Understanding the Impacts of Economic Change on the Workforce

The global economy faces unprecedented change and challenges as they try to fill open jobs and retain workers. Though job openings steadily increase, workers are not reentering the workforce at pre-pandemic rates. Many are choosing to retire early, stay home to care for their families, or need to remain out of the workforce for their health. Those who remain available to work are stimulating a change in company priorities, how they hire new workers, and what incentives they can provide to attract talent back into the workforce and keep them there.

The Economy’s Impact on the Workforce

With the rise of new technologies and the restructuring that many companies had to do to survive the pandemic and lockdown, many businesses are running a much leaner workforce than they were five years ago. As the focus has shifted to quality instead of quantity, the labor force’s demands have also shifted. Today, managers are looking for educated and skilled workers with the ability and ambition to broaden their skill set and continuously upgrade and adapt to change.

For workers, the wealth of available job opportunities has made them selective. Workers are more concerned with employment that matters in a workplace where they feel heard and accepted. Soft skills, mental health, and general well-being have become paramount, and many employers are shifting focus to improve and emphasize these aspects of the company as they pursue talent.

Adapting to an Evolving Workforce

For managers today, these new realities have added pressure and complexity to their roles. Managing employees and evaluating performance is still important, but managers must be poised to be teachers and coaches, operating with empathy and purpose.

Purposeful work is important to employees in this evolving labor force. Job seekers are looking for opportunities to make a difference and impact the world through their work. To attract and retain employees, companies must make themselves more attractive by building their brand, honing their mission and message, and effectively communicating it to the public. Current employees may be the best way to accomplish this through their positive contributions to the company website and social media, as well as through community events and interactions.

As more smart machines become part of our workforce, digital dexterity and upskilling become more important criteria for hiring and retaining employees. You can encourage this productive workforce and attract candidates eager to contribute by promoting continuous learning opportunities across your organization.


The effects of the pandemic are far-reaching, including the new work patterns that have become the norm. The workplace is becoming more innovative, flexible, and socially aware, requiring new strategies for getting work done and attracting top-quality talent. Successful businesses must focus on attracting talent with purposeful work, positive company culture, and incentives that enrich and educate them to grow and thrive as the labor force continues to evolve.

Looking for top talent to expand your workforce? Contact Career Foundations today!