Post-coronavirus economic recovery at risk due to the great people shortage

Press release

Post-coronavirus economic recovery at risk due to the great people shortage 

• The Stepstone Group publishes analysis of the job market situation in Germany, the US, and the UK
• Demand for workers significantly outstrips supply in the US and Germany
• UK likely to see a situation similar to that of Germany and the US
• Stepstone CEO Sebastian Dettmers: “Investing in better and more attractive jobs will give companies an edge in terms of recruiting people, the key factor in today’s market”

Düsseldorf, April 5, 2023. The growing shortage of workers is putting the post-pandemic economic recovery at risk in major industrialized countries, including the US, Germany, and the UK. A study by The Stepstone Group, a leading digital recruitment platform, found that the supply of jobs in the US and Germany, for example, continued to significantly exceed the number of workers available. This is acting as a brake on the upswing following the economic slump triggered by the pandemic. “The phenomenon of a people shortage had begun to emerge before the outbreak of coronavirus. This lack of workers is now stalling the economic recovery,” says Sebastian Dettmers, CEO of The Stepstone Group, commenting on the study’s findings. “However, there are some very promising approaches that may offer a solution in many areas. Recruiting becomes mission critical for companies as they compete for talent.”

Major challenges ahead for recruiters in the US

A huge gap has opened up between the supply of jobs and the number of people in employment in the US, which saw a vast wave of job losses at the start of the pandemic. However, the world’s largest economy swiftly bounced back within a year. As a result, demand for workers has significantly outstripped supply since 2021. Despite the US Federal Reserve raising interest rates, the US added 500,000 new jobs in January of this year and a further 300,000 in February. “Recruiters in the US will continue to face major challenges going forward. There are no indications that the situation will return to normal in the foreseeable future,” says Andrew Flowers, a job market expert at Stepstone’s US subsidiary Appcast.

Germany: vacancies and number of people in employment at record levels

The Stepstone study found that the situation in Germany was similar to that in the US, albeit with a smaller gap between the supply of jobs and number of workers. During the pandemic, Germany recorded only a slight fall in the number of people in employment, partly thanks to short-time working arrangements. Now, this number exceeds the pre-pandemic level by more than a million. Moreover, the number of vacancies has reached new heights, holding back the economic recovery. A lasting improvement in the job market situation for employers appears very unlikely. As well as vacancies, the number of people in employment has also climbed to a record high in Germany. Nevertheless, the number is not expected to be sustained at this high level owing to demographic change.

More foreign workers in the UK than before Brexit

According to the Stepstone study, the gap between worker supply and demand in the UK is not yet as wide as it is in the US and Germany, although a similar trend is emerging. This is partly because of Brexit, the consequences of which include a huge shortfall in truck drivers and people to work in manual roles. As elsewhere, UK employers across a range of sectors are finding it very difficult to fill vacancies. On a positive note, however, more foreign workers are finding jobs in the UK than before Brexit.

“Technology-driven productivity gains alone will not be enough to overcome the challenges created by the people shortage. The 21st century will see unprecedented levels of competition for immigrant workers. In the long term, countries that are attractive to foreign skilled workers, such as the US, Australia, and Canada, will be in a better position,” states Stepstone CEO Dettmers. “This also opens up opportunities. By investing not only in automation but also in continuing professional development and thus in better and more attractive jobs, companies will gain an edge in terms of recruiting people, the key factor in today’s market.”

For more information:

https://www.thestepstonegroup.com/en/insights/the-worker-shortage-has-been-a-problem-for-years-and-is-now-hurting-the-economic-recovery/

About The Stepstone Group 

The Stepstone Group is a leading digital recruitment platform that connects companies with the right talent and helps people find the right job. The Stepstone Group connects more than 100 million job applications with over 160,000 employers every year. With its integrated platform, the Stepstone Group automates the recruitment process and offers AI-based solutions that cover the entire recruitment process – from sourcing to engaging and hiring. In 2022, the Stepstone Group generated revenue of around €1 billion. The Stepstone Group operates in more than 30 countries - including StepStone in Germany, Appcast in the USA and Totaljobs in the UK. The company is headquartered in Düsseldorf, Germany and employs around 4,000 people worldwide.

Contact

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