The New Hiring Spike: Will It Continue?

Firms have had plenty of reasons to hold off on hiring. The skill sets needed to work with AI are in short supply. The presidential election is a tossup.

But hiring has picked up—and then some. In a surprise, the nation’s employers added 254,000 more employees in September than in August, according to the latest US government data. The unemployment rate fell to 4.1% from 4.2% in August. There are more than 159 million non-farm jobs in the US, an all-time high and a 1.5% increase over last year.

At this point, experts say, desperate organizations will hire anyone with specific skills, regardless of other priorities. “Technology roles, specifically cybersecurity- and AI-related roles, are in high demand,” says Ron Seifert, a Korn Ferry senior client partner and leader in its North America Workforce Reward and Benefits business.

Healthcare continues to be one of the biggest drivers of employment growth. The sector added 45,000 more jobs, while social-assistance roles in such areas as childcare or rehabilitation added another 26,500. “Nonprofit healthcare organizations, including academic hospitals, have been steadily growing,” says Liz Schaefer, a  senior client partner and practice leader in Korn Ferry’s Professional Search division with a focus on human resources. 

Other sectors that added significant payroll include leisure and hospitality (+78,000), construction (+25,000), professional services (+17,000), and retail (+16,000).

Companies have laid off fewer workers as well. So far in 2024, an average of 1.6 million US workers have been laid off per month, much lower than the 1.9 million per month laid off in 2019—which many experts regard as a very good year for both job seekers and employees.

In some instances, large companies may feel that they have too many management layers, but the number of people in management actually hasn’t changed much: It increased by only 6,400 in September to 2.57 million, nearly identical to the 2.56 million roles in September 2023.

Some organizations could be holding off on making significant hiring decisions until after the US elections. “A bunch of clients are waiting until after the election to reopen postings,” says Paul Fogel, a sector leader for Korn Ferry specializing in mid-level executive searches for consumer and technology firms. Indeed, about 20% of chief financial officers say their firms have postponed plans due to uncertainty around the election, according to a late-summer survey conducted by Duke University.

Depending on which candidate wins, some sectors could get boosts, or suffer setbacks, but experts say that organizations likely can adapt in any environment, assuming they know what that environment is. “Leaders don't care about the landscape, but they would like some certainty,” Seifert says.

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