Talent Market Insights - January 2025

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Welcome to the first 2025 edition of our Talent Market Insights!!????

As we embrace the new year, we're excited to continue delivering forward-thinking talent intelligence from across North America. Each month, we bring you expert insights on recruitment strategies, workforce trends, and career development. Whether you're scaling your team, optimizing your hiring process, or advancing your career in today's dynamic market, our carefully crafted insights will help you stay ahead of the curve and make 2025 your most successful year yet!

?? Key Indicators ??

?? Canada:

• Unemployment Rate:?6.7% in December, down?0.1?percentage points from November and below expectations of 6.9%, though it remained the second-highest reading since September 2021.
• Inflation Rate: Decreased to 1.80% in December from 1.90% in November of 2024.
• Interest Rate: The Bank of Canada cut its key interest rate by 50bps for a second consecutive decision to 3.25% in its December meeting, as expected by markets, to mark 175bps of cumulative rate cuts from this cycle’s peak of 5%.

???? United States:

• Unemployment Rate: Decreased to 4.1% in December of 2024 from 4.2% in the previous month, below market expectations of 4.2%.
• Inflation Rate: The annual inflation rate in the US rose for a 3rd consecutive month to 2.9% in December 2024 from 2.7% in November, in line with market expectations.
• Interest Rate: The Fed announced another 25bps cut to the federal funds rate in December to the 4.25%-4.5% range and signaled just two rate cuts in 2025, totaling 50bps.

?? Featured Insights ??

DEI in 2025: Navigating Challenges and Opportunities

As we enter 2025, the landscape of Diversity, Equity, and Inclusion (DEI) initiatives in the workplace is undergoing significant transformation. Recent developments reveal a complex interplay of corporate commitments, legal challenges, and shifting societal attitudes.

Current State and Trends

1. Corporate Reassessment: Major companies are reevaluating their DEI strategies in response to legal and political pressures. Notable examples include: 1) Meta has eliminated its DEI team and canceled equity and inclusion programs. 2) McDonald's is ending diversity goals for senior leadership and supplier diversity training. 3) Amazon has phased out several DEI programs by the end of 2024. 4) Walmart has ceased considering gender and race in supply chain evaluations.
2. Legal and Political Influences: The Supreme Court's decision on affirmative action in college admissions has had a ripple effect on corporate DEI policies. At least 19 pending state bills aim to curb DEI programming and initiatives. Texas has enacted a law banning diversity offices at public universities, effective January 1, 2025.
3. Employee Attitudes: Recent surveys show a slight decline in positive sentiment towards DEI efforts, with the share of workers who see DEI as "mainly a good thing" has dropped from 56% in February 2023 to 52% in October 2024.

The DEI landscape in 2025 is characterized by a complex interplay of corporate commitments, legal challenges, and evolving societal attitudes. While some companies are scaling back visible DEI initiatives, others are adapting their approaches to create more inclusive workplaces within the current legal and political framework. The future of DEI in the workplace will likely involve more nuanced, data-driven strategies that align closely with overall business objectives and legal requirements.

?? Practical Resources ??

??? Upcoming Webinars

AI for Employee Experience: What’s Working, What’s Not, and What’s Next

???Date: Tuesday,?Jan 28, 2025

???Time:?11:00 AM - 12:00 PM ET

???Focus: How organizations are leveraging AI to enhance employee experience.

????Register Here

ACA Compliance: Navigating the Latest Reporting Requirements, IRS Penalties, and Legislative Updates?

???Date: Tuesday,?Jan 28, 2025

???Time:12:00 PM - 1:00 PM ET

???Focus: Get insights on critical ACA compliance updates and state obligations.

????Register Here

The ILPL Digital Presence Framework and Integrating Generative AI

???Date: Tuesday, Feb 6, 2025

???Time:11:00 AM - 12:00 PM ET

?? Focus: Career development, digital presence, and AI integration.

????Register Here

?? Must-Read Reports

State of Employer Branding 2025 (HR.com)

?? Focus: Current and future trends in the HR space, top priorities for the coming year

?? Key Findings: 62% of HR professionals rate their employer brand as above average or excellent. Despite positive self-assessment, challenges in attracting and engaging employees persist.?

???Download the Report

2025 HR Trends Preview Report (McLean & Company)

??? Focus: Employer branding, talent acquisition, employee engagement

??? Key Findings: HR’s top priorities in 2025 are: 1) Developing leaders, 2) Retaining employees, 3) Controlling labor costs, 4) Providing a great employee experience, and 5) Recruitment.

???Download the Report

?? Recruitment & Workforce Updates ??

Hiring Trends

• Overall Decline: U.S. hiring announcements in 2024 were the lowest in nine years, with a 1.3% decrease from 2023.
• Sector-Specific Growth: Consumer electronics and motion pictures industries are seeing increases in U.S. job postings, defying the broader trend.
• Construction Sector: Maintains positive workforce growth, driven by the Inflation Reduction Act.

Layoffs and Restructuring

• Increased Layoffs:?31% rise in employees notified under the WARN Act in November 2024 compared to October.
• Biopharma Industry:?Companies like Notch Therapeutics, Apellis Pharmaceuticals, and Barinthus Biotherapeutics announced workforce reductions.
• Tech Sector:?Ongoing layoffs at major companies like Meta, Amazon, Google, and Microsoft?as part of industry-wide adjustments.

?? Legislative Updates ??

?? Canada

• Bill C-69: Strengthens prohibition against worker misclassification, affecting gig economy workers.
• Bill C-58: Bans use of replacement workers during strikes in federally regulated workplaces, effective June 20, 2025.
• Modern Slavery Legislation: Companies must report on supply chain structures and measures against forced labor by May 31, 2025.
• Pay Transparency: Ontario and British Columbia require salary details in job advertisements.
• Ontario Bills 149, 190, and 229:?Introduce?changes to employment standards, including recruitment, telework regulations and new leave provisions.
• Digital Platform Workers' Rights Act: Set to come into force in Ontario on July 1, 2025, this Act creates new standards around transparency, payment, dispute resolution, and protection from reprisal, to enhance protections and rights for gig economy workers.

???? United States

• USMCA Labor Provisions:?Require adoption of ILO-recognized labor rights and address workplace discrimination.
• H-1B Visa Program Modernization: Recent changes aim to streamline the H-1B visa approval process, including increased flexibility for U.S. employers in filling critical job vacancies., modernized definition of specialty occupation positions, and enhanced oversight and integrity measures, including USCIS authority to conduct inspections.
• Extension of Employment Authorization: DHS increased the automatic extension period of employment authorization for eligible noncitizens from 180 days to 540 days.
• Minimum Salary Increase: New regulations under the Fair Labor Standards Act (FLSA) have increased the minimum salary threshold for overtime exemption, effective January 1, 2025.

?? Monthly Reading Picks ??

1. "Co-Intelligence: Living and Working with AI" by Ethan Mollick. Explore how AI is transforming the workplace and learn strategies for leveraging AI to enhance creativity, productivity, and decision-making.
2. "The Squiggly Career: Ditch the Ladder, Discover Opportunity, Design Your Career" by Helen Tupper and Sarah Ellis. Challenge traditional career concepts and embrace the flexibility of "squiggly" careers with practical tools and insights.

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Disclaimer: Data and insights sourced from reputable industry reports and government statistics.