Thinking of Changing Careers? Here's Who's Hiring Now

The job market is red hot. There were 11 million job openings and 6.5 million hires in October 2021 alone. Similar numbers for openings and hires have been posted since the summer. 

And while much has been written about the “Great Resignation,” job departures are only half of the story. Record-setting job openings and a record pace of hiring are the other half. 

So which industries and occupations are growing fastest? 

In October,

• 1.8 million job postings were open for health care and social assistance roles,
• 1.6 million job postings were open for accommodation and food services roles (which includes restaurants and hotels), and
• 1.1 million job postings were open for retail roles.

That’s according to data from the Bureau of Labor Statistics.

Those were also the industries that saw the most hires in October. In just that month,

• 1.1 million hires were made for accommodation and food services positions,
• 867,000 hires were made for retail positions, and
• 698,000 hires were made for health care and social assistance positions.

In terms of specific occupations, job postings in human resources, loading and stocking, production and manufacturing, and software development increased around 100% since January 2021, per Indeed.

Software engineers, project managers, and salespeople made up the largest percentages of roles hired between April and June 2021, according to data collected by LinkedIn. 

Another factor for job seekers to keep in mind is the rapid growth of COVID-19 vaccine requirements showing up in job postings -- although less than 1% of job ads on Indeed include a vaccine requirement. 

Key findings

• There were 11 million non-farm job openings and 6.5 million non-farm hires in October 2021. 
• Over one million jobs were open in the following industries in October: health care and social assistance, accommodation and food services, and retail. 
• Over one million hires were made in the accommodation and food services industry in October 2021. The retail industry hired 867,000 workers and 698,000 were hired into health care and social assistance roles.
• Software engineer, project manager, and salesperson were the most common titles of new hires on LinkedIn between April and June 2021. 
• Job postings on Indeed for human resources, loading and stocking, production and manufacturing, and software development are up around 100% since February 2020. 
• COVID-19 vaccine requirements are quickly growing on job postings, but still appear on less than 1% of those posted on Indeed.

There were 11 million job openings and 6.5 million hires in October 2021

In October alone, there were 11 million open job openings and 6.5 million hires, both near record levels. 

Openings and hires saw a sharp drop in March and April 2020 as the COVID-19 pandemic swept through the United States. 

Hires peaked in May 2020 at just over eight million, while openings have steadily risen since the spring of 2020. May and June 2020 were the only months since the start of that year in which there were more hires than openings. 

Since June 2020, the gap between job openings and hires has gradually grown to record levels. In response, employers have raised wages and offered other incentives to lure in prospects.

Data source: Bureau of Labor Statistics (2021).

Over one million jobs were open in health care and social assistance, accommodation and food services, and retail 

Three industries heavily impacted by the pandemic saw the largest number of job openings and hires in October 2021: accommodation and food services, retail trade, and health care and social assistance. 

Each of those industries had over one million openings, according to the Bureau of Labor Statistics. Accommodation and food services hires were over one million as well, as Americans are returning to restaurants and hotels. Nearly 900,000 hires were made for retail store occupations as in-person shopping picked up again. 

Health care and social assistance jobs have been in demand since the start of the pandemic and remain so, with 1.8 million openings and 698,000 hires in October. 

Data source: Bureau of Labor Statistics (2021).

Software engineers, project managers, and salespeople were the most-hired employees on LinkedIn between April and June 2021

Software engineer was the most common title of new hires made between April and June, according to data collected by LinkedIn. 

Just over 3% of hires made in those months were software engineers. Nearly 2% were project managers, 1.6% were salespersons, 1.5% were account executives, and 1.4% were real estate agents. 

Keep in mind that LinkedIn users have some unique characteristics that can influence their data compared to the rest of the workforce.

They’re more likely to have a college degree, make $75,000 or more, and be in upper management than the general workforce. LinkedIn is also used for marketing and networking, which can attract people with particular occupations. 

Data source: LinkedIn (2021). 

Job postings in human resources, loading and stocking, production and manufacturing, and software development are up 99% or more since February 2020

Job postings can provide another angle to look at which industries and jobs are growing fastest.

On Indeed, job postings in the human resources, loading and stocking, and production and manufacturing industries are up over 100% over the past year. 

Software development job postings are up nearly 100%, as well. 

Logistics support job ads have increased 90% since February 2021 as companies scramble to manage supply chain crunches across the pandemic economy. 

Since February 2020, just as the pandemic was beginning in the United States, job postings in the food preparation and services sector are up 116%. 

Ads in the installation and maintenance sector, veterinary sector, and security and public safety sector are each up over 100% from the start of the pandemic as well. 

Data source: Indeed Hiring Lab (2021). 

Teaching, JavaScript, curriculum development, and account management were the most sought-after skills for trending jobs between April and June 2021

The most important job skills for the top trending jobs on LinkedIn are teaching, the programming language JavaScript, curriculum development, account management, and sales management. 

Understanding how to work with investment properties and first-time home buyers are also top-ten skills -- no surprise, given the red-hot housing market.

Data source: LinkedIn (2021). 

Microsoft, Amazon Web Services, Facebook, and JPMorgan Chase led in hiring on LinkedIn between April and June 2021

Microsoft, Amazon Web Services, Facebook, JPMorgan Chase, and Apple made the largest number of hires on LinkedIn between April and June. 

Large companies in industries that have seen some of the fastest recent job growth dominated the list.

In addition to Microsoft and AWS, Apple and Oracle were among the top 20 for new hires on LinkedIn between April and June as the pandemic continues to buoy demand for technology solutions. 

Financial services companies like Fidelity Investments, Northwestern Mutual, Wells Fargo, Citi, and Morgan Stanley each cracked the top 20 as well. 

Real estate companies such as Keller Williams Realty, eXp Realty, and Compass were among the companies that made the most hires during the spring, in line with the record home buying.

Data source: LinkedIn (2021). 

California, Texas, and Florida have the most job openings and are hiring the most workers

California, Texas, Florida, New York, and Pennsylvania had the most job openings and made the most hires in September -- no surprise, given that these are the five most populous states and have among the largest economic output. 

California had over 1.1 million job openings in September along with 660,000 hires. There were 807,000 job openings in Texas that month and 613,000 hires. 

By comparison, states with smaller populations and less economic output had a fraction of those numbers. Wyoming, the least populous state, had just 19,000 openings and 14,000 hires in September. 

Data source: Bureau of Labor Statistics (2021, preliminary data).

COVID-19 vaccination requirements on job postings are skyrocketing, but still appear on less than 1% of job ads

Requirements for Covid-19 vaccination are becoming more commonplace in job postings, but were on less than 1% of Indeed job ads in July 2021.

Still, vaccine requirements on software development job postings were up over 12,500% between February and July. Job ads for marketing roles that required vaccination against COVID-19 were up 11,000% over that period. 

Searches for jobs that do not require vaccination are also on the rise, according to Indeed. Those searches are mainly in healthcare but make up a minuscule percentage of all searches. 

Data source: Indeed (2021).

The fastest-growing industries

The COVID-19 pandemic has shaped the job market over the past two years, with industries most disrupted by the pandemic economy seeing explosive demand for workers. Reskilling and upskilling give job seekers even more power.

And while job hires have been at record highs for most of the past year, there are still some six million jobs left unfilled. 

This dynamic has befuddled employers that are struggling to coax prospects with newfound bargaining power to return to their pre-pandemic jobs in certain industries, like food service, hospitality, and retail. Those industries are still the fastest-growing, offering the most jobs and seeing the most hires. 

How long the gap between job openings and hires lasts remains to be seen. What is clear is that most industries are desperate for workers -- and workers know it. Now isn’t a bad time to be looking for a job. 

Outside experts weigh in

Charley Ballard, Professor in the Department of Economics at Michigan State University

At a time of historic job departures, we’re also seeing a historic number of job openings. Yet, over time, the gap between openings and hires has persisted, rather than declined. What factors are contributing to this gap, and how long do you expect this dynamic to persist?

My sense is that a lot of workers were discontented with their working arrangements before COVID, but they were muddling along. When COVID shocked the system dramatically, it appears to have caused millions of workers to make a once-in-a-lifetime re-evaluation of their connection to work. They asked questions about pay and benefits, as well as about when, where, and how they work. And so, with help-wanted signs all over the place, many of these workers have quit their jobs voluntarily, in the hope of finding something with better pay, better working conditions, or both.

Additionally, some workers have retired. This is one part of the story that I think has not been reported very much, but I think it is a big part of it. Before COVID, millions of workers were not yet ready to retire, but they were getting to the age when they might retire. Those were mostly people in their late 50s or early 60s, which means that they are right in the middle of the Baby Boom. Because the Baby Boom cohorts are so large, we would have had a lot of retirements in the last two years, even without COVID. The estimate is that COVID has caused more than two million workers to retire earlier than they would have done otherwise. By definition, those are the most experienced workers, and they aren’t coming back. That has put a real hole in the labor force, and it will take time to fill it.

The Bureau of Labor Statistics’ monthly jobs report combines one survey of employers and one of households, which has recently resulted in quite mixed messages about the labor market. Which numbers in these reports do you think serve as a better indicator of how the economy is actually performing?

Both surveys are useful, and it’s good that we have both. Although they occasionally give conflicting signals in a given month, I have found that they usually provide us with a similar picture. Having said that, however, I pay more attention to the employer survey. The household survey is used to calculate the unemployment rate, which is often misunderstood. The unemployment rate can change because of a change in the number of people who are employed or because of a change in the number of people who are in the labor force.

With continued concerns over new COVID-19 variants, do you think we’ll start to see more and more job postings with vaccination requirements? Which industries do you think will be most impacted by this?

Yes, I expect to see more vaccine requirements. It is a little early to be sure of how the omicron variant will affect things, but the early evidence suggests that it is more highly contagious than other variants. That means that we are likely to see a lot of cases in the coming months. Those who are vaccinated are much less likely to suffer a serious illness. Thus, my advice to employers is to do everything they can to make sure that their employees are vaccinated, for two reasons. First, it makes good business sense. If your employees miss work due to serious illness or death, that’s bad for your bottom line. Second, a good employer cares about the health and welfare of their employees as human beings, quite apart from the effect on the company.

The industries that are most likely to be affected are the same ones as before -- those in which workers have to be physically present at some stage of the production process. This includes restaurants, bars, and hotels, as well as manufacturers.

Ian Willamson, Dean of the Paul Merage School of Business at University of California, Irvine

At a time of historic job departures, we’re also seeing a historic number of job openings. Yet, over time, the gap between openings and hires has persisted, rather than declined. What factors are contributing to this gap, and how long do you expect this dynamic to persist?

While job openings are very high, overall employment in the USA is below pre-pandemic levels. There are several factors which are likely responsible for this gap. First, COVID-19 continues to have a major impact on workforce participation. Recovery from and complications associated with COVID-19 infections, concerns about becoming infected in the workplace, and challenges associated with childcare and/or elder care continue to keep many individuals from participating in the workforce. In addition, there is evidence that in response to the COVID-19 pandemic many older workers have opted to retire.

A second factor is a mismatch between the types of jobs available and the skills and preferences of employees. In several industries, such as health care, information technology, and infrastructure, there are not enough skilled workers to meet current or future talent needs. 

There are also mismatches between workers’ preferences and the types of work environments provided by employers. There is strong evidence that a large percentage of workers desire high levels of flexibility in their jobs, such as the ability to work remotely. The companies that are innovative and proactive in adjusting their work environments to accommodate employees’ preferences are likely to be more competitive in attracting talent.

Allen Huffcutt & Dylan Polkinghorne, Cofrin School of Business at University of Wisconsin, Green Bay 

What are the economic impacts of such a large gap between openings and hires?

Companies who strategically adapt are in a better position to survive and possibly thrive. A great illustration of such adaptation is when companies hold job fairs where they do drug testing on the spot, forgo background checks (at least temporarily), reduce or eliminate experience requirements, and/or offer a signing bonus. Like car salespeople, their goal is to motivate people to commit right then and there. Signing bonuses and higher wages have also become common, even in nonprofessional sectors (e.g., fast food). To cope, a number of companies have reduced hours of operation and/or services (e.g., closed select days, drive-through only).

On the worker side, declining birth rates have come with changes in attitudes towards work. The Silent Generation, and to a large degree their baby boomer children, accepted work as a given and took what they got regardless of whether it was interesting and/or meaningful. Subsequent generations progressively want more (or less) from work and are not afraid to fight for it, including better work-life balance, better wages, flexible hours, remote options, and even sponsored child care.

The so-called "Great Resignation," exemplified by 4.3 million people quitting their jobs in August, illustrates that modern workers are not afraid to stand up for what they want and switch jobs if necessary. The revival of worker strikes over the past year or two (e.g., Kellogg, John Deere, Nabisco) also highlights that workers now have a feeling of empowerment to a degree that they most likely have never felt before.

With continued concerns over new COVID-19 variants, do you think we’ll start to see more and more job postings with vaccination requirements? Which industries do you think will be most impacted by this?

All business operations with direct (in-person) customer contact are at the focal point of the vaccination requirement issue, including hospitality, general retail, food service, retail and professional sales, and of course health care. Yet, these same sectors are often the ones that are the most short-handed. Thus, mandates often come at a price. For instance, a state health care worker could quite easily switch to a private group with less stringent requirements, and probably get a sizable bonus in the process. It is our view that incentives rather than mandates might be the better approach in the long run, at least in some sectors. Imagine offering employees a $500 or even $1,000 bonus for being vaccinated! Although more costly upfront, the long-term benefits could be substantial including enhanced employee retention and satisfaction.

Sources

• Bureau of Labor Statistics (2021). "Job Openings and Labor Turnover Surveys."
• Indeed (2021). "Indeed Job Postings Tracker: Data Through September 24."
• Indeed (2021). "Job Postings Requiring Vaccination Climb."
• Indeed (2021). "Job Postings Requiring Vaccination Soar."
• LinkedIn (2021). "EG Insights Report."

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