Affinity HR, a partner of PPAI for more than a decade, has released its mid-year labor market summary for 2023, which includes an in-depth analysis of the labor market and advice on where businesses need to remain flexible.

Click here to read the full labor market summary.

The Summary

One consistent refrain with the labor market at this exact moment in time is very similar to how many are looking at big-picture economic conditions: Things are not ascending as rapidly as they were in the very recent past, but they are still good compared to what we have come to expect in recent history.

  • The U.S. added 209,000 jobs in June 2023.
  • The unemployment rate was 3.6%.
  • That is less jobs added and a higher unemployment rate than the preceding months, but both numbers are considered significantly positive in the grand scheme.

The report also addresses the large-scale layoffs that you may have seen in headlines. While they are not a positive sign, Affinity HR suggests that it is not representative of the overall job market.

 “A lot of organizations really ramped up hiring during COVID and post-COVID and are now shedding some of those hires,” the summary states.

  • Microsoft laid off 10,000 employees recently but have hired 60,000 employees since 2020.

The summary warns employers against assuming that recent layoffs will make recruitment of employees easier in the second half of 2023. It will remain volatile.

“Understand the complexities of the current labor market – it’s not easy – and recognize that recruiting and retaining top talent will continue to present challenges,” says Susan Palé, vice president for compensation at Affinity HR.

All of this leads to a sort of continued give and take. Pierre Montaubin, CEO of Koozie Group, spoke recently to PPAI Media about balancing costs.

  • Deflation in China could potentially provide promo with short-term relief in terms of product costs.

“Costs are coming down, so that's going to be an interesting situation,” Montaubin says. “The labor costs stateside are not going to come down. So how are we going to position ourselves for 2024? Hard to say."

Affinity HR reminds us that labor market statistics can be difficult to glean because, at any given time, they can be geographically dependent.

“Identify the best resources to help you stay informed about labor market activity in the market(s) where you operate and consult those resources regularly,” Affinity HR states.

  • Anticipate a high demand for entry level candidates.
  • Evaluate your methods for applications – including LinkedIn and mobile-optimized applications.

Wage Growth Reports

The summary reports that wage growth projections have increased since initial estimates in January, according to information from the Economic Research Institute.

  • In April, the salary increase projections for 2023 were updated to 3.79% from 3.5%.
  • The salary structure increase went to 2.91% from 2.7%

These increases are not enormous, but they do point toward employees commanding higher wages for going to new jobs than they would for staying in their current jobs.

Affinity HR warns that – during this increased difficulty in recruitment – current employees cannot be forgotten.

“If raising pay is necessary to hire new talent, review pay levels for current, experienced employees to ensure internal equity and minimize salary compression,” the report states.

More Support For PPAI Members

Affinity HR Group not only organizes this information but also provides practical advice for employers looking to recruit and retain workers.

PPAI has partnered with Affinity HR over a decade by offering HR support to members at preferred pricing.

  • If you have questions about what Affinity HR benefits your PPAI membership could get you, reach out to Affinity@PPAI.org.