Hiring Growth Will Continue to Increase – But Are There Enough Candidates to Support It?

If you felt like you were in need of more candidates than ever in 2021, hold on to your hat: hiring volume is expected to increase even more in 2022. After surveying more than 400 hiring professionals across industries, they predict that hiring volume will increase by 5.1% the next year.

Some industries will continue to see explosive growth like they did in 2020, like technology and staffing/recruiting firms (up 42% and 28%, respectively). This makes sense – COVID-19 has forced us to be more reliant on technology for just about everything, from how we work, how we shop, and how we connect with each other. The Great Resignation has resulted in more businesses to rely on staffing and recruiting services more than they had been in recent years. Other industries that expect to hire more people include professional services (up 11%), the government and public sector (4%), and construction (2%).

But the need for applicants isn’t going to be felt equally by every industry. Hiring volume is expected to dip for Wholesale and Distribution (down 26%), as well as Transportation and Logistics (down 16%). Continued supply chain issues and industry-based burnout could be contributing to the significant drop in applicants these industries are experiencing. These aren’t the only industries expecting to see fewer applicants. Real estate (down 14%), finance (down 10%), manufacturing (down 7%), and healthcare industries (down 7%) are also on the decline.

And whether it’s a high-growth industry or not, everyone is having trouble finding enough quality candidates. In 2021, 81% of hiring professionals across industries reported struggling to find high quality job applicants, up 19% from 2020. Plus, 70% reported not having enough candidates at all, regardless of quality – increasing by a staggering 51% in the last 12 months. To make straits even more dire, employee turnover increased as well, with 57% reporting difficulty retaining their current workforce, up 27% from last year.

The mismatch of high candidate demand and a drained candidate pool means hiring in 2022 will continue to see more than its fair share of challenges – the talent shortage of 2020 appears to be far from over. It will be interesting to see how these industries overcome these hurdles to attract and hire the best candidates, whether it’s increased salaries, improved benefits, or continued flexibility as they navigate the tumultuous waters of pandemic hiring.

Want to know what else we found? Download your copy of the 2021 Hiring Benchmark Report to see for yourself.