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The career ladder is dead: 6 dominant trends in the labor market in 2023

The labor market is fluid, the fastlancers are gaining ground – and you need to prepare for the crisis. Niels Østerby Jepsen, Partner at Marcher Markholt and Free Agents™, takes a look at the most important labor market trends in 2023.

Either you are a freelancer, or you are a permanent employee. But in recent years, a third career path has emerged – and it will become even more popular in 2023, Niels predicts.

The 'Fastlancers' are often experienced and sought-after specialists who take permanent employment for half or full years to solve large tasks or lead a project. When they're done, they may be traveling, freelancing, or taking time off for a period of time – before taking on a big project again. Fastlancers are part of a general trend of a labor market in disarray.

"The most important trend in the job market in 2023 is that it will be fluid," says Niels.

Here are the top 6 trends you need to know to navigate the new job market:

FROM CAREER LADDER TO CAREER PUZZLE

For many years, people have been talking about the career ladder. But the career of the future will be more of a puzzle than a straight path. Harvard Business Review wrote in November that it is moving from "career ladder" to "career playground". You can easily wander between short and permanent jobs, between very different tasks, between taking time off and working a lot, or between being a boss and a specialist, Niels Østerby Jepsen estimates.

COMPETENCES RATHER THAN ROLES

"We find that many more customers contact us to find a rare senior competency, and they are willing to pay for it. But they cannot and will not find a permanent employee. We will see more people who demand competence based on a specific task rather than looking for the employee who can fill a classic full-time position in the office."

FIND, MAINTAIN AND PAMPER THE CORE

More people are becoming freelancers, and therefore it is becoming more important to have the perfect team of permanent employees, Niels Østerby Jepsen believes. "There will continue to be a core in the company, and an important task is to find out who it is. Once the core is identified, it is important to invest in retaining them, because they are very difficult to replace and can never be freelancers."

TRANSITION IS THE MOST IMPORTANT COMPETENCE

"The old-fashioned hierarchies, where you get finer and finer titles, are challenged. It provokes some traditional business leaders wildly. It used to be said that you have to work 10,000 hours before you fully know your stuff. Now it's just as much about improving your skills as adapting. Many in the younger generations can. On the other hand, they don't care about titles, and they don't want to do the same thing for 10 years."

PREPARE FOR THE WORST

"The crisis will mean that people will be laid off. Therefore, it is a good idea to prepare yourself for the fact that it may be you. Get a handle on your CV where you need to highlight the value you have created. Some will get fired, but on the other hand, it has never been a better time to become a freelancer, join startups or join the hybrid labor market. If you are flexible, there are plenty of opportunities despite the crisis."

MORE TOP EXECUTIVES WILL SIDE JOBS

"We are getting more and more inquiries from top executives – e.g. CMOs – who are looking for a board position or some “side jobs” for an exciting startup. Here, too, the fluidity of the labor market means that you can tap into new opportunities without leaving what you have. And many managers can see that they need to learn from the small startups, the challengers, if they are to remain relevant," says Niels Østerby Jepsen.