Global labor market insights: May 2023 edition
Welcome to the May 2023 edition of our Global Labor Market Insights. This month, we will delve into the skills shortage in the semiconductor industry, which has become a significant concern recently. But first, let’s explore some general labor market trends worldwide.
Global labor market insights
In May 2023, the total number of job postings worldwide reached a staggering 18.0 million, showing a remarkable increase of nearly 20% compared to the previous month. This surge in demand marks the first significant growth in job postings in over three months and mirrors the levels observed during the latter half of the previous year. As we continue to monitor the market, it will be interesting to see how this volatility evolves in the coming months.
Regional job demand
Among the continents, South America stands out this month with a remarkable increase of 7% in global job postings compared to May 2022. In contrast, Europe and Asia are still lagging behind the demand levels recorded in the previous year, despite modest improvements in the figures from April 2023.
The United States, while experiencing a cooling down phase, has witnessed a decline of approximately 3 million job postings since our first report in February 2023, representing a decrease of 43%. However, other countries in the top-10 list have rebounded strongly from the previous month’s decline, with a substantial rise in demand of approximately 45% compared to April 2023. Notably, France and Great Britain have witnessed an almost twofold increase in job postings, each adding 650-700k job opportunities. It remains to be seen whether this surge is a temporary peak or the beginning of a significant recovery in the labor market.
Top jobs in demand
If you’re seeking to hire Warehouse Workers or Project Engineers, be prepared for intense competition, as both these roles have made it to our list of jobs with the highest demand in May 2023. Conversely, Electrical Engineers and Marketing Managers have left this list, indicating a favorable hiring period in these domains.
Global job postings surged by 20% in May 2023, marking the first significant growth in over three months. South America experienced a notable 7% increase, while Europe and Asia lagged behind. The US job market cooled down by 43%, but France and Great Britain saw a doubling of job postings. Warehouse Workers and Project Engineers were in high demand, while Electrical Engineers and Marketing Managers saw reduced demand. Monitoring volatility and adapting strategies will be crucial in addressing skills shortages and leveraging emerging opportunities.
Skills shortage in the semiconductor industry
So, the semiconductor industry faces a skills shortage, which has garnered attention due to its impact on various sectors, including automotive and telecommunications. A recent article from Silicon Republic highlights this concern:
- The skills shortage in the semiconductor industry could have long-term implications for the global economy, as these skills are in high demand across various industries.
- The skills shortage suggests that the global chip crisis may persist in the coming months or years, necessitating adaptation and resilience from industry and the economy.
Upon analyzing the HRForecast database for jobs in the semiconductor industry, we have observed a consistent growth in demand. Between June 2022 and May 2023, there was a 23% increase in job opportunities compared to the preceding 12 months, with a peak in September 2022.
Since the skills in high demand within the semiconductor industry are also sought after in other sectors, the skills shortage may indicate that the global chip crisis will persist in the coming months or even years. On a positive note, the EU has recently approved a €43 billion strategy to establish itself as a leader in the semiconductor industry. Given that the primary demand currently stems from the US and traditional Asian semiconductor hubs like Japan and Malaysia, this strategic move by the EU could contribute to alleviating the long-term skills shortage.
The global labor market in May 2023 experienced significant fluctuations, with various regions and countries showcasing diverging trends in job demand. Moreover, the skills shortage in the semiconductor industry has emerged as a critical concern, affecting multiple sectors dependent on semiconductor technology. As we navigate the evolving labor market landscape, businesses and policymakers need to adapt their strategies to address these challenges and seize the opportunities presented by changing job market dynamics. Stay tuned for further updates in the months ahead as we continue to monitor the global labor market.
Download the report to learn more about the roles and skills in demand in May 2023 and delve into the labor market trends concerning professionals in the semiconductor industry.