What role does the 2016 Presidential Election play in the job market? I have read multiple studies with information and different theories answering this very question. So what is true? What is false? Read below to find what parts of the job market and employment are impacted by the 2016 Presidential Election.
TRUE: Companies factor in the election when business planning
According to a recent survey by the American Institute of CPAs, 64% of CEOs, CFOs and other senior-level CPAs in U.S. companies said the outcome of the election is a consideration or factor in their company’s business planning, budgeting or forecasting for the next fiscal year. As the 2016 election closes, employers will need to consider how policies will change or become more firmly rooted. With changes on the horizon, some companies will be more cautious when it comes to job creation, spending and expansion.
FALSE: Hiring is halted prior to the election
The American job market is actually very strong right now with unemployment at a solid low rate. According to AICPA, 81% of companies said the election is not a factor in staff decisions and/or companies plan to keep hiring at their current pace. Only 5% of respondents said they plan to reduce hiring until after the election.
SLIGHTLY TRUE: Temporary employment increase as a result of the election
While you can expect more positions to be created to support the presidential campaigns of all candidates in 2016, the increase in temporary workers is all rather independent of the election. Instead, the increase in temporary workers has rather been an ongoing hiring trend for the past few years (before the election even started). According to CareerBuilder, job growth will hold steady in 2016 —with 47% of employers expecting to add temporary or contract workers during the year. This is only a slight increase from 2015 (46%). So while in high-demand, the increase is largely equated to a changing workforce and a better U.S. economy.
FALSE: The election does not hurt workplace productivity
Anytime an election occurs, emotions run high for all those involved. This election was not any different. Because voters have intense feelings about presidential candidates and their proposals, it is common for these conversations to move into the workspace. However, studies show that these conversations in the workspace can affect productivity. An APA survey reported that:·
Regardless of who won the election – the truth is this. It is inevitable that political conversations around the outcome of the 2016 campaign will continue to be a hot topic in business planning and in workplace conversations to come. One thing is for sure though – while hiring might not have drastically changed, retaining productive employees will be critical to ensure business success throughout the rest of 2016.