Layoffs are back in the news as Musk and Facebook's CEO axed two companies.
Thousands of workers at the two companies lost their jobs this month
There are reasons to be optimistic despite the fact that more layoffs are around the corner.
Most employers can't afford to lay off a lot of workers if they want to make it out the other side, according to industry experts. You may not get as much out of your employer as you used to.
Layoffs across big tech companies came under the shadow of an increasingly bearish economic climate.
As interest rates rise, so does the cost of borrowing for companies. One major signal that the economy might be faltering is that big tech is reporting a decline in digital-ad revenues.
The macroeconomic picture isn't easy to understand. The forecast for growth-recession will have a relatively benign effect on the labor market, according to Insider.
The last two recessions saw double-digit joblessness rates in the US, but Bank of America predicts that will not happen again.
The recent tech layoffs alone weren't enough to move the unemployment figure yet, but they were still a sign of things to come, according to the chief economist at Glassdoor. It's reasonable to assume that the job market will slow further if the economy continues to contract.
4.1 million Americans quit their jobs in the month of September, which is still a high rate. There is a reason employers aren't laying off workers as the economy slows.
Even as costs rise for employers, layoffs are not an option for many businesses.
He thinks companies didn't get ahead of themselves in hiring because it was hard to find talent.
Half of the CEOs said they had increased their hiring budgets even though they were planning to reduce their hiring.
We're probably going to see a reduction in force, but we're still short of some of the critical skills.
The labor force participation rate was lower in October than it was in January 2020.
Nick South told Insider that employers are struggling to find enough high- caliber talent.
He said that they are conscious of how hard it has been to attract and retain people.
South said that employees are likely to have better bargaining positions than they did in the past.
The Great Resignation, a period characterized by high demand for employees, may be coming to an end. Employees will stay in place for longer if there is a recession and falling vacancies.
Stephan Meier, a professor at Columbia University, told Insider that it's going to be harder to find a job and that employees may not be as relaxed about finding a new job.
You would say that you go to the beach or ski for a month, and then you get a better job. He thinks that will change for the period where we are in a downturn.
Employers are becoming bolder. Ghosting of employees has tripled since 2019. When the labor market is not tight, companies may not invest as much in the candidate experience.
The structural shift built to last will allow employees to enjoy perks that were not available before.
"I think those employers that take this downturn and say 'Oh, let's shift back the power and treat our employees badly', they're not going to be the ones who are going to be successful"
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