7 labor market trends in 2021

The events of last year have a great impact on this year's job market. COVID-19, or corona, has very much impacted everyday life, the economy and the job market. But what else awaits us in the coming months? The labor market trends below show what you can prepare for right now

#1. COVID-19

Last January, some might have heard about it, but no one could have predicted what was in store for us. From economic prosperity, the Netherlands went from corona crisis to sharp contraction in an unprecedentedly short time.

Last year, the Dutch economy grew by 4.3 percent shrunk. Economic growth of 3 percent is then projected again for 2021, but it is slow in coming and heavily dependent on easing measures.

#2. Many (youth) unemployed

The coronacrisis is creating uncertainty in a lot of industries. Even though there are industries that are performing better than ever, many companies are having to reorganize or close their doors (temporarily). Because of these developments, unemployment is rising sharply.

The largest increase in unemployment is among young people. Temporary contracts and working as temps or on-call workers are usually the first to lose their jobs in difficult times. They also work a lot in the sectors hit hard by the measures, think of the hospitality industry.

#3. Generation changes

A development that provides shift in the labor market is the changing of generations. In the next 8 years, 1.9 million baby boomers will leave the labor force and only 1.6 million new workers will enter the market. This will create major demographic changes in the workplace and increase Of vacancies and labor market space.

Disadvantage is that the increase in retirees puts a significant strain on the economy. In addition, many baby boomers are retiring in engineering, healthcare and education. Vacancies in these sectors are already difficult to fill and this is only likely to increase.

#4. Recruitment and retraining

If the first three trends are summarized, 2021 consists of a economy with much uncertainty and measures with considerable impact for many sectors. Demand for workers is dropping in some sectors, while demand is increasing in others. A labor market is emerging with, on the one hand increasingly unemployed, but on the other hand an increase in tightness in other sectors.

Employers in 2021 will have to start taking into account that job seekers' work experience and education will be less well matched to open positions. One development within recruitment is that there will be more focus on soft skills.

The trend that is capitalizing on this hybrid labor market and is becoming more prevalent is retraining. Training and retraining is becoming extra important and job postings will more often include training and training budgets.

#5. Video application and onboarding

Another consequence from corona on the job market is the changing interview process. How does recruiting work in a society where it is recommended that personal contacts be kept to a minimum?

A trend that is likely to continue for some time is that many employers and recruiters are switching to video calls for health and safety reasons. In this times, video interviewing is not only a convenient alternative to a face-to-face job interview, it is the new standard. This requires flexibility from both the employer and the job seeker. Should you be looking for a new challenge, it is crucial to be aware of how this all works.

#6. Growth work platforms

Enough about the effects of corona. One development that is becoming increasingly important and will continue its march into 2021 is the growth of work platforms. Platforms such as FlexHero, Freelance and Temper where assignments come directly to potential performers. This way of doing business is growing rapidly in popularity.

Digital platforms accelerate this by cleverly matching supply and demand. In the United States, this is known as the gig economy or, in Dutch, platform economy. This trend will continue to grow strongly this year.

#7. Technological developments

The digital world never sits still, and this year will see continued development.

Google for Jobs

It finally came to the Netherlands in 2020, and it will become an increasing part of the job landscape in 2021. 73 percent of job seekers start their search for a new job on Google and Google for Jobs is going to be a leader in this. The technology and capabilities will certainly be optimized in 2021.

Apply via WhatsApp

With over 12 million users, Whatsapp is clearly the list leader of social media in the Netherlands. Not surprising also that more and more employers and recruiters give candidates the opportunity to apply through the means.

Video in recruitment

The use of videos in recruitment continues to increase. Channels such as TikTok, Instagram Reels or LinkedIn Stories, are capitalizing on the popularity of videos. Whether it is for the recruitment of new people or for Employer Branding, increasingly video is being used.

Artificial Intelligence

Artificial Intelligence is a concept where computers perform tasks that normally require human intelligence. Nowadays, Artificial Intelligence is also increasingly used to speed up the recruitment process. This growth will continue in 2021.

Source: wetalent.com