Goldman Sachs: Companies are hiring less but making better matches

Hiring has slowed sharply across many advanced economies, yet Goldman Sachs says firms may be getting better at picking the right people. The bank's economists point to a decline in short-term job separations — workers leaving or losing jobs soon after being hired — as evidence that employers and employees are finding stronger matches from the start.

Short-term separations, once common when hires proved to be poor fits, have fallen steadily across developed economies over the past two decades and accelerated after the pandemic. That pattern shows up in US Census Bureau and Canadian labor-force data and appears broad across industries, the economists wrote, with changes in workforce composition suggesting a structural shift in how matches form.

Greater information and improved screening help explain the trend.

United States, Canada

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