Despite the pandemic and the continuing supply chain crisis, the U.S. toy industry had another banner year with 13% sales growth in 2021. Predictably, this has led to a talent shortage in 2022. As we begin to move out of the pandemic, labor shortages have plagued industries across the board but seem even more acute in the toy business as companies seek to invest the proceeds of several consecutive years of strong growth into new product offerings. There has been a surge in Marketing and Product Development roles which to me indicates that companies are looking to do new things and start new initiatives.
This has come in an atmosphere where it is more difficult to find the same number of interested candidates per position than we used to. While we all have heard of “The Great Resignation” much of that has passed. Lots of people have changed jobs during the last nine months and understandably are not interested in doing so again soon. Additionally, companies are holding on to their staffs by giving lots of promotions and raises. Doing that it both easier AND cheaper than having to refill positions or worse yet, do without.
There is some hope on the horizon as the labor participation rate is beginning to creep up from pandemic lows. Some people who stayed home to care for children during school and daycare disruptions are now free to look for a job. With the pandemic beginning to dissipate, there are also a lot fewer people either home sick or caring for sick relatives. Add to that without “free money” household savings are declining especially as inflation is causing prices to rise for rent, gasoline, groceries, and everything else. My thinking is that these factors should increase the workforce but as summer approaches (Wait, what? Yeah, already), it may take until next September for these forced to be felt fully.
Here at Toyjobs, we know how to find the best people even if, for now, it is difficult to find as many strong candidates for each search. We just wrapped up our best first quarter ever! Certainly, the talent wars were a contributing factor, but I also attribute it to the changing annual migration patterns of toy industry executives. The first quarter has always been our worst with the entire toy business hopping on planes every January 2nd and cycling through Hong Kong, Nuremburg, London to New York with maybe a side trip to Atlanta. My view has always been that there were way more trade shows than necessary and often imagined an entire industry frantically laundering suitcases full of dirty shirts.
I’ve always liked the Dallas Toy Fair since there always seems to be a lot of toy execs standing around without a whole heckuva lot to do. That well suits continuous laps of glad handing and back slapping. That said, I am well aware that the Toy Association doesn’t tailor these things for my purposes. So just one more go ‘round in Dallas – savor it.
The New York Toy Fair’s move to the autumn makes a whole lot of sense. It really fits well with the industry’s buying and product development cycles, not to mention – the weather. That said, you will still find me swallowing fistfuls of Aleve while chain-complaining about “The World’s Hardest Floors.” At least I’ve had a couple of years since the last one to recover.
All the best,
Have interviewed for a few jobs in the toy industry. Have experience there and other consumer products. Perhaps if hiring was extended to an “older” candidate, you would get the experience and hard work everyone says they are looking for. Seems that older workers are being sent to pasture and the current crop of young candidates have neither the experience or long term loyalty we older candidates have. Need a shift in hiring
Hi Tom –
Read with interest your discussion on the lack of available talent. So funny now that this comes to pass when all the majors chased out everyone over 55 not too many years back, and dumped entire sales teams when Toy’s R Us and K*B went out. Those teams were often mostly comprised of older, more seasoned talent. It would be a hoot now if you solicited some “older” sales folks to fill these jobs. Think of the knowledge that would again enter the workplace with no kids to look after of people who just would love to work again in the industry they love, who don’t want to run the business, just “carry a bag” once again and only need to learn how to do business on video instead of face to face in person ! Now there’s a thought for all ! Best regards –