Transformed Workscape: The Impact of the Pandemic on the Global Business Landscape Permanently
Post-Pandemic Labor Market: Navigating the New Normal
As we navigate the reskilling revolution, the pandemic is expected to accelerate the need for digital skills upgrades. Alain Dehaze, CEO of The our group, provides insights into the evolving post-COVID labor market and how employers can prepare for the changes ahead.
The labor market recovery, while ongoing, is happening with caution. Employment and labor force participation rates across OECD countries have reached record highs, with unemployment stable at relatively low levels (around 4.9% in May 2025). However, employment growth continues but at a decelerating pace, indicating that while recovery is ongoing, momentum is weakening.
Labor markets are tight compared to pre-pandemic benchmarks, though some easing of shortages is observed. The matching efficiency between employers and jobseekers has normalized, but in some regions, tightness remains elevated due to persistent structural factors such as demographic shifts and skill mismatches.
Employers should focus on better hiring and retention strategies, including reskilling and upskilling workers to address skill mismatches. Adopting flexible work arrangements, such as hybrid, remote, and flexible work models, can improve productivity, employee satisfaction, and labor market participation.
The pandemic has accelerated acceptance of these trends and is likely to remain the new normal. Leaders who will succeed in navigating their organizations through the change ahead are those who are agile, externally oriented, have a mindset that adopts disruption, and possess relationship-building skills that can build inclusion across diverse teams and geographies.
Preparing for policy and economic uncertainties is also crucial. Employers should monitor geopolitical and economic conditions that could dampen growth and tighten labor markets further, planning for scenarios with slower employment growth and potential disruptions. Implementing responsive workforce planning using data-driven approaches can help minimize disruptions from layoffs and enable smoother transitions during economic fluctuations.
The immediate concern is the impact on people's health and wellbeing, and the uncertain recovery of the global economy. Some governments are applying statutory sick pay to self-employed or gig economy workers, and some companies are extending protection to their freelance or temporary staff. However, these measures highlight the need for a new social contract.
Employers should focus on labor market transformation to thrive in a post-pandemic world. The changing labor market has increased the number of flexible workers, but the pandemic has exposed the vulnerability of these workers in a crisis. A new social contract is needed to ensure that all workers, particularly those in diverse forms of work, have the social safety net they need.
In the post-pandemic world, the way we work is likely to undergo a fundamental transformation. Managers should agree on new rules of engagement with their team members to support connection, collaboration, productivity, and wellbeing. The pandemic is accelerating the need for leaders to learn how to lead remotely instead of centrally. A strong culture, deeply ingrained values, excellent communication skills, and comprehensive reporting capabilities are critical for leaders to align, motivate, and closely track projects and performance in a remote workforce.
Businesses and individuals can prepare themselves to be at the front of the curve by considering and planning for the changes ahead. Remote working can drive productivity improvements of up to 43%, but it requires effective implementation. Working virtually can present challenges, but with the right strategies, businesses can thrive in the reskilling revolution and the new normal of remote work.
- To address the reskilling revolution accelerated by the pandemic, employers should focus on upgrading their workforce's digital skills.
- In the process of labor market transformation, leaders need to adopt a mindset that thrives on disruption and build relationships across diverse teams and geographies.
- Businesses could improve their remote workforce by adopting flexible work arrangements, such as hybrid, remote, and flexible work models, that enhance productivity, employee satisfaction, and labor market participation.
- The post-pandemic labor market recovery requires a new social contract that ensures all workers, including gig economy workers, have access to a social safety net.
