Despite an upward growth trend in hiring data, the future remains fragile for government jobs

EL SEGUNDO, Calif., Aug. 14, 2024 /PRNewswire-PRWeb/ -- A new public sector jobs report shows promising news regarding the years-long hiring crisis the industry has been facing. With the number of government job openings declining and applicants increasing, indications are positive that agencies are beginning to fill positions.

This report, conducted by NEOGOV, a market leader in public sector workforce management, leverages data from more than 45 million public sector applicants and 700 government HR professionals and job seekers.

Findings show that in 2023, the number of public sector job openings declined by 2.3% from the year prior, while the number of applicants-per-job increased by 20.5%. National employment statistics support this data, showing an upward job growth trend in state and local government. This positive trend in filling open positions will have a significant impact on communities' ability to provide crucial services, like robust public safety programs.

While this boost is promising, the report also demonstrates that the future is fragile for government jobs. The public sector's ability to attract qualified candidates remains a critical challenge, with 51% of agencies surveyed reporting that hiring has not gotten easier over the past year.

"Agencies are seeing some marginal improvement on the numbers, however, we can also see that about 75% of open roles don't get enough qualified candidates. Coupled with the turnover of staff going to the private sector and retiring, state and local governments need to remain vigilant in hiring so as to not fall behind," said Shane Evangelist, CEO of NEOGOV.

Overall, the report demonstrates that the future of public sector employment is at a pivotal crossroad. While slight improvements in job openings and applicants this year offer a glimpse of hope, the continued struggle to attract qualified candidates poses a bigger threat to the long-term stability and effectiveness of public sector agencies.

Although the challenges facing public sector hiring are complex, the solutions outlined in this report - expanding job sourcing, improving job positioning, enhancing job appeal, optimizing the hiring process, and many others - offer a path toward a more resilient and stable public sector workforce.

KEY TAKEAWAYS FROM THE FRAGILE FUTURE

Changes are Positive but Challenges Abound

• More than 50% of agencies can't find qualified candidates.
• Out of 319 survey responses, 60% of agencies rank compensation as the top reason for employee exits. Nearly half compete with the private sector, and 40% say employees leave for better growth opportunities.
• The 'Silver Tsunami' is underway. Nearly 50% of respondents have retired all or half of anticipated retirees. 47% are starting to see an increase, but agencies expect this to continue for the next several years.
• 29% of agencies are moving to a skills-based hiring approach, which can result in ten times the number of eligible candidates.

Hiring Challenges Impact Public Sector Work

• Hiring challenges are causing high levels of staff burnout (68%), employee turnover (58%), and increased overtime (50%).
• 33% of agencies reported that hiring challenges are affecting the quality of or number of services provided to citizens.
• 41% of agencies are experiencing project delays as a result of hiring challenges.

Agencies Must Understand Job Seekers' Needs, Make Jobs More Attractive, Provide an Easy Application Process

• 60% of agencies are considering sourcing trainable candidates to expand their talent pool.
• Job seekers are more likely to apply to a job with a detailed description that outlines salary range and benefits (80%), responsibilities (66%), and career growth opportunities (49%).
• In an internal NEOGOV analysis, more than 300 job descriptions were rewritten to determine if the change impacted the number of applicants. On average, the number of applicants increased by 18%.
• Most job seekers rate their experience applying for jobs in government as average (41%), but 37% rank their experience as above average or excellent. 22% rank their experience as below average or poor.

View the full report here, and watch an on-demand webinar discussing the report in detail here.

About NEOGOV

NEOGOV, a Carlyle and Warburg Pincus portfolio company, serving over 7,000 organizations, is the leading provider of an integrated HR, payroll, talent management and policy and compliance management solution for the public sector. NEOGOV customers report increased employee productivity and engagement, time and cost savings, improved regulatory requirement compliance, and reduced paper processes, with a net result of better services for citizens. More information at www.neogov.com and www.powerdms.com.

Media Contact

Brianna Swales, For NEOGOV, 1 4079244497, brianna@swalesandcopr.com, www.neogov.com

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SOURCE NEOGOV