Advice Analytics - Octubre 2023

LABOR MARKET MONITOR

Global outlook

In October 2023, job opportunities showed a slight growth of 1.4% compared to September.

With this record, labor demand completed 6 months of stability, but remains at a lower level than in 2022.

Considering the 10 months elapsed of 2023, a difference of -15.6% with respect to 2022 is accumulated, which translates into around 10,000 job opportunities that have ceased to be generated with respect to last year. The year-on-year gap widened in recent months and was -21.7% in October.

On the other hand, it should be considered that the year-on-year comparison is still conditioned by the high records that demand was having at this point last year. In this year's perspective, the stability we have been observing is maintained.

Special focus of the month: the demand for young workers

With the aim of providing insights into the structural problems of youth unemployment, we offer an analysis of the demand for workers under 30 years of age.

Youth unemployment rates are reflected in the demand for workers: barely 1 in 6 job opportunities went to people under 30 in the study period (16.8%).

Labor demand targeting young people under 30 has seen growth between 2019 and 2023, mostly explained by the 25-29 year old segment. However, significant labor market entry challenges remain for the youngest.

On the one hand, 7 out of 10 job opportunities in labor market entry positions demand some degree of experience. This is an indicator that has grown since 2019, and 65.3% of cases demand between 1 and 2 years of experience.

On the other hand, the demand for complementary competencies (soft skills, technological tools and languages) in positions of entry to the labor market has grown, which puts pressure on the gap of skills that young people must supply to be at the height of what employers demand.

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