January Job Market Dynamics: Insights amidst annual trends
January Job Market Dynamics: Insights amidst annual trends
A Newsletter from Aura Workforce Analytics
💡 Start of a new year is always a busy and exciting time in the job market, with recruitment starting to ramp up again after typical business slowdown during December holidays. 💡 Looking at the typical dynamics of the labor market in January vs rest of the year can provide valuable insights for individuals, looking for a career change, as well as for companies, looking for new talent.
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We at Aura decided to look at the job market trends in January across industries and countries, highlighting this month's dynamics against broader trends observed in other months. By spotlighting the shifts and patterns in job postings and hires, we uncover the underlying insights steering the job market's trajectory.
To generate these insights, we have looked at data on job postings in the last five years (2019-2023), focusing on January and comparing it to the data from the rest of the year, with a goal to identify differences across three lenses: industries, companies and geographies.
In terms of job postings across various industries, staffing & recruiting, alongside IT & services and hospitality emerged as the sectors with higher activity in January (compared to the rest of the year), hinting that certain sectors offer a window into the broader employment landscape over time (staffing & recruiting, as well as IT & services are among the top-hiring industries, as highlighted in our [Industry Hiring Trends in November](https://www.linkedin.com/pulse/aura-industry-hiring-trends-november-2023-aura-ceo-gqdee/) report).
In contrast, government administration, retail and human resources show lower activity, signaling that for these sectors recruitment activities start picking up the pace later in the year.
Industries with higher recruitment activity in January compared to the rest of the year:
Information Technology Services (8% Increase): A substantial surge suggests robust expansion, potentially fueled by technological advancements or increasing digitalization demands.
Hospitality (5% Increase): A notable surge signifies potential revival or strategic shifts within this industry, marking it as an area of interest despite the relatively lower percentage compared to IT services.
Staffing and Recruiting (3% Increase): The growth in January reflects heightened activity, potentially signaling evolving workforce demands or strategic recruitment initiatives.
Industries with lower recruitment activity in January compared to the rest of the year:
Government Administration (-8%): A notable decline highlights potential shifts in hiring dynamics, warranting further examination; partially this could be driven by fiscal year differences for some governments (e.g., Oct-Sep for USA) — where recruitment is most active immediately after budget is approved and slows down in January.
Retail (-2%) and Human Resources (-2%): Declines may signal challenges or strategic realignments within these sectors.
We have also looked at the recruitment activity on company level, identifying those with highest number of job postings in January.
Most of the companies in the top-10 are staffing & recruitment agencies, representing majority of the concentrated workforce demand – Randstad, Adecco and ManpowerGroup to name a few. Amazon and NHS are also in the top-10 companies with highest number of job postings (due to large workforce size), being the only companies not focusing on staffing and recruitment.
When comparing January job posting data with the rest of the year average, United States typically see an increase (+3%), along with Great Britain (+8%) and India (+10%), showcasing steady or potential growth opportunities, reflecting positive hiring trends. Substantial downturns underscore potential challenges or shifts in Brazil’s (-18%) and Mexico’s (-14%) economic or industry-specific landscapes.
What does this mean for employers and job seekers?
The data-driven insights from January serve as pivotal benchmarks, providing employers and job seekers with actionable intelligence essential for informed decision-making. These trends offer a comprehensive understanding of the evolving landscape, enabling strategic navigation through the dynamic job market.
Employers can leverage multifaceted recruitment data across industries, companies, and geographical locations to derive informed insights. This data-driven approach gives employers an opportunity to select optimal periods for talent acquisition, strategically aligning recruitment efforts during peak talent competition seasons.
For job seekers, these analytical insights serve as a compass, aiding in the selection of potential career transitions. Whether pivoting towards a new industry, exploring opportunities in different companies, or contemplating geographic shifts, these insights facilitate informed decision-making. Job seekers can effectively assess areas of interest, making calculated career moves aligned with the evolving job market dynamics.
At Aura, we support this type of analysis by making workforce data readily available, enabling comparison of relevant metrics between cohorts of companies & candidates to develop a deeper understanding of workforce trends and drive meaningful change.
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Abylay Jetmekov Product Manager, Aura
Note: All information mentioned in this report comes from publicly available data; if you believe the information on your company is incorrect, please reach out to us at: firstname.lastname@example.org
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