Labor Market Trends for 2023

For more than 20 years, employers and professionals have relied on the Robert Walters Salary Survey to help them make critical decisions for their businesses and careers. Here is a summary of the latest survey results.

Main Trends:

Professionals:

• What employees value the most are: career plans, wellness strategies and compensation. 

• 67 percent of employees are expecting a pay rise in 2023 versus 40 percent in 2022. 

• 60 percent desire to change their jobs within the next three to six months. 

• 65 percent of professionals feel optimistic about the labor market. 

Organizations:

• 50 percent of companies are considering pay rises in 2023. 

• 45 percent of organizations are looking for a 100 percent remote team.

• The main strategies to boost diversity inside the companies are hybrid, training and diversity and inclusion committees. 

Concerns over the rising cost of living and recession will see professionals more likely to request, and expect their employers to consider, a pay increment for 2023. Companies continue to face a shortage of talent, especially among managerial and senior-level positions, and they are likely to double up efforts in staff retention initiatives.

As inflation and a possible recession impact economies globally, 71 percent of employees expect their employers to consider the rising cost of living when evaluating pay rises or bonuses over the next 12 months.  Yet, some are unlikely or unsure to get to the negotiation table in 2023, with top reasons cited being: not wanting to jeopardize job security (26 percent), not knowing how to negotiate (18 percent), and that the company was heavily impacted by the political and economic situation (14 percent), the survey showed. 

The top challenges when sourcing for staff include:

• Salary and benefit expectations perceived to be too high 

• Lack of applications 

• Lack of industry experience 

As companies have sought alternatives to augment their talent pool and solve skill gaps, 45 percent of employers said they have considered a fully remote/location independent workforce.
 
Additionally, companies are doing their part to support their staff despite the uncertain times, with 82 percent of employers more likely to give pay rises in recognition of inflationary pressures, and 72 percent likely to issue bonuses in 2023. 

What will be the top hiring trends for 2023?

• Concern about the recession

• Inflation

• Outsourcing reform

• Work and family reconciliation

• Silent resignation

• Adoption of ESG and diversity and inclusion strategies

Trends Per Area

Marketing:

Profiles focused on growth, martech and e-commerce will continue to be relevant and business development profiles will remain in demand.

Activation of face-to-face and hybrid events — brands and institutions are waiting to connect again with their audiences, so face-to-face events will set the tone to resume the daily routine to which we were accustomed. 

Growth in consumption of Generation Z — The performance and growth of this new potential market is digital. Some authors define this generation as not very patient, highly critical and accustomed to the immediacy of the internet. The behavior patterns of Generation Z will have an impact on consumer trends and government processes, among many other areas that will have to redefine the way they approach younger adults.

Artificial Intelligence — Algorithms and automated decision-making. Creating a good growth model and identifying the right metrics will be key. In addition, this reduces friction between the user and the internet, facilitating communication and experience. 

Metaverse — This is one of the most notorious technological trends. The metaverse is nothing new. However, the merger of this technology with Web 3.0 will change the way we do things and how we interoperate economically. In addition, it will boost the creative economy through NFTs.

Technology 

The pandemic has changed the paradigm of the skills most sought after by companies in the technology sector. In the old days, the most required factor was that the candidate had technical knowledge in technologies used by the company. 

Currently, what companies are looking for the most is that the ideal profile is adaptable to change. How does this professional move in an environment of constant change?

A candidate’s ability to handle agile methodologies, such as Scrum, cloud and teamwork and above all, to be able to develop in a completely remote environment are priorities. 

Some other aspects that are impacting IT recruitment are: Recruitment of foreign companies in Mexico, integration of new digital technologies and AI, 5G network, data profiles and profiles specialized in cryptocurrencies and blockchain.

Engineering

In engineering, the logistics, construction and automotive sectors have been impacted. In logistics, derived from the increase in e-commerce, delivery and last-mile deliveries, operational managers have continued to be in demand to develop strategies to reduce delivery times. 

Regarding the construction sector, inflation has generated a rise in the cost of materials, slowing down the expected growth.

The automotive sector shows a slow recovery in the supply of semiconductors. However, Mexico continues to position itself as a desirable destination for the construction of plants where positions focused on production and quality remain in high demand. 

The main trends for 2023, will be nearshore-offshore, electric and hybrid vehicles, operating efficiency, sustainability and new delivery models.

Finance

Organizations are searching for more business-oriented profiles and transactional tasks are being outsourced while the most strategic tasks are being left in-house. 

The use of data and analytics remains critical to achieving synergies with business functions and shaping the workforce of the future. 

Business leaders continue to assign their finance function the task of coming up with contingency plans – evaluating critical factors, such as the ability to stay open, the financial viability of remote work, and headcounts. Professionals need to continue strengthening their digital skills, using new platforms, new forms of management and flexible models. 

Fintechs are transforming the financial world, and thanks to their innovation and disruption they have managed to consolidate themselves among users. Their growth will be constant. It is important to identify and communicate the value proposition in order to attract and retain the best talent. One of the most important challenges for the industry is the flight of talent and attraction. With greater demand for national and international profiles and competitors, fintech companies need to evolve their value proposition to remain competitive and avoid the loss of key talent.

New profiles — Experts in disciplines like big data, blockchain, user experience or artificial intelligence are some of the most coveted profiles.

Healthcare

The demand for talent in the pharmaceutical industry has been constantly evolving. The pharmaceutical industry is a strategic economic activity in the country, since it is the seventh-most important manufacturing activity. In addition, it is related to more than 160 different items using different types of inputs for the manufacture of medicines and treatments. 

Among the main trends for the labor market are: focus on research and development, biotechnology, animal health and medical tech.

Most Demanded Roles