Talent Report 2024
EXECUTIVE SUMMARY
Greater Grand Rapids Talent Landscape:
Every thriving economy relies on the skills, insight, and strength of its workforce for sustained prosperity. Greater Grand Rapids enjoys a robust and growing population that is becoming younger, more educated, and increasingly diverse with each passing day. Compared to national and state averages, our region has a higher concentration of young people across all age groups from 0 to 34 (see page 8). Our population is also becoming more educated, experiencing a nearly 20% increase in 25- to 34-year-olds holding a bachelor’s degree or higher – more than twice the national average (see page 14). And, our community’s diverse population has increased significantly, growing to nearly 25% of the region today (up from 17% two decades ago) and projected to hit 35% by 2050 (see page 8). These demographic shifts position our people and our employers for continued economic prosperity. Like much of the country, our region has seen the intensity of the pandemic-era labor market subside, with the labor supply now exceeding pre-pandemic levels. Recently, labor demand has slowed. Job postings remain near record highs, yet actual net job growth is modest. In response, employers are placing greater emphasis on retaining their current employees and investing in training to prepare their talent for the workforce of tomorrow.
3.5% 27,463 615,596 1,105,379 $30.80
Population
Labor Force
Unemployed Population
Unemployment Rate
As you plan for your workforce needs in 2025 and beyond, use this Talent Report as a strategic resource.
Note on the Data: The Grand Rapids Metropolitan Statistical Area is used as the primary geography for this report unless otherwise noted. Retention call data from The Right Place encompasses the organization’s eight county service area (Kent, Ionia, Montcalm, Mecosta, Newaygo, Lake, Oceana, and Mason counties). The content of this report reflects the most recent national, state, and regional data available at the time of publication.
Average Hourly Wage
EXECUTIVE SUMMARY | 1
THE LABOR MARKET
Cooling But Not Cold Renewed signs of strength in the national labor market and declining national unemployment in recent months have defied many analyst expectations, leading many to shift their predictions from the possibility of an economic recession to that of an economic soft landing.
The pace of hiring in 2024 has cooled significantly across the board compared to the previous year.
Greater Grand Rapids
Michigan
United States*
250,000
14,000
3,500,000
3,000,000
12,000
200,000
10,000
2,500,000
150,000
8,000
2,000,000
6,000
1,500,000
100,000
4,000
1,000,000
50,000
2,000
500,000
0
0
0
2023 (Jan to Aug)
2024 (YTD)
2023 (Jan to Aug)
2024 (YTD)
2023 (Jan to Sept)
2024 (YTD)
*January to September based on most recent data available Source: Michigan Department of Technology, Management, and Budget
THE LABOR MARKET | 2
Employment Month to Month Change
Regionally, Greater Grand Rapids has experienced several months of declining month-over-month employment. State employment figures have also trended negatively.
4.0%
Greater Grand Rapids
U.S.
Michigan
3.0%
Greater Grand Rapids
2.0%
586,407
1.0%
AUG 2024
Jobs
0.0%
↓ ↓
0.1% from August 2023 0.9% from July 2024
-1.0%
-2.0%
-3.0%
Michigan
-4.0%
4,828,000
JAN 2023
FEB 2023
MAR 2023
APR 2023
MAY 2023
JUN 2023
JUL 2023
AUG 2023
SEP 2023
OCT 2023
NOV 2023
DEC 2023
JAN 2024
FEB 2024
MAR 2024
APR 2024
MAY 2024
JUN 2024
JUL 2024
AUG 2024
SEP 2024
AUG 2024
Jobs
Source: Michigan Department of Technology, Management, and Budget
0.9% from August 2023 0.3% from July 2024
↓ ↓
Unemployment Rate
5.0%
Greater Grand Rapids
U.S.
Michigan
While unemployment in Greater Grand Rapids has inched up in recent years, it remains below state and national numbers.
4.5%
4.0%
Greater Grand Rapids
3.2% 3.5%
3.5%
AUG 2023
AUG 2024
3.0%
0.4% percentage point increase in unemployment from January 2024
2.5%
AUG 2023
SEP 2023
OCT 2023
NOV 2023
DEC 2023
JAN 2024
FEB 2024
MAR 2024
APR 2024
MAY 2024
JUN 2024
JUL 2024
AUG 2024
SEP 2024
Source: Federal Reserve Bank of St. Louis
THE LABOR MARKET | 3
In the immediate term, job postings in Greater Grand Rapids remain on par with 2023 numbers, pointing to retained strength in the current labor market.
Talent attraction and retention remain major concerns for companies across Greater Grand Rapids, though less so than in previous years. An analysis of more than 550 retention calls conducted by The Right Place from September 2023 to September 2024 found: 24% 38% 32% 47% of companies reporting talent as a major pinch point of companies citing talent recruitment issues of companies citing talent recruitment issues of companies reporting talent as a major pinch point
GGR Unique Job Postings
160,000
140,000
120,000
100,000
80,000
60,000 40,000
20,000
0
2020
2021
2022
2023
2024
Source: Lightcast
Source: The Right Place
Signals are pointing toward companies in Greater Grand Rapids slowing the pace of hiring in the future.
Staffing Projections
70%
Increasing
Stable
60%
50%
40%
30%
20%
10%
0%
2023
Q1 2024
Q3 2024
Source: The Right Place
THE LABOR MARKET | 4
TALENT RETENTION
A Renewed Focus
Companies are refocusing their efforts on retaining employees. Nationally, human resource professionals are gearing up for this focus shift, as uncertain market dynamics, an aging workforce, and declining birth rates put pressure on the talent pool.
Percentage of HR professionals who believe maintaining employee morale and engagement is an essential priority
2023 78% 77% 2023
2024 81% 78% 2024
→ →
Percentage of HR professionals who prioritize retaining top talent
Source: SHRM, “2023-2024 State of the Workplace Report” and SHRM, “2022-2023 State of the Workplace Report”
TALENT RETENTION | 5
U.S. Aging Population
60 and older population has increased from: Populations Are Aging as the Baby Boom Generation Moves Through Retirement 14% Successfully navigating an aging workforce is key for talent retention.
19 and Under
→ →
23% 24% of total population in 2024 of total population in 2024
2004
2024
60 and Over
17% of total population in 2004 of total population in 2004
0%
5%
10%
15%
20%
25%
30%
Source: U.S. Census Bureau
Greater Grand Rapids Aging Population
At the same time
19 and under population has declined from:
30% 28% of total population in 2004 of total population in 2004
→ →
25% 24% of total population in 2024 of total population in 2024
19 and Under
2004
2024
60 and Over
0%
5%
10%
15%
20%
25%
30%
35%
Source: Lightcast
Source: U.S. Census Bureau
TALENT RETENTION | 6
County Population Projections Percent Change 2020-2050
Percent Change
Mason -6%
Lake -7%
-9%
0%
9%
Oceana -9%
Mecosta -6%
Talent experts largely agree these factors will lead to a national labor pool that is substantially smaller than in recent history.
Newaygo 4%
3%
Meanwhile, birth rates in the U.S. are also declining.
Montcalm 4%
Muskegon -1%
2% 1% decline in general fertility rate from 2022 to 2023 annually since 2014, except for 2020 when they rose
Kent 8%
Ottawa 9%
Ionia 9%
Birth rates have fallen by
Source: Centers for Disease Control and Prevention
Allegan 8%
Projections show various levels of population change for communities in and around Greater Grand Rapids.
These dynamics will make it essential for companies to revisit their talent retention strategy.
Source: University of Michigan Research Seminar in Quantitative Economics (RSQE)
TALENT RETENTION | 7
Inclusive excellence, employee well-being, and compensation are important factors in increasing talent retention. Inclusive Excellence
While the overall population may be aging, Greater Grand Rapids is growing more diverse.
Racially...
And Generationally...
17.0% 23.4% 35%
percentage of GGR’s diverse population in 2004
Workforce Distribution Comparison 2024
65+
percentage of GGR’s diverse population in 2024
55-64
45-54
predicted percentage of GGR’s diverse population in 2050
35-44
25-34
20-Year Growth of Diverse Populations in Greater Grand Rapids
22-24
Demographic
2004 to 2024
19-21
Grand Rapids
Michigan
U.S.
Two or More Races
116% 77% 60% 32% 30%
Asian
Hispanic
14-18
Black
0%
5%
10%
15%
20%
25%
Native Hawaiian or Pacific Islander
White
5%
Source: U.S. Census Bureau
American Indian or Alaskan Native
-3%
Greater Grand Rapids outpaces the state and nation in concentration of 35 year old and younger workers.
Source: Lightcast and RQSE
TALENT RETENTION | 8
Employee Well-Being
Workers Identify Top Challenges
Fostering a human-centered culture focused on empowering employees and promoting well-being is an essential element of both talent retention and attraction. According to a global survey of workers: 43% said their organizations have left them better off than where they started
Increasing work stress leading to worse mental health
53%
The threat of technology taking over jobs
28%
50% 40%
The rising number of new skills and jobs needed as a result of technology or business model changes
25%
stated they were always or often exhausted or stressed at their jobs
Percent of workers answering the question: “Which of the following developments do you worry about as it relates to your work? Select all that apply.”
Increasing risks of threats to physical safety or wellness in the workplace
24%
cited burned out
The “always on” economy enabled by digital technology
22%
Source: Deloitte. “2024 Human Capital Report”
Employers now being able to digitally monitor my work without my consent
22%
Lack of connection and belonging due to more remote or hybrid work
20%
0%
10%
20%
30%
40%
50%
60%
Source: Deloitte. “2024 Human Capital Report”
TALENT RETENTION | 9
Compensation
Hourly Wage Growth
Ensuring compensation keeps up with both the market and rising inflation is essential for retaining talent.
Aug 2023 - Aug 2024
Aug 2019 - Aug 2024
Greater Grand Rapids
73%
Michigan
U.S.
HR professionals say inflation is a top concern
Greater Grand Rapids
$30.80 27% Greater Grand Rapids Average Hourly Wage (August 2024) However, only
Michigan
U.S.
of HR executives say they factor inflation into annual pay raises
0%
5%
10%
15%
20%
25%
30%
Source: Bureau of Labor Statistics
Source: SHRM, “2023-2024 State of the Workplace Report”
Average Hourly Wages Comparison
$36.50
$34.50
Greater Grand Rapids
Michigan
U.S.
$32.50
$30.50
$28.50
$26.50
$24.50
$22.50
2019
2020
2021
2022
2023
2024
Source: Bureau of Labor Statistics
TALENT RETENTION | 10
Talent Retention and Attraction with Hello West Michigan
601 50 84 Colleges & Universities had Interns Attend Interns Attended This summer, programming included a half-day conference, intern inform newsletter, intern quick start guide to West Michigan, and a West Michigan Intern of the Summer contest. Intern Connect 2024 West Michigan Intern Connect is a summer program of events and resources for young professionals. The program is designed to inform interns on the economic opportunities and lifestyle the region has to offer, helping interns make the most of their experience.
Hello West Michigan, a strategic partner of The Right Place, promotes Greater Grand Rapids as a great place to live and work. By educating people about the region, actively attracting new relocatees, and connecting new residents with area companies, Hello West Michigan is enhancing talent retention and attraction across Greater Grand Rapids. The organization’s signature programming includes: Rapid Roots Rapid Roots is designed to help professionals new to Greater Grand Rapids assimilate into the community and build their network. Across six sessions, members of each Rapid Roots cohort will learn about the region’s economic foundations, its geography, learn the science of friend finding and strategies for personal connection, and be connected with community activities based on their interests and family needs. 89% of Rapid Roots cohort members are with the same company 1 year after completing the program
Companies Represented (past year’s representation range between 45 and 60 companies)
96% 87%
of Rapid Roots cohort members are in the region 1 year after completing the program
of Rapid Roots cohort members are in the region 2 years after completing the program
TALENT RETENTION | 11
UPSKILLING & RESKILLING
Companies in Greater Grand Rapids recognize these trends and prioritize training. This year, businesses appear to be pulling back from increasing training budgets in favor of maintaining stable training budgets.
New technology is changing workers’ skillsets, how they learn, and how frequently they retrain. 5 YEARS 9% 44% average time before skills start to become outdated of executives believe they are making progress balancing employee capabilities with innovation workers’ core skills that experts predict will change in the next five years A New Technological Landscape
Investment In Training
50%
2021 to 2022
2022 to 2023
2023 to 2024
45%
40%
35%
30%
25%
20%
15%
Sources: Harvard Business Review, “Reskilling in the Age of AI,” Deloitte, “2024 Global Human Capital Trends,” and World Economic Forum, “Future of Jobs Report 2023”
10%
5%
0%
Decreasing
Increasing
None
Stable
Source: The Right Place
UPSKILLING & RESKILLING | 12
With regional companies increasing AI job postings by over 300% in recent years,
executives are embracing AI as a way to grow their business by increasing AI-related training opportunities and preparing their workforce for future technologies.
Unique Job Postings Referencing AI
75% 39% 52%
2022 2023 2024
of organizations across the globe intend to accelerate their use of AI in the next five years, while also anticipating significant disruptions to their workers’ skillsets
78
114 342
of workers worried about the impact of AI on their job
Unique Postings
of workers believe AI will enhance their career potential
Source: Deloitte, “2024 Global Human Capital Trends”
$50.83
$56.49 $47.45
Average Wage ($/HR)
References to AI in job postings in Greater Grand Rapids have increased by 338% since 2022
Source: Lightcast
UPSKILLING & RESKILLING | 13
Greater Grand Rapids’ concentration of 25- to 34-year-olds with a bachelor’s degrees or higher is 2X the national average. Educational Attainment in Greater Grand Rapids
Since 2019
19.7% 9%
35%
2014 % of Population
2019 % of Population
2024 % of Population
Growth in the 25–34-year-old population with a bachelor’s degree or higher in Greater Grand Rapids
30%
25%
20%
15%
National average growth for 25-34 year-olds holding bachelor’s degrees or higher
10%
Source: Michigan Future, Inc.
5%
0%
Less Than 9th Grade
9th Grade to 12th Grade
High School Diploma
Some College
Associate’s Degree
Bachelor’s Degree
Graduate Degree & Higher
Source: Lightcast
Educational Attainment as Percent of Population
Graduate Degree & Higher
Bachelor’s Degree
Associate’s Degree
Some College
High School Diploma 9th Grade to 12th Grade
Grand Rapids
Michigan
U.S.
Less Than 9th Grade
0%
5%
10%
15%
20%
25%
30%
Source: Lightcast
UPSKILLING & RESKILLING | 14
Education Requirements of Job Postings
With talent attraction already a challenge, companies are shifting focus from hiring for credentials to hiring for skills. This reflects a national trend of what talent experts refer to as eliminating the “paper ceiling.”
45%
2018 to 2019
2023 to 2024
40%
28% 50%
35%
of human resource departments considering relaxing education and degree requirements to improve recruitment
30%
25%
20%
15%
increased likelihood of recruiters searching for candidates by skills rather than years of experience
10%
5%
0%
No Education Listed
High School or GED
Associate’s Degree
Bachelor’s Degree
Master’s Degree
Ph.D. or Professional Degree
Sources: SHRM, “2023-2024 SHRM State of the Workplace Report” And SHRM, “Skills-Based Hiring Requires Commitment to Change”
Source: Lightcast (Job posting education data excludes military and food service occupations)
Minimum Experience Requirement of Job Postings
70%
2018 to 2019
2023 to 2024
60%
50%
40%
30%
20%
10%
0%
No Experience Listed
0-1 Years
2-3 Years
4-6 Years
7-9 Years
10+ Years
Source: Lightcast (Job posting education data excludes military and food service occupations)
UPSKILLING & RESKILLING | 15
AUTHORS PAGE
Authors
TaRita D. Johnson Senior Vice President, Talent & Diversity
John Wiegand Business Intelligence & Research Manager
Eric Heys Marketing Coordinator
Contributors
Victor Joaquin Talent Program Manager
Rafael Martinez Business Intelligence & Research Manager
Matthew Streeter Business Intelligence Intern
Brad Comment Senior Vice President, Strategic Initiatives
Randy Thelen President & CEO
AUTHOR’S PAGE | 16
125 Ottawa Ave NW, Suite 450 Grand Rapids, MI 49503
Email: info@rightplace.org
Phone: (616) 771-0325
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