The Great Resignation:

Workers want something different, and they’re voting with their feet. According to the U.S. Bureau of Labour Statistics, resignations hit an all-time high of 4.5 million in November 2021. In the same months, the Bureau reported 10.6 million job openings, with roughly 65 unemployed workers for every 100 jobs. By December the unemployment rate was just 3.9%, down from 6.7% the previous year, and the lowest since February 2020 when the rate was 3.5%.  

Hiring Challenges: 

The Great Resignation has left companies in the lurch, with many planning to hire people to fill empty roles. But, according to Upwork research, that hiring has proven difficult, especially in positions that are key for organizational transformation and growth. 

In response, more companies are offering bonuses to new hires and including salary transparency in their job postings. Employers are also “down credentialing”—lowering education requirements and offering on the job training to reach more candidates. 

(Source: The Conference Board and EMSI Burning Glass)

• 68% of companies plan to hire in the next 6 months.

• 40% of companies plan to hire for IT and networking roles in the next 6 months, more than any other roles.

• 61% of managers said it's hard to hire for data science and analytics roles, the highest among all roles. Finance (57%) and accounting (55%) rounded out the top-three most difficult roles to hire for.

• 50% of managers said turnover within their team has increased compared to before the COVID-19 pandemic.

The Freelance Factor:

With hiring challenges widespread, and more people deciding to forgo the traditional full-time job in favour of a freelance career, many organizations are turning to independent talent to close skill gaps and keep their plans on track. 

• 54% of managers who have leveraged remote freelancers are very confident in their organization’s ability to respond to disruption.

• In comparison, 45% of managers who have not engaged remote freelancers are very confident.

• Managers who engaged more remote freelancers in the past 12 months are much more confident in their ability to hire than those who engaged fewer remote freelancers (81% vs. 58%). 

• 56% of non-freelancers say they are likely to freelance in the future.

• 20% of respondents to Upwork’s Great Resignation study, which surveyed people working mostly remote, are considering freelancing. That represents 10 million Americans.

  Source: January 2022 Upwork Labor Market Trends and Insights analysis