​As we talk internally as a team and externally with our colleagues, there seems to be one common thread across the conversations we’re having: slowness!

Everything related to bringing in accounting help has slowed down. The prevailing trend right now is business leaders being more cautious with hiring and dragging their feet when it comes to outsourcing.

Part of this reduced pace isn’t their fault. A worsening talent shortage in accounting is stymieing the hiring process. But a dearth of accountants isn’t the only factor leading to a slower hiring process. Business leaders are also taking longer to make hiring decisions and/or decide to outsource their critical accounting activities due to concerns of an impending economic slowdown.

​For the last few years, it seems like every accounting article has mentioned the shortage of accountants in one way or another. Business leaders, recruiters, and accountants themselves are bemoaning the ongoing accountant shortage. In a time when people have a hard time agreeing about anything, the consensus these days among everyone talking is unanimous – the scarcity of accountants has become a serious problem. And yet, the proposed solutions continue to fall short of addressing the problem in a meaningful way because they fail to take into account why accountants are actually leaving. 

Only time will tell if/when a recession will occur. Right now, business owners are collectively holding their breath as they wait to see how the economy will progress over the course of the next year, which begs the question: “What should your business be doing during this waiting period?”
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Knowing what you will do during an economic downturn is an important part of any risk management strategy, especially when economists are warning that the nation may be headed for a recession in the near future. 

Gig work can trace its origins to before the creation of the internet. However, over the last decade companies like Uber and Lyft have steadily led the push in the mass acceptance of the gig economy. In 2020 as lockdowns swept the nation, hundreds of thousands of new gig jobs became available virtually overnight thanks to Amazon, DoorDash, Grubhub, Instacart, and Shipt. The pandemic accelerated a shift that was already well on its way to becoming the next big trend in work.

But the quickly burgeoning gig economy was not isolated to takeout and grocery delivery. Professional gig work also grew exponentially as workers were laid off and left their traditional office jobs to manage personal responsibilities. According to a Harvard Business Review article on Thriving in the Gig Economy,

When looking to hire management-level financial roles, it is crucial to understand the current recruiting trends that will affect your ability to hire the right candidates. So, what are we seeing so far this year?

Today’s employment market is like nothing we have seen before. Accounting and finance professionals continue to be in high demand despite unemployment figures being up in other professions, but recruiting has changed significantly over the last year. Effective recruiting right now hinges on utilizing digital tools, reimagining job requirements, prioritizing career growth, providing the right employment incentives, fostering a positive workplace culture, and utilizing a professional recruiting firm

2020 changed what employers are asking of their employees, which is why it is no surprise that employees have changed what they are looking for in their current and future employers as well. Understanding what applicants want is crucial because great hiring reduces turnover. Additionally, being in tune with what job seekers want gives your company an advantage in recruiting and hiring top talent.
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With unemployment numbers continuing to fall, job seekers are back in the power seat as their needs in an employer continue to evolve in response to the pandemic-related work landscape. So, what do job seekers want these days? 

July numbers reported an increase in small business loan approval rates at big banks (i.e. banks holding more than $10B in assets). Approval rates of 13.5% in June rose to 13.8% in July, marking the first increase since January of 2020 when big bank loan approval rates soared at 28.3%.

This increase was mirrored in loan approval rates at small banks as well, which rose from 18.4% in June to 18.6% in July. This was a continued bump from 16.9% in May, but still remains well below the 50.3% mark that small business loan approval rates at small banks hit back in February of this year.

It is important to note that these loans were separate from the widely distributed government PPP loans that many businesses successfully applied for and received earlier in the year.

The widespread increase in bank loan approvals throughout July was accompanied by a continued decrease in the unemployment rate, bringing it to 10.2%. Unemployment had peaked in April at 14.7% and has continued to fall month-over-month since. July alone added 1.8 million nonfarm jobs as economic activity that had been restricted due to COVID resumed, especially in the areas of leisure, hospitality, retail, professional services, and health care. 
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These indicators may be a sign of an economic rebound on the horizon.