. Despite ongoing economic uncertainty, job seeker and employee confidence levels demonstrate a resilient and determined workforce.
Both the U.S. and Canada continue to experience a rise in unemployment rates.
U.S. UNEMPLOYMENT RATE
In the U.S., the unemployment rate rose steadily in Q2, reaching 4.3% in July. This marks the highest unemployment rate since November 2021 and represents a 0.8% increase year-over-year. In addition to the increase in unemployment, job growth numbers in July fell short of economic expectations, adding only 114,000 jobs.
CANADIAN UNEMPLOYMENT RATE
Similarly, Canada experienced a consistent increase in unemployment rates over the same period. The rate climbed to 6.4% in June and held steady in July, up from 6.1% in April and 6.2% in May, representing a 0.9% increase year-over-year.
Job Security
This quarter, confidence levels around job security went up significantly from Q2, with 45% of respondents reporting extreme confidence in their ability to get and hold a job right now. This represents the highest confidence level recorded surrounding job security since the introduction of the Talent Pulse Report in Q3 2023, marking a 10% increase from Q2 and a 6% year-over-year improvement.
Additionally, the percentage of respondents who are not confident to get and hold a job right now dropped to 26%, the lowest number since the introduction of the Talent Pulse Report. This is highlighted by a 7% decrease from Q2 and a 2% decrease year-over-year.
How confident are you in your ability to get and hold a job right now?
Source: Vaco Global LinkedIn Poll
How confident are you in your ability to get and hold a job right now?
Source: Vaco Global LinkedIn Poll
Extremely Confident:
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Somewhat Confident:
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Not Confident:
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Extremely Confident:
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Somewhat Confident:
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Not Confident:
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Lauren Becker Vaco Managing Partner
"Despite recent jobs report numbers, we are seeing solid activity in the market with employers actively seeking top talent. Companies are becoming increasingly selective of candidates, focusing on both skills and cultural fit for their organizations, leading to a rise in consulting and contract opportunities.
To help increase their value and maintain job security, professionals should prioritize engaging in local networking groups and leverage recruiters. Additionally, they should enhance their LinkedIn profiles by adding a professional photograph to their profile and include detailed information to stand out in this competitive landscape. For those hiring, we recommend an efficient interviewing cycle, including making use of virtual interviews early on and conducting panel interviews to cut down on the number of steps in process."
The Ultimate Standoff
A standoff has emerged between employers and executive-level candidates due to factors like elongated private equity hold periods, rising interest rates in the housing market and shifting professional priorities.
Focus Search Partners, a Vaco company, recently wrote about this standoff, covering how employers are adapting their recruitment strategies to address these factors, and how interim executives are becoming an increasingly popular solution.
The Ultimate Standoff
A standoff has emerged between employers and executive-level candidates due to factors like elongated private equity hold periods, rising interest rates in the housing market and shifting professional priorities.
Focus Search Partners, a Vaco company, recently wrote about this standoff, covering how employers are adapting their recruitment strategies to address these factors, and how interim executives are becoming an increasingly popular solution.
Financial Status
This quarter, respondents continued to show strong optimism about enhancing their financial status, with 44% expressing extreme confidence, maintaining the same level as Q2 and an 8% increase year over year.
The proportion of those feeling somewhat confident remained steady at 30%, mirroring the levels reported in Q2 and down 2% year over year. Additionally, the percentage of respondents not feeling confident in improving their financial situation decreased to 25%, a slight drop from 26% in Q2 but a notable 7% year-over-year decrease.
How confident are you in your ability to improve your financial situation in the next 6 months?
(Either through a raise or by obtaining a new job.)
Source: Vaco Global LinkedIn Poll
How confident are you in your ability to improve your financial situation in the next 6 months?(Either through a raise or by obtaining a new job.)
Source: Vaco Global LinkedIn Poll
Extremely Confident:
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Somewhat Confident:
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Not Confident:
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Extremely Confident:
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Somewhat Confident:
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Not Confident:
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Viney Mandal Managing Director
“As the current economic downturn continues, job seekers remain acutely aware that all cycles have a beginning and an end, with the expectation that we are in the back half of this cycle. We are seeing positive signs, including increased hiring activity and a stronger range of opportunities in the verticals we service, particularly in technology, finance and accounting, which is unusual for the third quarter—a typically slower hiring period due to summer holidays. This suggests that there are 'brighter days ahead,' as no downturn can last forever.
While market demand is expected to rise, the supply of strong talent remains tight. As a result, companies are willing to pay to retain their people through counteroffers, but those who still choose to move are obtaining opportunities to advance and improve their financial situation. Vacated roles are being filled with interim consultants to keep work moving or through internal promotions and new hires, creating favorable outcomes overall for candidates seeking to enhance their financial status.”
Career Advancement
Respondents reported an optimistic outlook on their ability to advance their careers over the next year, with 47% expressing extreme confidence in doing so. This reflects a 2% increase when compared to Q2 and year-over-year numbers. The percentage of those feeling somewhat confident decreased to 28%, while 25% of respondents reported not feeling confident, reflecting a 1% increase from Q2 and year over year.
How confident are you in your ability to advance in your career in the next year?
Source: Vaco Global LinkedIn Poll
How confident are you in your ability to advance in your career in the next year?
Source: Vaco Global LinkedIn Poll
Extremely Confident:
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Somewhat Confident:
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Not Confident:
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Extremely Confident:
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Somewhat Confident:
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Not Confident:
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Josh Haymond Vaco Managing Partner
"While larger companies navigate Wall Street's expectations, the job market remains resilient, particularly in life sciences, tech and emerging sectors that continue to hire for long-term growth. Demand is especially strong in accounting, finance and technology, where competitive compensation and a heightened focus on retaining top talent and upskilling are being prioritized.
Utilizing a contingent workforce can be a great way to expose internal talent to new ideas, processes and experience, and provide them with the opportunity to learn from experts who have done it before in similar, or complementary, environments. Candidates should remain optimistic but exercise caution, ensuring that career moves are driven by strategic considerations beyond just compensation. If the focus is on where someone can drive the most value, the rest—stability, compensation, opportunity—will follow."
An Evolving Workforce
Are you considering taking a contract role in 2024?
Are you considering taking a contract role in 2024?
YES, I ALREADY HAVE OR PLAN TO
NO, I ONLY WANT PERMANENT ROLES
WHAT IS A CONTRACT ROLE?
OTHER
In Closing
The Q3 2024 Vaco Talent Pulse Report shows a noteworthy shift in workforce sentiments amidst evolving economic conditions. Despite U.S. unemployment reaching its highest point since November 2021, confidence levels around job security also reached their highest level since the inception of the Talent Pulse Report in Q3 2023. Confidence levels in the ability to improve financial situations and career advancement were also higher quarter over quarter and year over year.
As the workforce continues to experience a volatile economy and job market, contract work emerges as a viable option for career growth and flexibility while navigating a dynamic job market. For employers, consultants provide protection and relief—especially during times of uncertainty.
The speed of change requires the talent of people. Vaco solves for both.
With expertise in accounting and finance, IT and digital, and HR and operations, Vaco delivers critical talent solutions to clients by providing contract staffing, managed services, direct-hire staffing and executive search services. In addition to Vaco, the Vaco Holdings collective of brands includes MorganFranklin Consulting, a finance, technology and business advisory firm; Pivot Point Consulting, a Best in KLAS healthcare IT consulting leader; Focus Search Partners, a retained and interim executive search practice; and BUILT, a digital solutions company specializing in software, cloud, data and AI solutions. In addition to being named to Inc. magazine’s list of the fastest-growing private companies for the past 17 years, Vaco was also named to Forbes’ 2018-2024 lists of America’s Best Recruiting Firms as well as the 2017-2024 lists of Largest Staffing Firms Globally by Staffing Industry Analysts. Vaco annually ranks as one of the Best Staffing Firms to Work For.
For more information, visit vaco.com.
Methodology
Poll questions to inform the Q3 2024 Vaco Talent Pulse Report were administered online through Vaco’s LinkedIn company profile on June 15, 2024, June 21, 2024 and June 29, 2024. Results and summaries are based on the 10,156 votes cast across the three polls. A highlight of follower demographics includes those from across the U.S. and Canada working in engineering, technology, accounting, finance, human resources and operations. The majority of people represented are either senior, manager, director, VP or entry-level.
For questions on methodology, please contact Brittney Kowalski, VP of Communications and Content – Vaco Holdings, at bkowalski@vaco.com.
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