Magnit’s Summer/Fall 2024 U.S. Labor Market Report Reveals Talent Shortages and Increased Demand for Key Roles

Magnit, a leading provider of Integrated Workforce Management (IWM) solutions, has released its Summer/Fall 2024 U.S. Labor Market Report, revealing critical insights into the current labor market. The report shows a notable surge in demand for professionals skilled in enterprise architecture and compliance/controls frameworks, while hiring for marketing/business development and sales analysts has seen significant increases. These trends underscore how talent shortages and skill gaps are influencing businesses’ revenue-driving capabilities.

1. Key Findings from the Report:
   • Talent Demand Surge:
     • Enterprise architecture skills are in high demand, with a 9% year-over-year increase.
     • Compliance/controls frameworks have seen an 11% YoY increase in demand.
     • Significant hiring increases have been noted in marketing/business development (+36%) and sales analysts (+25%).
2. Overall Contingent Hiring Trends:
   • While overall contingent hiring volume is down YoY, there is a strategic focus on revenue-generating roles.
   • Marketing/business development roles have increased by 56% in 2024 compared to 2022.
   • With a potential rate cut and decreasing cost of capital, investments in data analysis-focused sales and marketing roles are expected to drive workforce benefits.
3. Regional Variations in Skill Availability:
   • Skill sourcing difficulties vary significantly by region and skill set.
   • Nursing specialties (e.g., conscious sedation, phlebotomy) and compliance/control frameworks are among the hardest to source.
   • Enterprise architecture skills, such as AWS and Kubernetes, are increasingly scarce.
4. Impact of AI on Job Roles:
   • AI is likely to affect job titles related to sales training, business analysis, pharmaceutical sales, financial analysis, and HR administration.
   • Generation Z and women express concerns about AI, emphasizing the need for transparent AI usage and training.
5. Challenges with “Blind” Sourcing Channels:
   • Project work (independent contractors, SOW) has risen by 16.8% of total contingent workforce spend in Q2 2024.
   • Increased rogue spend and misclassification risks are resulting in higher costs and operational inefficiencies.

Magnit’s Summer/Fall 2024 U.S. Labor Market Report sheds light on the evolving landscape of talent acquisition and management. As businesses navigate these challenges, focusing on skills-based hiring and strategic workforce planning will be crucial for achieving corporate goals amidst a dynamic economic environment.