Talent Market Insights - August 2024

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Welcome to our Talent Insights Monthly Digest!?Each month, we deliver a talent intelligence newsletter filled with market updates, in-depth analyses, practical resources, and recommended reads. Our goal is to help you stay ahead in the dynamic talent landscape, navigate your career success, and empower your team. Explore the latest talent management trends, gain valuable insights, and access essential tools for both your career advancement and organizational excellence.

?? Key Indicators ??

Canadian Employment:

• Employment Rate: The Employment Rate fell 0.2 percentage points to 60.9% in July, higher than the long-term average of 60.4%. (Statistics Canada)
• Unemployment Rate: The unemployment rate also remained unchanged at 6.4%, as a slight decline in the labour force (-0.1% month-on-month) offset job losses.?(Statistics Canada)
• Interest Rate: The Bank of Canada cut its key interest rate by 25bps to 4.5% in its July 2024 meeting, as expected by a portion of the market, extending the central bank’s 25bps cut from the June meeting after having left the hiking cycle’s terminal rate of 5% for 10 months. (Bank of Canada).

U.S. Employment:

• Employment Rate in the United States decreased to 60% in July from 60.10% in June of 2024.?(U.S. Bureau of Labor Statistics)
• The Unemployment Rate rose to 4.3% in July of 2024 from 4.1% in the previous month, the highest since October of 2021, and above market expectations that it would remain at 4.1%. In the meantime, the labour force participation rate edged higher to 62.7% from 62.6%. (U.S. Bureau of Labor Statistics)
• Interest Rate:?Federal Reserve Chairman Jerome Powell gave clear signals that the central bank will cut its interest rate in the September meeting during his speech at the Jackson Hole Economic Symposium. The Chairman noted that the US labor market is cooling quickly following the softer jobs report from July and the downward revision to payrolls this week. Powell also noted that the FOMC has gained further confidence that inflation is slowing to the central bank’s 2% target, warranting a clear view that it is time to adjust monetary policy to less restrictive conditions. The speech followed minutes from the Federal Reserve's last meeting, which suggested that most policymakers agree that it will be appropriate to lower the Federal funds rate this quarter. (Federal Reserve Board)

?? The Market in Brief ??

Compensation & Benefits

• Aug 22: Argentina's Senate approved an increase in pension spending, challenging President Javier Milei's austerity measures aimed at reducing government expenditure.
• Aug 13: Nearly half of workers have taken or considered taking a "quiet vacation," where they secretly take time off without using paid leave, often due to feeling overwhelmed or fearing repercussions from their employers.

Employee Experience

• Aug 19: To effectively train new leaders in ethical decision-making, organizations should provide clear value propositions, implement mentorship programs, and offer ongoing education to ensure leaders align with company values and foster a culture of ethical decision-making.
• Aug 7: The "great detachment" phenomenon describes employees, especially younger ones, feel disconnected at work, and suggests strategies like team-building activities, shared meals, and effective communication to foster engagement and connection among both in-office and remote workers.
• Aug 7: Flexible work arrangements are more effective than telework alone in enhancing employee retention by improving work-life balance and engagement.

Recruitment

• Aug 21: Five9 is laying off approximately 180 employees, or 7% of its workforce, as part of a strategy to improve profitability and increase shareholder value.
• Aug 20: Quebec Premier Fran?ois Legault announced a six-month freeze on new temporary foreign workers for low-wage jobs in Montreal, starting September 3, 2024, to address concerns about resource strain and protect the French language, with exceptions for certain sectors like education and healthcare.
• Aug 20: Skip the Dishes and its parent company, Just Eat Takeaway.com, are laying off about 800 employees in Canada, including 100 from Skip the Dishes and 700 from its parent company's operations.
• Aug 19: General Motors is laying off a small percentage of Canadian workers as part of broader job cuts affecting over 1,000 salaried employees in its software and services units worldwide.
• Aug 15: Global News is facing more layoffs, particularly in British Columbia and Eastern Canada, as part of ongoing restructuring by Corus Entertainment, raising concerns about the impact on local news coverage.
• Aug 14: A report indicates that poor performance and skills mismatches are becoming significant factors in layoffs, with 73% of HR leaders considering or conducting layoffs in 2024
• Aug 14: Cisco announced a second round of layoffs in 2024, impacting 7% of its workforce, amounting to over 6,300 jobs, as it shifts focus to AI and cybersecurity.
• Aug 1: Intel is cutting over 15% of its workforce, amounting to more than 15,000 jobs, as part of a $10 billion cost-reduction plan following a quarterly guidance miss.

Diversity, Equity & Inclusion

• Aug 14: A UN report criticizes Canada's Temporary Foreign Worker Program as a "breeding ground for contemporary slavery," highlighting issues like power imbalances, exploitation, and inadequate worker rights protections.
• Aug 6: There has been a shift from Diversity, Equity, and Inclusion (DEI) to Merit, Excellence, and Intelligence (MEI) in hiring practices, emphasizing hiring based on merit rather than demographics, a concept popularized by Scale AI's CEO, Alexandr Wang.

?? Monthly Reading Picks ??

Book of the Month: "The Talent Code" by Daniel Coyle

The book delves into the secrets of developing talent and unlocking potential, making it a must-read for HR professionals, career coaches, and leaders focused on nurturing talent. In this book, Coyle explores the neurological mechanisms that contribute to skill acquisition and highlights the importance of deep practice, ignition, and master coaching in cultivating excellence. Perfect for anyone looking to understand the dynamics of talent development and apply them to nurture and retain top performers. [Get it on Amazon]

Upwork: From Burnout to Balance: AI-Enhanced Work Models

In the latest Upwork research, it was found that while 96% of companies are expecting to leverage AI to enhance productivity, these expectations and investments are inadvertently increasing workloads and contributing to employee burnout. The study reveals that 65% of workers feel overwhelmed by the new technology demands. To combat this, it suggests that organizations adopt AI-enhanced work models, leverage alternative talent pools, and focus on skills-based hiring to truly benefit from AI advancements.

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