We are through the first half of 2024, and the employment picture remains somewhat of an enigma. On the one hand, lots of employment data and market references look positive: all major stock indices finished May at record highs, and unemployment remains at 4%, which is one of the longest streaks in seven decades that unemployment is either at or below 4%. Companies also continue to hire. The May jobs report was just released, and the U.S. economy added another 272,000 jobs — an average of around 240,000 additions each month for the last year. On top of that, there are 8.1 million job vacancies across the United States.
On the other hand, despite all that strong labor news, layoffs continue: in the technology sector alone, we have seen 60,000 jobs lost so far this year across more than 250 companies. Job losses are evident in many other industries too, from energy to manufacturing to even government positions which were long a bastion of job security.
In 2022-23, workforce reductions were often linked to overhiring connected to the COVID-19 pandemic. That time has passed, so why are we continuing to see so many job reductions? What does it say about the state of the U.S. economy? And if you are affected, what can you do to land another position soon and reduce your risks?
Understanding the Employment Paradox
The reason for this paradox of simultaneous job growth and layoffs is complex, and if you are affected, can be frustrating to understand and navigate. Several factors contribute to the situation:
Structural Reorganization and Market Factors: Many companies are undergoing structural reorganizations, often pushed by investors and other market forces to cut costs and improve efficiency. Interest rates remain high, making new investments particularly expensive, reducing growth options and opportunities. This leaves companies with limited options to boost shareholder value. As a result, investors are increasingly scrutinizing companies' bottom lines, asking them to find more solutions through cost-cutting to boost earnings per share and drive enterprise value growth.
Technological Advancements and Automation: The rapid pace of technological advancements, particularly in AI and automation, can’t be overstated. Many roles across manufacturing, transportation, customer service, retail, legal services, human resources, marketing, and health care — any jobs built on repetitive and routine computer tasks — are increasingly susceptible to technological replacement. These transformations are happening at such an accelerated rate, it’s difficult for retraining and re-skilling efforts to keep pace. New roles for these industries haven’t yet caught on en masse, so there can be a replacement time gap that leaves workers stranded.
Economic Uncertainty: Global economic uncertainty, driven by factors such as geopolitical tensions, fluctuating commodity prices, and associated supply-chain disruptions, continues to impact business decisions. Companies often respond to these uncertainties by tightening their belts and reducing their workforce to mitigate risks.
Despite these challenges, the overall labor market remains robust. If you find yourself impacted, not all is lost. You can navigate this changing economy to find your next opportunity. Here are five practical, actionable tips on how to secure a new job or create your own income:
1. Leverage Your Network
Networking remains one of the most effective ways to find new employment opportunities. Reach out to former colleagues, industry contacts, and friends to let them know you are in the market for a new position. Attend industry events, webinars, and virtual meetups to expand your network and stay updated on industry trends.
Actionable Tip: Set a goal to reconnect with at least one person in your professional network each day. Scan LinkedIn to remind yourself of who you are connected to - you might find people who could be a valuable resource you haven’t connected with in awhile. Use LinkedIn to send a brief message or schedule a coffee chat. Personal connections are often the best source leading to job referrals and insider information about job openings.
2. Update and Tailor Your Resume
Your resume and LinkedIn profile are your first impressions with potential employers. Ensure they are up-to-date, highlighting your most recent achievements and relevant skills. Tailor your resume for each application, emphasizing the experience and qualifications that align with the job description.
Actionable Tip: Use keywords from the job posting to customize your resume. Many companies use applicant tracking systems (ATS) that scan for specific terms, so incorporating these keywords can increase your chances of passing the initial screening. Leverage input from your network on what to highlight as well. You may find certain hiring teams or companies are looking for something differentiated, and spelling that out can improve your chances.
3. Enhance Your Digital Presence
In today’s digital age, having a strong online presence is crucial. Potential employers often search for candidates online, so ensure your LinkedIn profile is complete and reflects your professional brand. Consider creating a personal website or portfolio showcasing your work, especially if you are in a creative field.
Actionable Tip: Regularly share industry-relevant content and engage with posts on LinkedIn. This not only keeps you visible to your network but also demonstrates your expertise and passion for your field.
4. Explore Freelancing and Gig Opportunities
If traditional employment is proving elusive, consider leveraging your skills as a freelancer or consultant. The gig economy offers numerous opportunities across various industries, from tech and media to marketing and design. Platforms like Upwork, Fiverr, and Toptal can connect you with clients seeking your expertise. Additionally, even if your connections in your network don’t have full-time opportunities available, ask if they might need consulting, or contractors for specific projects. If they do, that can help bridge the gap between jobs, and may open other doors to new opportunities you had not imagined before.
Actionable Tips: Ask your network about consulting or contract opportunities. Be open to exploring that in the interim. Identify your core skills and create a profile on one or more freelancing platforms. Start by offering competitive rates to build your portfolio and gather positive reviews. As you gain more experience and feedback, you can increase your rates and expand your client base.
5. Invest in Continuous Learning
The job market is constantly evolving, and staying competitive requires continuous learning and skill development. Identify the skills that are in high demand in your industry and seek out opportunities to acquire them. Online courses, certifications, and workshops can help you stay relevant and improve your employability.
Actionable Tip: Dedicate a few hours each week to learning a new skill or enhancing an existing one. Websites like Coursera, Udemy, and LinkedIn Learning offer a wide range of courses that can help you stay ahead of industry trends and make you a more attractive candidate. Given the proliferation of AI tools, understand what tools your industry uses and get familiar with those as well and how they can assist you and your potential employers moving forward.
Final Thoughts
While the current employment landscape presents a mix of opportunities and challenges, you can successfully navigate these complexities with persistence, resilience and dedication. By leveraging your network, updating and tailoring your resume, enhancing your digital presence, exploring freelancing opportunities, and investing in continuous learning, you can increase your chances – maybe even find a new industry or career paths you didn’t even contemplate before.
Jesse Meschuk is a Human Capital Advisor, and career and HR expert with more than 20 years of consulting and human resources experience. Jesse specializes in helping companies define and execute their human capital strategy across the entire employee value proposition in a wide variety of industries including technology, entertainment, gaming, retail, hospitality, manufacturing, and sports. Jesse’s work has spanned across the Americas, Europe and Asia and he has considerable expertise on how to successfully manage a diverse, global culture.
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