The Evolving Labor Market: Key Trends and Shifts in 2024

The world of work has undergone radical changes in recent years, driven by digital disruption, the pandemic, and evolving business priorities. These factors collectively shape the current diagnostic picture of the labor market. The trends highlighted in the Deel Global Hiring Report 2024 provide an in-depth look at how employment patterns are redefining globally. Drawing on data from more than one million contracts and 35,000 companies across more than 150 countries, the report underscores four key shifts shaping the labor market in 2024: the growing demand for Generation Z, the resurgence of local hiring, the unexpected relevance of accountants, and declining layoff rates.

Generation Z: The New Face of the Workforce

The young people of Generation Z, born between 1997 and 2012, have become the most sought-after segment by companies. The report notes that the hiring of this generation increased by 97% in 2024. This trend challenges traditional stereotypes that often cast Gen Z as fickle or unadaptable. Employers are recognizing their strong affinity for technology, particularly in the use of artificial intelligence (AI), and their focus on continuous learning and personalization of their careers.

“According to the report, the hiring of this generation increased by 97% in 2024. Despite stereotypes that brand them as fickle or not very adaptable, employers have identified in them a strong affinity for technology, especially in the use of artificial intelligence (AI), as well as a strong focus on continuous learning and personalization of their careers.”

Gen Z also recorded the highest salary increase, with a 9% rise, surpassing Millennials and Generation X. They also had the lowest rate of involuntary layoffs, with only 36% of contracts terminated. This suggests that employers are investing in their long-term development and retention, recognizing them as a valuable addition to the workforce.

For example, tech giants like Google and Microsoft, realized that Gen Z workers could contribute to analyzing the large datasets of data to understand their customers more fragmented and in much larger datasets than any other generations before. This marked the beginning of incorporating Gen Z workers’ unique technological capabilities into the company’s strategic plans.

Back to Local: A Shift in Hiring Patterns

While globalization continues to be a key factor in the labor market, 2024 has seen a notable shift towards local hiring. The report indicates that hiring within the same country grew by 104%, compared to a 42% increase in international hiring. This trend could be influenced by the partial return to physical offices and the need for synchronized work teams on similar schedules.

In Europe, 50% of international hires in the United Kingdom were within the same time zone, while in Germany, 41% of workers hired lived within an hour of each other. Nevertheless, 82% of the workers hired via Deel are still remote, confirming that flexibility remains a crucial factor in today’s work dynamics. This trend is echoed in the U.S., where companies like IBM and Apple have started to prioritize local hiring to streamline operations and reduce logistical challenges.

The resurgence of local hiring is not only about logistics; it’s also about fostering a sense of community and belonging. Local employees often have a deeper understanding of the community, local advantages and preferences. This can be especially beneficial for companies looking to build stronger, more inclusive work cultures. A recent study by the University of Michigan found that companies with a strong sense of community reported higher employee satisfaction and lower turnover rates.

The Rising Demand for Accountants

Surprisingly, accountants have become one of the most in-demand profiles globally, even surpassing software engineers. In 2024, the hiring of accountants grew by 74%, and their salaries increased by 15%, compared to 8% for software engineers. This trend is driven by the growing financial complexity of companies, especially those with international operations, leading to a shortage of talent in this sector.

“… accountants have become one of the most in-demand profiles globally, surpassing even software engineers. In 2024, the hiring of accountants grew by 74%, and their salaries increased by 15%, compared to 8% for software engineers.”

The countries that hired the most accountants were the U.S., Australia, and the UK, while the Philippines, the U.S., and Argentina stood out as the main exporters of this talent.

Fewer Layoffs and Higher Employee Retention

One of the most notable changes in 2024 has been the decline in layoff rates. Following a peak in 2023, involuntary terminations fell by 16% in November 2024 compared to January 2024.
In the United States, the termination rate that reached 72% in May 2023 fell sharply over the following year, signaling a shift towards greater job stability.

Additionally, fewer people are voluntarily resigning. The number of workers leaving their jobs by choice dropped from 3% in January 2023 to 2% in December 2024. This phenomenon could be due to economic uncertainty and stabilizing wage increases, which has reduced the motivation to change jobs. Companies are finding that investing in employee retention yields better long-term results than constant recruiting and onboarding.

The global labor market is undergoing a significant transition, with a mix of continuity and change. Generation Z continues to establish itself as the most attractive segment for companies, while local hiring is gaining ground over international. Accounting has emerged as one of the most valuable professions in the global economy, and companies are choosing to retain their employees rather than resorting to mass layoffs. Addressing challenges like remote work integration and cost cutting opportunities are increasingly becoming a core focus of the American workforce.