Magnit’s Spring Labor Market Report Summary
According to the recently released “Spring 2023 US Labor Market Report” by Magnit, a provider of VMS and MSP, there has been a rise in the layoff rates for contingent workers from 6.9% to 8.3% over the past six months. However, this rate appears to be trending downward after reaching a four-year high in the fourth quarter.
On the other hand, the voluntary termination rate has decreased to an all-time low of just 12.6% in the first quarter, which is less than half of what it was during the Great Resignation (29.1%). The report also examines tech hiring, wage growth, and other relevant issues.
The report cites several key takeaways from Magnit, including the fact that despite recent tech-sector layoffs, there is an increasing demand for tech roles across various industries, as organizations rely more on IT and technology. In the first quarter, hiring for tech roles as a percentage of total hires saw the largest quarter-over-quarter increase at 34%, for both contingent and non-contingent workers.
Over the past 12 months, year-over-year wage growth averaged 3.5%, while inflation averaged 7.5% for all workers. Magnit’s report utilizes proprietary algorithms to aggregate, cleanse, anonymize, and analyze data from various internal and external sources, including hundreds of client programs. The company manages data on hundreds of thousands of workers across over 51,000 unique roles.