When the recession hits, insecure jobs are expected to be rejected and smaller companies have already lost their attractiveness in favor of larger companies, according to unique figures from the tech company Gritify. One of the big questions ahead of 2023 and beyond is how the high inflation and rapid rise in interest rates will affect the labor market. Gritify, which offers a unique platform for companies and job seekers to find each other, has explored its data to find answers.
– The effect of a recession on unemployment always occurs with a certain delay. But we have already identified two concrete trends that confirm that a concern has entered the job market, says Carl-Magnus Fernqvist, CEO at Gritify.
One trend is that companies with fewer than 20 employees have lost attractiveness, relatively speaking, when Gritify compares 2021 and the first half of 2022 with the subsequent period to date.
– On our platform, the percentage of job candidates who answer yes to continued dialogue with smaller companies is 17 percent lower in the latter period, which coincides with the inflation and interest rate shock. At the same time, larger organizations are perceived as more attractive compared to 2021, says Carl-Magnus Fernqvist.
That larger companies are more attractive than small ones is especially clear in the IT sector. The data shows that the percentage who agree to further dialogue with smaller IT companies is 45 percent lower during the latter period.
– At the same time, the positive feedback to companies with more than 100 employees has increased relatively by 24 percent. It is thus clear that job candidates have begun to prioritize security at the expense of exciting startups.
The second trend Gritify identified is that many self-employed people are now looking for employment. The proportion of registered self-employed persons on the platform is 50 percent higher during the latter of the comparison periods.
– This also confirms that safety has become more of a priority. Our figures thus show that there has already been a shift in the labor market that smaller companies have to deal with. One way is to think through which values they choose to highlight in their communication to talents. It is perhaps more important to have safe employment conditions and benefits such as an occupational pension rather than balls, pinball games and cool company trips, says Carl-Magnus Fernqvist.
Launched in 2020, Gritify provides a unique way for companies and anonymous job candidates to find each other. Candidates are initially anonymous but have indicated what might make them interested in new career opportunities. If a company has a job opportunity that matches the candidate’s wishes 100%, the company gets the opportunity to send a job request to the anonymous candidate who then answers yes or no to further dialogue. Gritify’s candidates consist of civil servants with an average of 3.5 years of post-secondary education and 7.5 years of qualified work experience. In 2022, the number of candidates on Gritify’s platform increased from 10,000 to over 20,000 people.