2023 September Life Sciences Update

Is the U.S. Life Sciences Labor Crunch Easing?

› A cooling economy has led to a deceleration in both hiring and job postings in the first half of 2023, as some companies recalibrate their plans. › Despite the recent slowdown, postings continue to outpace hirings on a year-to-date (YTD) basis. As of August 2023, postings outpaced hiring by 14%; however, this is lower than the same period last year when postings outpaced hiring by 34%. › Current job postings have a 3-to-1 intensity ratio, meaning that each unique job is posted an average of three times, indicating some continued difficulty in filling open positions. › The number of students completing life sciences degrees has grown 6% from 2019 to 2021. While not all these degrees will lead to a career in the sector, it provides a larger pool of skilled talent. Key Takeaway: Contrasting life sciences with the overall labor market highlights the challenges in filling positions that are very specific to the sector. The ratio of hires to postings is currently three hires-to-one job posting (3:1) for the overall labor market. This ratio is closer to 1:1 in life sciences where postings outpace hiring.

U.S. Life Sciences Job Postings Decline After Post- Pandemic Peak

Avg Monthly Hires

Avg Monthly Postings

Annual Completions

70

265

Entering the job market

260

60

255

50

250

40

245

240

30

235

20

Life Sciences Degree Completions (Thousands)

230

Monthly Hires and Postings (Thousands)

10

225

Source: Lightcast

18 / CUSHMAN & WAKEFIELD

LIFE SCIENCES SEPTEMBER 2023