What HR needs to know about the final jobs report of 2023

The December jobs report, released Friday, shows the US economy finished the year strong, with figures blowing past economists’ expectations.

The economy added 216,000 jobs in December, according to the Bureau of Labor Statistics (BLS), more than the 160,000 jobs economists projected, according to CNN. The unemployment rate was unchanged at 3.7%.

“The prognosticators have, throughout the year, underestimated what’s going on in the labor market,” Lori Wisper, managing director at financial services firm WTW, told HR Brew. “We’ve had a really strong labor market for 2023.”

Zoom out. Despite several rate hikes by the Federal Reserve, the labor market grew by 2.7 million jobs last year, a dip from the pandemic-era boom of the previous two years, but more than any other year since 2015, NPR reported.

“HR pros need to understand that the market isn’t looking like a recession is going to happen any time soon, and the economy is in better shape than previously advertised,” Trevor Bogan, regional director of the Americas for Top Employers Institute USA, told HR Brew via email. “There will be an opportunity to grow your employee size within your organization, and this is a good time to effectively strategize with your internal recruiting and talent acquisition teams.”

Thinking more broadly about where to hire from will be key to winning the talent war in 2024, Bogan noted. HR pros, he said, shouldn’t be afraid to source talent from nontraditional pools, such as “older generations, those returning after long-term caring responsibilities, following non-linear career paths, returning from long-term unemployment, and those with a criminal record. Also educating themselves on the neurodivergent population.”

“Hire more on capabilities than qualifications,” Bogan said. “Hiring will continue to rise for 2024, but identifying strong talent and talent that wants to work traditional roles will have its increases and decreases. It is a good time to prepare to identify Gen Z candidates, soft skills, and broadening DE&I to fill open opportunities.”