Global disruptions caused by the war in Ukraine, soaring energy prices and the pandemic have brought new challenges for businesses, but also new opportunities. While post-pandemic economic growth diminished unemployment, with increasing numbers of job vacancies, the labour market tightened in many advanced economies, with companies battling for skilled employees. Businesses have been swift to adapt to disruptions, turning to online and innovative solutions, expanding e-commerce, and embracing digitalisation and the gig economy.
Tight labour market and robust rise in wages
Swift post-pandemic recovery in 2021 fuelled solid growth in demand for labour. For instance, as of the second quarter of 2022, the US registered nearly 12 million job vacancies, leading to 2.1 job vacancies per one unemployed person in the country, compared with 1.3 in the same quarter of 2019. Lack of labour force might limit businesses’ ability to ensure operational stability and productivity growth, and pressure profitability, as companies are forced to raise employee rewards to attract and maintain workers. Click here to read more