Something to look forward to: It's been a tough slog for white-collar professionals in the job market over the last few years. However, it appears that this environment is beginning to shift as companies grow more confident about the economy.
The past few years have been particularly challenging for white-collar professionals. Despite initial prosperity during the early stages of the pandemic, the industry has faced considerable upheaval. A staggering one in four U.S. workers who lost their jobs last year were white-collar professionals, potentially indicating strain from high interest rates and the impact of technological advancements.
Another telling statistic comes from S&P Global, which reports that professional and business services jobs accounted for more than 3.7 million of the nearly 14.9 million layoffs and discharges in the U.S. through the first nine months of 2024.
The hunt for jobs has been no less painful. Another survey by the American Staffing Association and The Harris Poll found that 40 percent of applicants failed to secure even a single interview throughout 2024. This frustrating job search experience, coupled with a reduction in benefits and flexibility, has led to a phenomenon Gallup refers to as the "Great Detachment," characterized by feelings of stagnation and disengagement among white-collar workers.
Now, though, new trends suggest that this landscape may be on the cusp of significant change.
"I don't think that the plight of the high end, mid-level professional is ever going to go away, but we do see green shoots on the horizon," Mike DiStefano, who leads professional search and interim placements at Korn Ferry, told Fortune, adding that "change is afoot on the job market."
DiStefano reports an uptick in search activity across various functions and industries over the past couple of months, humorously noting that he's "seen more activity in the past 30 days than the past 30 months."
Several factors are contributing to this potential shift, including pent-up demand following anxiety about an official recession, gradual reduction of interest rates, a high-performing stock market, and anticipated changes in federal investment with a new administration. While it's too early to predict the full impact of these factors, they collectively suggest a more optimistic outlook for white-collar professionals.
However, as the job market evolves, white-collar workers must adapt to remain competitive, DiStefano advises. "Korn Ferry's recommendation to anybody, regardless of where they are in their career, is, you've always got to be one step ahead." This involves making sure skills align with emerging job demands and staying current in one's field.
Skills that are particularly sought after for white-collar positions include AI and big data proficiency, networks, cybersecurity, and technological literacy in general. Analytical thinking is the most sought-after soft skill among employers, with 70 percent of companies considering it essential.
For middle-aged adults in the white-collar workforce, DiStefano suggests focusing on networking, maintaining contingency plans, and continuously updating skills. He emphasizes that the current market demands specialists rather than generalists.
While the immediate future may not bring a massive surge in demand for mid-level professional talent, DiStefano anticipates "a steady stream of turnover and new additions driven by prolonged postponements and pent-up growth initiatives slowly being implemented."
Tech disruption hit white-collar jobs hard, but new opportunities are emerging
