Top Labor market trends 2024: Artificial Intelligence, internationalization, and lifelong learning

• Artificial intelligence will continue to significantly change recruitment processes
• Companies must increasingly look abroad for skilled workers
• Career changers, lateral entry, and lifelong training increasingly important in the fight against skills shortages
• Companies must adapt to managing age-diverse workforces

According to the leading digital global recruiting platform The Stepstone Group the key recruitment trend for 2024 is the advent of new, leaner recruiting processes becoming increasingly dominant thanks to artificial intelligence. Additional top trends for next year will be the importance of migrant workers as a vital source of much needed skilled workers and elsewhere further shifts that will see a greater number of individuals changing careers, with lateral hires becoming more important for the labor market.

Artificial intelligence is becoming an increasingly important helper and tool not only for HR departments, but also for people looking for the right job. In view of demographic change, companies must also increasingly adapt to the management of age-diverse workforces.

Pressure for increased automation

The ongoing labor shortage has already put increasing pressure on HR offices in recent years - which is likely to intensify in view of challenging economic conditions. "To alleviate this pressure and at the same time become faster in the race for talent, we expect the tech trend in the HR sector to intensify further," says Dr. Tobias Zimmermann, labour market expert at The Stepstone Group. This is already happening. A recent Stepstone survey revealed that the review of application documents, the scheduling of interviews and contacting potential candidates are already being increasingly automated. Almost two thirds of the recruiters surveyed who have modernized their processes accordingly report that their work has become easier as a result.

However, Zimmermann believes that many companies are only at the beginning: "2024 will be the year of automation in recruiting," emphasizes the expert. The focus will be on initial contact with applicants and the automatic creation of job advertisements by small and medium-sized companies, which often have no or only small HR teams.

The search for talent beyond national borders is becoming increasingly important

In the search for urgently needed skilled workers, companies are increasingly likely to turn their attention to markets beyond their own national borders: Considering a shrinking working population domestically, Western economies are dependent on qualified immigration. "A global competition for talent is emerging. For HR managers, connections to international talent pools and a greater understanding of global market trends will therefore be crucial to stay ahead of the game," says Tobias Zimmermann.

Entry for career changers to be made easier

To close costly gaps in the workforce, many large companies have already relaxed their requirements for academic qualifications and started to recognize skills acquired in previous experience or through alternative learning methods. "We expect this to become more widely accepted, allowing companies to increase their inclusivity, innovation and adaptability," says labor market expert Zimmermann. In Germany, lateral entry as a teacher, educator or software developer should become easier. "Investing in training programs pays off for companies in several ways: They tap into larger talent pools, increase their attractiveness as an employer and increase their own adaptability and flexibility."

AI increases the value of face-to-face job interviews

According to The Stepstone Group, recruitment processes will also continue to change for job seekers because of artificial intelligence. Applicants can now use AI to write cover letters and prepare specifically for interviews, while recruitment tests and tasks may become less valuable or must be adapted. "The personal interview about the vacancy is therefore becoming increasingly important. It is therefore important for recruiters to shorten the time until the first meeting as much as possible," emphasizes Zimmermann.

Companies must pay attention to an age-friendly working environment in future

In view of demographic change, the effective collaboration of people in separate phases of life is becoming increasingly important.In Germany, for example, the proportion of over 64-year-olds in the total population will be around 30 percent by 2050. "The value of an age-friendly and intergenerational working environment will be hard to overstate in the future. Workforces are getting older and more age-diverse," says expert Zimmermann. This includes Lifelong learning opportunities, flexible retirement and comprehensive health, social and pension benefits.

Click here for the detailed HR trends 2024 from The Stepstone Group:

https://www.thestepstonegroup.com/en/insights/hr-trends-2024/