From the continuing pandemic to controversy involving artificial intelligence, a report by Staffing Industry Analysts Executive Director of Global Research John Nurthen, “Staffing Trends 2022,” highlights seven trends that will impact the staffing industry this year.

On a positive note, the staffing industry this year is more resilient, more automated, more efficient, more empathetic and facing more demand. And while this should be a relatively good year, here are the seven trends highlighted by SIA:

1. Covid-19 Mk III. The pandemic is likely to continue as the dominant staffing trend this year, albeit in a less aggressive and damaging form than in the past. The emergence of the omicron variant at the end of last year has created a new wave of infections and governments have put restrictions back in place.
2. The Great Resignation. The Great Resignation with an increase in quit rates has emerged amid the global pandemic. “The big question is whether current resignation rates are here for the long term or are a short-term phenomenon,” according to the report. “What we can be sure of is that employers are having to make serious investments in their workers’ wages, employee satisfaction and work-life balance.”
3. Rate Rises. Drivers of increased costs for temporary staff this year include higher rates of inflation; supply/demand issues; the cost of meeting Covid-19 employment requirements; and increases in tax, social charges and minimum wage.
4. Mediterranean Renaissance. Growth in Southern European markets such as Italy and Spain have been striking compared to the Northern European markets that have dominated the European staffing ecosystem.
5. M&A Pick-up. Mergers and acquisitions in staffing and other workforce solutions hit a new high in 2021 with 352 transactions recorded by SIA.
6. Increase in Cyber-Attacks. Data by McAfee Enterprise and FireEye suggested that during the pandemic, 81% of global organisations experienced increased cyber threats with 79% experiencing downtime due to a cyber incident. Interpol has also sounded the alarm on cyber threats. The staffing industry and other workforce solutions intermediaries are particularly exposed to such attacks.
7. Artificial Intelligence Controversy. As automation continues to grow across talent acquisition technology, the chances of another algorithm scandal increases and, perhaps one that has serious legal ramifications. Regulation is now generally considered necessary to both encourage AI and manage the associated risks. For employers, these developments will likely escalate both the risk and cost of an AI failure.

The full report is freely available here.