In anticipation of an economic crisis, employers are cutting back on remote work options, according to LinkedIn’s October 2022 Global Talent Trends report.
According to data from LinkedIn, the percentage of job postings with remote work options has dropped from 20% of all postings in February to 14% in September.
These changes are occurring as recruitment slows down after reaching record-high growth in 2021. Compared to the same month last year, hiring in the U.S. dropped 13% in September 2022. The changes come after employers such as Amazon, Apple and Google increased their demands that employees return to the office, leading to a split in their workforces.
“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,” LinkedIn chief economist Karin Kimbrough said in the report.
“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,” she added.
According to an August 2022 LinkedIn survey, candidates cited flexibility as the third most important priority, after compensation and balance. Based on the number of applicants for remote jobs, the data also shows that the U.S. leads the global trend toward remote work, followed by the U.K., Germany and India.
Jennifer Shapley, LinkedIn’s vice president of global talent acquisition, predicted that flexibility in employment will remain a top priority for applicants despite a decline in the number of remote jobs
“Even facing an uncertain future, people still highly value two areas of work life that have gotten a lot of attention since the start of the pandemic: work-life balance, and flexible-work arrangements – including remote work. I expect those two attributes to remain top talent drivers for years to come,” Shapley said in the report.
Despite declining availability, demand for flexible work arrangements is on the rise, according to the study. According to LinkedIn’s data, remote work job postings accounted for 50% of all applicants in February, the peak month. In September, when availability declined, that number rose to 52%.