By Skyler Gamm, Senior Director, Organizational Strategy & Design, Felix
Let’s be honest: traditional, reactive hiring strategies aren’t effective.
The days of posting a job, sorting through resumes, and hoping the right candidate shows up are over. Companies that take this approach find themselves stuck in a cycle of reactive hiring, scrambling to fill roles as talent shortages grow, wages rise, and employees demand more flexibility.
If you’re hiring without real-time labor market insights, you’re making decisions in the dark.
Leading companies are flipping the script. They’re actively analyzing labor markets to anticipate hiring trends, understand where the best talent is located, and—most importantly—make workforce decisions before they become urgent.
What’s Really Happening in the Labor Market?
Let’s look at what’s shaping the talent landscape right now:
Labor markets, often a casualty of trade disruptions, must be at the center of analysis and organization planning.
The labor market has remained resilient, but will it last? Some economists are concerned that this is a ‘calm before the storm’ in the labor market. Depending on the timing and severity of trade policy changes, labor markets could experience volatility, trailing the volatile equities market.
Unemployment rates are low, but skills gaps are growing. Employers can’t find the right talent, even though plenty of jobs are open. Gone are the days of relying on the unemployed workforce to fill roles. Why? Because skill sets aren’t evolving fast enough to match industry needs.
Geography matters more than ever. Some markets are talent goldmines, while others are challenging. Understanding where to recruit—or whether to shift to remote roles—can mean the difference between struggling to hire and building a competitive workforce.
Compensation expectations are shifting. If you’re not benchmarking salaries against real-time data, you’re either overpaying or underbidding—and losing great candidates in the process.
Candidates have the power. Employees are choosing companies that align with their values, offer flexibility, and invest in their development. If your hiring strategy isn’t keeping up, you’re losing top talent to companies that are.
How Labor Market Analysis Gives You an Edge
So, what can you actually do with labor market data?
Hire Smarter, Not Harder
Stop guessing. Labor market insights show you where talent is available, what they expect in terms of pay and benefits, and how competitive your job postings really are, and how you can adjust your hiring strategies to meet workforce expectations.
Make Strategic Workforce Decisions
Instead of scrambling to fill roles, you can predict hiring needs based on economic trends, industry shifts, and workforce demographics.
Target the Right Talent, in the Right Places
Should you open a new site in a certain city? Expand hiring efforts to a new talent pool? Address uncertainty in the labor market. Labor market grading helps you answer these questions with confidence.
Stay Ahead of Your Competitors
If you’re hiring without data, your competitors are winning. Understanding the competitive landscape gives you a first-mover advantage.
It’s Time to Rethink Talent Strategy
Hiring strategies should be based on market intelligence, not guesswork. Companies that integrate real-time labor data into their talent strategy are:
- More competitive in hiring top talent
- Proactively addressing skills shortages
- Reducing turnover by aligning roles with employee expectations
- Making workforce-centric strategy decisions
At Felix, we help companies shift from reactive hiring to strategic workforce planning—using market insights that drive better business outcomes.
Ready to build a smarter hiring strategy? Let’s talk about how labor market analysis can transform your approach.
