Job Search & Hiring

2016 in Review: 5 Job Trends that Defined the Year

Glassdoor Team

Glassdoor Team

Glassdoor Team | Author & Career Expert at Glassdoor | Dec 15, 2016

If 2016 was your busiest hiring year in recent memory, you’re not alone. Our review of 2016 labor market trends confirmed that this year’s hiring spree was one of the longest on record. Dr. Andrew Chamberlain, Glassdoor’s Chief Economist, identified four other trends you may have encountered, such as a growth in tech roles and greater attention to pay. The annual tradition of looking back at the year allows us to see our accomplishments, review lessons learned, and identify ways to move forward. Here are the most important job trends of 2016 – and our takeaways on what they mean for employers. A remarkable year for hiring With remarkable gains, the economy turned a corner this year and continues to be strong and healthy. Unemployment is at its lowest since 2007, and we are in the longest streak on record for positive job gains. Takeaway: Every new you role you filled contributed to economic growth! Hiring is tougher than ever This tight labor market makes it tough for employers to hire. As of April, the economy set a new all-time record of 5.85 million unfilled job openings – the most since the BLS started collecting surveys of open jobs in 2000. The ratio of unemployed Americans to open jobs is 1.4 to 1, down sharply from July 2009 when that ratio was 6.6 to 1. With fewer unemployed people looking for jobs, sourcing is simply harder. Takeaway: If you met your 2016 hiring goals, you deserve congratulations for doing it in an extremely competitive market. If you didn’t, these extraordinary circumstances may explain why. Explosion of tech roles across industries An increasing number of traditional employers need to hire what have been typically considered tech roles – data scientists, software engineers, mobile developers, etc. Our technology-driven lifestyles mean that more employers in finance, retail, healthcare, etc., need employees that can derive insights from data, create a mobile app, or code a website. A tight overall hiring market and increased demand for tech talent makes recruiting those coding and analytics stars even more difficult. Takeaway: Companies that promote a compelling mission and strong employer brand stand out from the pack to attract top talent. Use your Free Employer Account on Glassdoor to promote your brand, and take advantage of our free software engineer job description to help you get started. Big push for pay transparency Transparency in the workplace isn't new, but in 2016 we saw a big push from policymakers for employers be more transparent about pay. New rules from the federal government will require some employers to disclose workers' pay by gender, race/ethnicity; and the SEC has new rules that will require disclosure of the ratio between CEO pay and median worker pay. In addition, products like Glassdoor Know Your Worth™ give job seekers and employees more negotiating ammunition. Takeaway: Increased attention on pay transparency and pay equity means job seekers and employees will come armed with information to job interviews and performance reviews. Be prepared. Finally seeing gains in Americans’ paychecks Despite significant and robust job gains across the U.S., wage growth has been fairly slow to catch up. But, some good news in late 2016 shows wages are on the right track to continue to rise for the U.S. workforce. Glassdoor's own salary data show a 3.1% year-over-year growth – the fastest pace in three years. Takeaway: When wages are on the rise, workers may be more likely to jump ship if they believe they can get paid more elsewhere. Make sure offers and raises are in line with current salary trends. Key Trends and Action Steps for 2017 After reviewing the past year, it’s time to set goals for next year. By taking these trends into account and combining them with your own data as well as expert predictions, you’ll be more likely to set achievable goals. Be on the lookout for our upcoming ebook 2016 Job Market Review and 2017 Predictions to find action steps on setting up a stellar plan for next year.
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Glassdoor Team

Glassdoor Team

Our team of savvy experts are here to help you, whether you’re navigating your career or working to make your company culture shine. Glassdoor has the unique insights and guidance you need to experience your best worklife. Stick around to learn how to prepare for an interview, negotiate your salary, develop DEI programs, engage your employees, understand the state of the job market, and more. Check out our community to share and learn from professionals just like you too.

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