Adecco talks: 2024 economic outlook, call center trends, and men opting out of work

Employment is normalizing and stabilizing. What does the data mean for employers?

The outlook for 2024 is marked by deaccelerating job growth, stabilizing wage trends, and a labor force that’s exceeding pre-pandemic levels. Fortunately, we are starting to see employment normalize on all fronts – but it is impacting consumer spending and business confidence.

Jobs

Job growth is expected to continue declining, with companies reducing labor usage amid a dip in consumer spending. This means you may be hiring less talent, which means retaining that talent is important. When recruiting new employees, schedule flexibility is crucial as it now ranks as one of the top benefits sought out by employees.

Employment

The Labor Force Participation Rate has slightly recovered, with 25-54-year-olds exceeding pre-pandemic levels. For older Americans, the recovery is a bit slower. Projections indicate the participation rate could grow overall at 0.4% in the coming decade.

Wages

Wage growth is cooling, with companies budgeting 4% salary increases in 2024, which is down from 4.4% in 2023. Employees are starting to demand pay flexibility, such as early wage access.

Trends in call center jobs

Customer Service is considered a top industry for remote work opportunities in 2024.  In fact, 98% of workers say they want to work remotely at least some of the time.

While job postings for remote call center representatives are below their peak in June 2022, they are still 228% higher than pre-pandemic.

Remote work environments for call center agents can come with obstacles. Four main challenges include:

• 1. Limited access to resources
• 2. Increased distractions
• 3. Communication challenges
• 4. Technical difficulties

A note on improving agent motivation for stronger customer service

• Seeking feedback: Encourage employee feedback to understand how to make work more meaningful. Act on the feedback to modify responsibilities and strategies accordingly
• Recognizing workers: Recognition serves as a motivator. Establish formal recognition programs and cultivate a culture that celebrates employee successes in real time
• Setting clear expectations: Clarity in expectations reduces frustration and enhances motivation. Discuss and set clear expectations to eliminate uncertainties

Men are out of the labor force

Men without four-year degrees between the ages of 25 to 54 have left the workforce more than any demographic. Around seven million “prime age” men have decided not to participate in the labor market.

Automation and offshoring in manufacturing since the 1960s may be partially to blame for the decline in male participation in the workforce, among other reasons.

Since 1980, there has been a decline in labor force participation among men, while the opposite trend is observed among women. The initiatives aimed at boosting women's participation in the workforce have proven successful over time and could yield similar results if implemented for men.

Let’s talk about your 2024 goals

The new year is here. Whether you’re looking to reimage your hiring or workforce strategy, diversify talent or would like labor or market insights so you can make informed decisions about your business, make sure you have a staffing partner who can help you navigate the path to success. Reach out to get started!