What to expect in the staffing industry in 2023

Two warehouse workers carrying boxes and talking

Share This Post

It’s an interesting time to be in recruitment, particularly if you work for a staffing agency that manages skilled jobs or an HR department in the rapidly evolving fields of manufacturing, construction, or natural resources. With a worker shortage causing ongoing job vacancies and the effects of the pandemic continuing to impact a range of sectors, recruiters will face a diverse set of challenges and opportunities this year. 

What skilled labour trends should staffing agencies expect in 2023? 

As 2023 approaches, staffing industry leaders can expect familiar concerns to crop up, as well as new issues to emerge as the result of economic, social, and demographic pressures. 

Skilled labour shortages expected to continue

Despite the slowing economy, experts expect labour shortages to continue in 2023. Statistics Canada reports that nearly two fifths of Canadian employers expected hiring challenges in the second quarter of 2022, with particular issues in construction, manufacturing, accommodation, and food services. 

The shortage continues to be driven by a low ratio of available employees to the number of total job vacancies, which appears to be the result of demographic changes in the workforce. As baby boomers retire, there are less workers available to fill their jobs, resulting in the worker shortages we’re seeing now. Forecasts expect this trend to continue into 2023 and beyond. 

For workers, this trend may result in unprecedented bargaining power. Workers in the skilled trades will have the opportunity to choose from many open positions and demand changes in their workplaces. To attract and retain skilled workers, employers will likely need to offer higher pay and other perks in the coming months. The labour shortage is also an incentive for companies to train and promote current employees to fill open jobs. 

Inflation and recession fears loom

Although inflation is expected to peak in the last quarter of 2022, a “mild” recession is still expected in early 2023 in the US and Canada. With consumers slowing their spending, most industries can expect to take a hit throughout the first half of the year. 

In response, employers have already begun to slow hiring. However, most projections show that companies will likely avoid mass layoffs, primarily because they recognize that the talent shortage will make it tough to rehire. Most skilled workers can take comfort knowing that their jobs are safe, even amidst the current economic uncertainty. 

Pandemic effects continue

Years after the initial downturn in 2020, the effects of the pandemic continue to resonate throughout the labour market. As a new labour report from GlassDoor and Indeed explains, one of the greatest impacts of Covid-19 is that it made workers aware of their bargaining power, especially amidst the demographic changes in Western economies.  

In response to the dual challenges of the pandemic and the cost-of-living crisis, employees and contract workers have begun to ask for higher pay, better safety standards, paid sick days, and other benefits. Companies can expect these trends to continue in 2023, regardless of the state of the business cycle. 

Renewed focus on training and development

In the skilled trades, companies have begun to focus on training and development of new workers in response to the labour shortage. The lack of skilled workers has the potential to dramatically slow growth, and if companies aren’t willing to invest in their employees, they can expect profits to decline. 

As a result, employers are starting to integrate more training, apprenticeships, and mentoring into career paths within their companies. Not only will such programs help to retain workers and fill open positions, but they will attract new talent as well. 

More companies may also begin to foster partnerships with vocational schools, offer tuition reimbursements, and provide flexible working hours to enable workers to upgrade their skills while holding down a job. Additionally, some employers in the skilled trades may need to increase their pay to align with white collar jobs if they hope to avoid losing workers to other sectors. 

Diversity, equity, and inclusion more important than ever 

One of the top ways that employers can differentiate themselves in this new labour market is by embracing diversity, equity, and inclusion. According to GlassDoor and Indeed, 72% of workers aged 18- 34 surveyed say they would consider turning down a job offer or leaving a company if they did not think that their manager (or potential manager) supports DEI initiatives. As the oldest workers retire, the younger generations are expecting their workplaces to be improving racial, ethnic, and gender diversity and ensuring that the work environment is inclusive for everyone.  

What does that mean for the staffing industry? You can expect clients and hiring managers to be requesting more diversity in candidate lists in the future. 

The bottom line

2023 is expected to be a year of tough challenges in the labour market, but it also presents new opportunities. By anticipating changes in the industries that rely on skilled workers, staffing agencies and HR departments can edge out competitors and stand out. 

Searching for a software solution that will give your staffing agency an edge in 2023? Developed with the unique needs of Human Resource departments and staffing agencies in mind, Labourly™ can save your team time and resources this year. Book a demo call with our team to discover what the right solution can do for your team.

More To Explore

Get Started Today!

Discover how Labourly™ saves you time and money by intuitively managing your diverse and skilled workforce.

Muhammad Ehsanullah


Perfection is achieved not when there is nothing more to add, but rather when there is nothing more to take away.” Antoine de Saint-Exupery

A valued member of our Labourly development team, Ehsan has a Bachelor of Computer Science and proven analytical, programming and coding skills.

An experienced web developer, Ehsan’s abilities are supported by impressive knowledge of cutting-edge technology and an exemplary understanding of database management systems, data structure, analysis and design of algorithms, and software engineering.

Ehsan focuses his skills and attention on design, installation, testing, and maintenance of web application development systems – as he continually reinforces industry best practices through his use of user interface, testing, and debugging processes.

Cheryl Lane

Application Tester

Strive not to be a success, but rather to be of value“.  Albert Einstein

Cheryl Lane is a true “solution developer”. She is passionate about collaborating with clients and team members on projects that encompass requirement-gathering, design, configuration including UI, business logic, and integration between components. She enjoys finding the answer to problems and focusing her strong interest in IT analysis and project management toward the answers that form workable solutions.

With a Bachelor of Science in Computer Science and her strengths in project management, technical documentation and troubleshooting, Cheryl has proven a welcome addition to our team.  

She is extremely familiar with business operations platforms such as SharePoint, and experienced in managing and increasing software adoption, configuration, administration, and development. Cheryl’s broader expertise in training individuals on best use and optimization of software platforms is an additional benefit for our clients. 

Reggie Malebranche

Growth Consultant

“What you have done is nothing, compared to what you can do.” -Grant Cardone

Enthusiastic and committed to success in sales, customer service, and business development, Reggie brings his energy and determination to our core Labourly™ Growth team.

With a Bachelor of Arts in Economics from Simon Fraser University, and a laser focus on his goal of connecting people with exactly what they want and need, Reggie stays current in technology sales and customer service training, challenging and sharpening his skills with courses through the Grant Cardone Business Training University.

He has an entrepreneurial spirit that can be seen throughout his career, and has established lasting relationships in the hospitality and technology sectors. Reggie consistently exhibits a “whatever it takes” attitude toward customer service. He willingly goes above and beyond, to identify the issue that is limiting productivity, and present the most effective solution for our Labourly™ clients.

Ahmed Naseer


“Never allow the same bug to bite you twice.” – Steve Maguire, software engineer and author of Writing Solid Code and Debugging the Development Process 

Ahmed is an experienced software engineer focused on achieving the highest level of quality. He consistently targets the space for technological improvement, and is driven to develop new ideas. He delivers timely results through advanced solutions.

With a Bachelor in Computer Science and more than six years of web application development experience, Ahmed is fluent in .Net technologies, cloud services, and Azure DevOps Services.

Ahmed combines his expertise in the technical management of code with his passion for ensuring a smooth process for deployments. He is an integral part of our Labourly development team.

Ibrahim Mushtaq


“If humans can understand the code you have written, consider yourself a good programmer.”

A firm believer that teamwork makes the dream work, Ibrahim is a team player in the truest sense, going above and beyond to help anyone in need. He is ideally suited to his role as Application Tester for Labourly, our latest productivity platform, combining his natural desire to provide assistance with his exceptional skills.

Ibrahim has a Bachelor of Computer Science (Honours) degree, and he specializes in anything related to problem solving through coding. He is thorough, diligent, and determined to take technology to the point of perfection.

From game programming, to hosting apps on the cloud, Ibrahim is a skilled full stack developer who speaks the language of IT fluently. He puts his technical knowledge and skills to best use every time.

Kayla Chang

Multimedia Designer

“The best designs are always felt and rarely seen.”

A graduate of Interactive Media Design at Fanshawe College, Kayla believes in the magic of people, which directly influences her human-centered approach to design. Her goal is human connection through design that keeps on giving.

She focuses her web design, branding, video editing, and graphics on enhancing user experience through functional, accessible, and empowering designs that stay true to our clients’ vision. Kayla applies her versatile skill sets to each new project with determination to achieve complete client satisfaction.

Kayla collaborates with individuals or entire marketing divisions within small-to-medium sized businesses, large corporations, and academic institutions. She provides sustainable and elegant solutions, based on how users will interact with the final product, and how the project continues to grow after her involvement.

Julia Peden

Product Manager

“Design is so simple; that’s why it’s so complicated.” – Paul Rand

Julia focuses her creative problem-solving skills and IT experience on overall product management, ensuring that the ideas fuelling app development move from concept to market. She uses her extensive product knowledge to recognize and address challenges, while identifying and responding to opportunities. Julia is a key member of the forward trajectory team for Labourly™.

After graduating from both Western University and Fanshawe College, Julia has consistently applied her knowledge of consumer behaviour patterns. Combining this crucial understanding with her practical web development skills, she designs and manages innovative digital experiences for our highly satisfied clients.

Originally our Creative Lead responsible for overseeing the User Interface and User Experience design of Labourly™, Julia has been entrusted with the role of Product Manager. She organizes internal and external collaborations to establish the product roadmap for Labourly™, while forecasting tasks to organize feature timelines. In addition, Julia focuses her time management and leadership skills on supervising our marketing and development teams.

Jane Ramachandran


“There’s always a way…”

Jane Ramachandran (B.Sc., MBA), President and CEO of Resonant Business Solutions Inc., lives by the motto “there’s always a way to reach the goal”. With this outlook, Jane provides a high-level of problem solving, expertise and fluency in business development, administration, project scheduling, cost budgeting, and grant funding from idea to post-submission.

As a business development consultant with over two decades of experience, Jane equips clients with tried and true strategies to increase their impact, get stakeholders on board, and attract marketplace support. Drawing on the worlds of science, business, and technology, Jane has a well–honed instinct and a proven ability to craft compelling proposals that sell grant-worthy ideas and projects.

At the top of her field, Jane was nominated as an Influential Woman of Northern Ontario and 2015 Winner, Canada’s Top 10 Aspiring Women Entrepreneurs. Jane has assisted in developing grant proposals for projects collectively valued at >$1 billion for a roster of post-secondary institutions, research centres, private sector clients, and not-for-profits. Responsive client support, business and funding expertise, and big-picture strategies propel clients and their projects to the forefront of innovation in their sector.

Vicknesh Ramachandran

CEO & Co-Founder

“Relationship is number one.”

Vick believes that service and relationship building are the most important criteria for success. He is friendly, personable, patient, and brilliant at troubleshooting. With Vick’s sense of humour and easygoing attitude, he makes the most complex of projects seem easy to manage.

From website portal design and hosting to groundbreaking app development, Vick has the experience and expertise to deliver on all your IT needs. He is a cutting-edge information technology solutions and network specialist with close to 20 years of proven technical and management expertise. Vick has been trusted with IT and website development projects for the Windsor Allergy and Asthma Education Centre, the Town of Kingsville, Odette School of Business (University of Windsor), Centre for Business Advancement and Research (CBAR, University of Windsor), and Connecting Windsor Essex.

Vick’s main responsibilities include leading our IT app and web development team, technical architecture and programming, and finding the latest innovative technologies to enhance clients’ personal and professional effectiveness. Not your stereotypical IT guy, Vick likes to mentor and educate through training and advice. He is an authority on IT, websites and app development, and he specializes in technical consulting and advocacy to help you get the hardware and software that meet your needs, now and into the future.