Albert Einstein once said, “There are two ways to live your life. One is as though nothing is a miracle. The other is as though everything is a miracle.”  For the last few weeks, a few slow down narratives are shaping the labor market

• The hiring freeze in Meta
• Some well-funded startups, such as Fast shutting doors
• Unicorn Cameo went through staff reduction (25%)

These narratives are not reflective of the macro labor market trends.  The global supply-demand gap for Technology and Digital job roles is still trending well over 4.5 million (Demand is way higher than supply) and is expected to grow significantly.  Meta hiring freeze ( as given in the annual statement) is a function of some of the challenges in the Ads market concerning signal losses in Apple iOS settings.  Even as they face challenges in the ad space, Metaverse is making significant progress from a technological advancement standpoint.  The launch of Wendyverse (a virtual Wendy’s restaurant) is an example of such progress in the Metaverse space.

But Narratives dominating the thought process are something unavoidable.  In the book Narrative Economics, Robert J Schiller states that Narratives dominate economic decisions.  The book argues that we cannot avoid human judgment about narratives for an optimal understanding of economic and labor market events.  Perhaps, we need to use this and understand what type of work will drive the world forward

Here are some Miracle Labor Market Growth Narratives that we believe will continue to accelerate the demand for the right talent

• Exponential growth in Deep Learning.  (simply defined, you can imagine this as any software that is written with large amounts of data, such as retail systems written by customer buying patterns or self-driving cars based on driver behavior)
• Technologies such as Gaming and Virtual worlds will emerge as an important place where people are expected to spend a lot of time
• Digital Wallets, Digital Banking, and Mobile payments
• The continuous expansion of Automation
• Hyper expansion of Cybersecurity Needs (Quantum)
• Rapid Digital transformation of Supply Chain, F&A, and Human Resources
• New forms of last-mile delivery, such as Drone Delivery
• The expected expansion in defense spending by various countries due to volatile geopolitical systems
• The rebirth of Europe from a Technology Startup perspective (Over 10,000 deals worth over €102.9 billion in 2021!)
• And the list goes on

So there are not enough people to accomplish what we need to accomplish

The labor market is working hard to respond, but it takes time. 

• The rapid expansion of Latin America and southeast Asia’s ecosystem

As a result, we should continue the Superhuman approach to Recruitment and Workforce planning and not be sidetracked by a few slow down narratives which will resolve

One of the critical aspects of Draup helping you in the superhuman approach is to help build models.  In the last few weeks, we have described the following models that can help both recruiters and workforce planners

• A Probabilistic approach based on different channels of hiring
• Signals Detection Model based on company and industry level disruptions model
• Skillspipe model that can help you understand the one that constricts the labor market by Job role
• Skills transition model (how skills evolve and how to target adjacent skills when the core skills are not available)
• A deep mapping of specific organizations (who is leading the specific function and who are the key players within that function or product)
• Skills Inventory mode (deep studying the available skills in your company)
• Market Sentiment Models that will help you align your Employee Value proposition

This portfolio of models will improve your common goals across Recruitment and Workforce Planning

We are introducing another model, called the Attrition Tracking Model, based on External data sets. 

As evidenced by external resume updates (which have a set of limitations)- it may be helpful to put together a consistent way of measuring movement.

The exact metrics may not be very precise, but they may yield interesting insights if we measure consistently.  We incorporate some heuristics (that a person may take up to 3 months before making a resume update etc.)

The focus is on utility value (table on the left given for illustrative purposes)