As the US economy continues to evolve, CHROs are expressing mixed views on the current economic and employment conditions. While some are optimistic about interest rates, prices, and inflation stabilizing in the short term, others are concerned about inflation’s impact on organizations’ bottom lines. Wages are not keeping up with rising prices, leading to a top concern among CHROs.
Geopolitical instability is also a significant concern for many CHROs this quarter, particularly conflicts in the Middle East and Ukraine. The upcoming 2024 U.S. election is causing uncertainty among CHROs, with mixed beliefs about how it will impact the economy.
Despite these challenges, there are indications of a softening labor market, with retention rates increasing due to wage stabilization and declining job openings. Managerial and executive-level positions remain challenging to fill as CHROs project small increases in full-time headcounts and total rewards budgets. However, other indicators remain steady.
While most CHROs expect minor increases in revenue, profits, and capital investments in the near future, exceptions exist for the service industry. Overall, CHROs express optimism about stable economic conditions despite challenges such as inflation and geopolitical instability.
