This editorial was originally published in CU Times Magazine
With a low unemployment rate of 3.5% as of March 2023, the US job market is showing signs of improvement. This figure can be deceiving however as the overall labor force participation rate is also low, which is reflective of many things from a recovering economy and its pandemic-induced conditions to an aging population. Therefore, it’s best to remain agile and opportunistic toward reported conditions as they relate to your industry and community.
As many in the credit union space are aware, the industry is experiencing a generational shift, characterized by ongoing consolidation trends that have resulted in an overall industry reduction over the past decade. According to Callahan & Associates’ Q4 report (PDF download), total Credit Unions declined YOY from 5,048 to 4,863. That’s a 3.7% attrition in one year. Additionally, as we continue to monitor inflation and the recent bank failures, we are mindful that the candidate pool may be expanding.
Further noteworthy shifts are that larger institutions are becoming even larger, while smaller ones are struggling due to factors such as competition, compliance challenges, and succession-planning troubles. It will be increasingly crucial for credit unions to recruit and retain for the future, prioritize succession planning, seek leaders who match the institution's culture, and consider candidates with a broad array of talents.
If your credit union is searching for recruitment opportunities, here’s your sign... [Continue reading here]