Magnit Labor Market Findings: Businesses Prioritize Revenue-Generating Roles in the Face of Continued Economic Pressures

The Summer/Fall 2024 U.S. Labor Market Report reveals trends impacting the contingent workforce and wider U.S. economy

Folsom, CA – August 13, 2024 - Magnit™, an Integrated Workforce Management (IWM) platform provider, discovered that amidst rapid digital transformation, a surge in demand for professionals skilled in enterprise architecture (+9% YoY) and compliance/controls frameworks (+11% YoY) has outpaced supply, while hiring for marketing/business development (+36%) and sales analysts (+25%) are up significantly. The new data, released today in Magnit’s “Summer/Fall 2024 U.S. Labor Market Report,” is an early indicator for larger economic implications, further highlighting how talent shortages and skill deserts are impacting businesses' ability to drive revenue.

The “Summer/Fall 2024 U.S. Labor Market Report” offers a comprehensive look at contingent work in the United States. The report analyzes data from hundreds of thousands of workers across 51,000-plus unique roles globally to uncover trends affecting recruitment, retention, and staffing efforts. The contingent workforce is a barometer for the larger U.S. labor market, highlighting skill shortages facing the broader economy, as well as behaviors of workers and employers.

The report found that while overall contingent hiring volume is down year-over-year, there is a major focus on building out revenue-generating roles such as marketing and sales. Magnit discovered a 56% increase in hiring for marketing/business dev roles in 2024 compared to the same period in 2022. As inflation cools and spurs a possible rate cut this year, cost of capital will decrease from current highs. By investing in sales and marketing roles that focus on data analysis, organizations will benefit from more capital coming into the workforce.

“Organizations are strategically adjusting hiring efforts to better meet the specific needs of current business challenges,” said Dustin Burgess, Senior Vice President of Strategic Advisory at Magnit. “Our data shows that skills-based hiring is a key growth strategy for businesses as they look to achieve their corporate goals amidst a challenging economic environment. Difficulties sourcing talent can vary by region or skill set, and leveraging technology to anticipate hiring and skills trends across regions will enable organizations to position themselves for success.”

Additional findings from Magnit’s “Summer/Fall 2024 U.S. Labor Market Report” include:

● Skill Availability Varies Regionally: When competing for scarce talent, matching specific skills to roles is critical, as sourcing difficulties vary significantly by region and skill set. Looking at various skills trends through the lens of volume, pay rate and time to fill perspectives on a nationwide level, Magnit identified nursing specialties (conscious sedation, phlebotomy, post-surgical care and rehabilitation) are hardest to source due to the tightening nursing workforce. Compliance and controls frameworks (NIST, SOC1, SOC2, ISO27999, Infrastructure Security) are also increasing in demand (+11% YoY). Finally, enterprise architecture skills, including AWS, private cloud deployment, and Kubernetes, have become significantly harder to source (+9% YoY).

● The Evolution of AI Requires a Nuanced, Strategic Approach: Magnit’s research indicates that job titles related to sales training analysts, business analysts, pharmaceutical sales representatives, financial analysts and HR administration clerks are most likely to be impacted by AI. Moreover, a new Magnit survey indicates key workforce segments – including Generation Z and women – have concerns about AI usage, making it imperative that companies prioritize AI-related communication, privacy safeguards, and education and training.

● “Blind” Sourcing Channels Are Driving Up Costs and Compounding Risk Exposure: Companies’ use of project work (independent contractors, SOW, etc.) increased 16.8% as a portion of total contingent workforce spend in Q2 2024 versus three years ago. A lack of visibility into these areas has increased rogue spend and misclassification risk for many organizations, resulting in higher bill rates and operational inefficiencies.

To learn more about the latest U.S. labor market trends, download the full report.

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About Magnit

Magnit™ is a global leader and pioneer in contingent workforce management. Our industry-leading Integrated Workforce Management (IWM) Platform is supported by 30+ years of innovation, modern software, proven expertise, and world-class data and intelligence. It enables companies to optimize talent and diversity goals while achieving operational and financial success. With Magnit, companies can adapt quickly to the evolution of work to grow their extended workforce with greater agility, transparency, and speed. magnitglobal.com

“Magnit'' is a trademark or registered trademark of Magnit, LLC. Any trade, product, or service name referenced in this document using the name “Magnit'' is a trademark and/or property of Magnit, LLC. 

Methodology
This report has been developed by Magnit Strategic Advisory, which is comprised of 100+ MBAs, PhDs,CPAs and Consulting Business Analysts. The Strategic Advisory team analyses program data and provides actionable cost saving, efficiency and process improvement strategies for Global 2000 clients.

Magnit applies proprietary algorithms to aggregate, cleanse and anonymize data across a variety of internal and external data sources, including hundreds of client programs globally, to create a cross-client data repository unmatched in the market. Magnit manages data on hundreds of thousands of workers annually across 51,000-plus unique roles globally, providing insights on rates, skills premiums, efficiencies, candidate supply/demand, hiring competition, etc. The volume of data ensures normalization without risk of skewed data.

The compensation data is backed by Magnit’s global job taxonomy across 160-plus countries and input from 1,000-plus “Skills Village” compensation experts around the world. The intelligence provided empowers in-depth understanding of the competitive environment, talent pools, legal and regulatory impacts, workplace dynamics, and social/political factors as they relate to the global labor market.

Contact
Isabella Shaw, Account Supervisor
PAN Communications
Magnit@pancomm.com