Some of the biggest companies in the U.S. are laying off thousands of employees as 103,000 jobs were lost in January of 2023, the most since September of 2020. At the same time, 517,000 jobs were gained during the same month, making economists question what our future really looks like.
As tech companies continue their layoffs, service industry jobs like Chipotle workers and airline pilots are coming back after being decimated by the pandemic. Many service industry companies are doing things like increasing wages, incentives, and even holding job fairs to help hiring. Workers are available and companies want to hire, it just comes down to giving them the skills they need to complete sophisticated jobs. All of this stands true even with rising consumer spending, rising inflation, and rising interest rates.
Reading about how many layoffs are happening in our country right now is very surprising considering the fact that so many were happening all throughout the pandemic. One would assume companies would want workers now that the economy is somewhat recovering from covid but that doesn't seem to be the case. Adding onto this it is also surprising to see how companies that were still open during the pandemic, service companies, have still not fully recovered despite things being "back to normal" for almost a year now. Very interesting article and topic to touch on.
ReplyDeleteService industries offering things like incentives or an increase in wages is only the beginning! It is definitely difficult to hire employees for jobs like airline pilots since there are specific qualifications and skills needed to be one...how much of these incentives do you think companies would offer when they are aware they are targeting a smaller margin of unemployed versus a Chipotle store would to find a couple of line workers (that basically anyone can do)?
ReplyDeleteIf jobs like tech companies are laying off employees and the result of this action is an increase in a different line of work, like service industry jobs, then I think this was a good month in our economy. It's easier for the labor force to obtain jobs like these rather than other jobs that demand certain qualifications. And to hear that wages are rising in this field of labor is good for employees and businesses.
ReplyDeleteduring the covid, the tech companies were doing wonderful since they didn't had fixed cost such as renting a restaurant or anything. Everyone was at home and were consistently focusing on Internet and Social Media, which surpassed the expected demand and prediction. This led tech companies to hire tons and tons of talents, which realizing that the demand will eventually come off once everything starts to go back to normal.
ReplyDeleteWhich obviously lead to Layoffs like we have never seen before. Almost every other industry is doing fine except for the tech. I guess, it's more about tech layoffs due their miscalculation rather than industry wide recession