It’s unclear how looming economic uncertainty will impact the labor market. While the U.S. has recouped all jobs lost during the pandemic, many industries are still navigating labor shortages. At the same time, more than 39,000 tech industry employees have been laid off this year.
At Amplitude, we have unparalleled visibility into digital product usage, and that gives us a pulse on the labor market. We analyzed how nearly 40 digital HR products are being used – job search platforms, people management software, payroll and benefits applications, and more. The findings tell an interesting story about how companies and employees are navigating the current job market.
HR products outgrow the rest
Over the last 11 months, the use of digital HR platforms grew 91% — the highest of any industry or product type in our analysis. And some products are growing even faster. For instance, Gusto, a payroll, benefits, and HR platform, had even higher growth.
This rapid growth reflects organizations’ dynamic people strategies. Whether you are a company looking to expand your team, reduce your workforce, or retain your top talent, digital tools play a huge role in your ability to address those challenges.
The labor market is still strong
We’ve all heard about The Great Resignation. More than 47 million Americans quit their jobs last year. While this made employee retention a huge challenge, HR tools benefitted from the reshuffling. After seeing limited growth in Q4 2021, we saw monthly active users of HR products jump up 42% in January 2022.
This trend accelerated throughout the first half of this year. We saw huge spikes in HR product use, with April, May, and June seeing monthly active users grow 83%, 73%, and 91%, respectively, compared to a baseline of August 2021. JobGet, a job searching platform, experienced 87% growth in monthly active users since last year.
Fear over a potential recession isn’t stopping job hoppers. It is motivating them. More than 4 million Americans quit their job in June, and a recent report found that 60% of job seekers feel more urgency to find a job before economic conditions get worse. The right HR tools can help candidates find a new job quickly, and companies find the talent they need before the labor market tightens.
Don’t lose sight of your people
Every industry is dealing with different challenges right now. Whether you’re a technology company looking to drive growth in a downturn, a medical practice dealing with staffing shortages, or a restaurant juggling employee schedules, chances are there’s a digital tool that can help you and your employees be more successful. Because one thing is clear: a company is only as good as the team behind it.
Stay tuned for our full 2022 Product Report launching later this year. We’ll be sharing an updated look at HR industry growth, as well as in-depth insights about the trends shaping digital activity in every industry.