In the years following the recession, the total number of finance and accounting employees in Minnesota has increased by only 6%. However, the unemployment rate for finance professionals in Minnesota is less than 1.5%, well below the national average of 3.7%.
The chaos during the pandemic of 2020 affected almost all sectors of the labor market. But it didn’t have the same effect on finance and accounting positions in general. Due to a short supply of these top accounting professionals, job seekers are able to be more selective in their job search. Likewise, employers who were hoping the high unemployment rate might translate to an increase in new job seekers are still having to recruit professionals that are already employed.
The economic forecast for 2021 predicts that annualized growth in the nation’s gross domestic product will accelerate from the dismal 1.2% we saw in the 4th quarter of 2020 to 1.8% in the first quarter of next year. Then, the forecast gets more promising with a booming 6% projected in the second quarter of 2021. This will be followed by a consistent 3% growth each quarter thereafter, well into 2023.
With this significant and condensed improvement in GDP it is expected there will be a surge in overall talent acquisition across most industries and positions within finance and accounting.
In general, companies and employees are quite anxious to get back to the robust economy most were experiencing during the 1st quarter of 2020. We are already seeing a significant uptick in M&A activity with our private equity clients and most companies are positioning themselves to scale for expected growth. Naturally, this involves rearranging and replacing skills sets, as well as assessing support systems to improve efficiencies.
Versique Finance & Accounting conducted nearly the same number of finance leadership searches during 2020 as we did in 2019. More significantly, for the reasons cited above, the expected surge in 2021 will include even more leadership roles.
The tight labor market, combined with the expected surge in talent acquisition, will present related challenges to finance leaders in 2021. Making necessary changes to their existing teams and talent retention will be increasingly important as we advance through the year.
Looking to build your Accounting team in 2021 and beyond? Contact the recruiting professionals at Versique. You can rely on our 65+ years of combined industry experience to help you find the top finance & accounting talent in Minnesota.