What LinkedIn Head Economist APAC, Pei Ying Chua says:

This year, we are seeing a slower pace of growth across major economies in the Asia Pacific (APAC) region – namely Australia, India, New Zealand and Singapore – as hiring activity begins to ease off the back of the post-pandemic recovery that we saw the year before. Amidst the uncertain global economic climate, it is likely that the hiring rate will continue to decelerate from the historical highs of last year.

Regardless, the labor market in APAC remains tight, with many countries reporting low unemployment rates. As a result, in the coming year, it’s predicted that competition for talent with in-demand skills will remain fierce. In fact, LinkedIn data shows that skill sets for jobs have changed by around 25% since 2015 and is expected to reach 40% by 2025.

Pei Ying’s counsel to talent leaders:

Companies that hire for skills and cultivate a culture of internal mobility by investing in upskilling and reskilling their employees will find it easier to attract and retain top talent. In fact, our data tell us that companies that excel at internal mobility are able to retain employees for an average of 5.4 years – almost twice as long as companies that struggle with it. With a workforce equip with the most relevant and in-demand skills, companies will also be able to pivot and adapt quickly in times of uncertainty or disruption.

What LinkedIn Chief Economist Karin Kimbrough says:

What LinkedIn Chief Economist Karin Kimbrough says:

This year we are seeing a slower pace of growth, as the economy comes back down to earth after a meteoric rise last year in one of the fastest recoveries we have ever seen. 

Nevertheless, labor-market dynamics remain tight. So, in many ways, employees still hold the power to demand more from their employers when it comes to salary, flexibility, and benefits. But this power balance is likely to start leveling out in the coming months.

Amid this uncertain backdrop, we anticipate further deceleration in hiring from the historical highs seen last year.

Karin’s counsel to talent leaders:

Continue to understand the skills your employees have, and the skills your company needs. That understanding will help you weather economic highs and lows, and labor-market volatility.

Trends in workforce confidence

Many workers are bracing for an economic downturn.

What Chua Pei Ying, LinkedIn Head Economist APAC says:

The past 12 months have been an economic rollercoaster. The rapid post-pandemic recovery that we saw in late 2021 has switched to record-high inflation rates and economic slowdowns. These constant changes will inevitably leave workers uncertain of what may be coming next, resulting in low confidence in their ability to improve their financial situation.

Pei Ying's counsel to talent leaders:

Employees' uncertainty and fears about financial security can lead to undue stress and mental strain, affecting their personal lives and work performance. Transparency is key to allay such concerns, and creating channels for employees to voice their concerns or ask questions can go a long way to creating a healthy workplace environment.

LinkedIn's Talent Drivers survey also shows that apart from compensation, APAC workers have ranked career advancement and upskilling highly on their list of priorities - consider establishing programs such as leadership training or holding courses to create win-win situations for both employers and employees.

What LinkedIn Principal Economist Guy Berger says:

The last few years have been full of economic curveballs: the pandemic, an exceptionally fast recovery, supply-chain disruptions, and the highest inflation in four decades. More recently, we’ve seen a sharp slowdown in economic growth in regions across the globe, leaving many unsure of what the future may hold.
 
Employees are acutely aware of this uncertain environment, too. In the past few years, they’ve been worried about their health, their job security, and their pocketbooks. The uncertainty filters into their lives both personally and professionally.

Guy’s counsel to talent leaders:

You can’t eliminate uncertainty, but you can do your best to mitigate it for your employees. 

That may mean doing “more with less” – using scarce resources to support employee morale and confidence in a smart and targeted way. You may see more upside with increased benefits than pay – or vice versa. Consider relatively low-cost, high-value benefits that you might have overlooked before. And don’t underestimate the calm that can follow when you reassure employees that you hear them, and that tough times aren’t forever.

Trends in what candidates value

Australian candidates consider flexibility their top priority.

Trends in employee growth and transformation

Internal mobility increases employee retention in Australia.

What LinkedIn VP of Talent Development Linda Jingfang Cai says:

We know people want to learn and grow at work, regardless of economic and market conditions. This almost always translates to employees asking themselves and their managers, “How can I do a better job so that I can get paid more, promoted, or land my next dream role?” Our new data insights show us that, even with some industry and regional nuances, if companies leave those questions unanswered, in most cases, people will leave the moment they find a better opportunity elsewhere.

I often think what gets lost in conversations about providing learning and growth opportunities that will help retain employees is: What do your employees want? And this may vary depending on the job functions and demographics. Just as businesses need new skills, employees need to discover their career possibilities and change, too.

Linda’s counsel to talent leaders:

Give employees more ownership over their career paths at your company. Start the conversation with them on their possibilities for learning, growth, and – ultimately – internal career transformation on Day 1.