Corporate America has cut large numbers of jobs in recent months to prepare for the US recession, and that trend is expected to continue.
Layoffs rose 13% in October, the biggest surge since February 2021. U.S. employers have also eased jobs this month, with job creation slowing to its biggest since January 2021.
Only 127,000 jobs were created this month. That’s well below analyst expectations and nearly half of his 239,000 jobs created in October.
Companies that have experienced significant growth during the pandemic, especially those in technology and e-commerce, are starting to cut spending before their finance chiefs fear a trying time.
Big companies like Twitter, Lyft, Stripe, Meta, and Amazon have cut their workforces drastically, upending formerly stable employers.
Layoffs rose 13% in October, the biggest surge since February 2021
Only 127,000 jobs were created this month, according to ADP Jobs Report data (Plot: USBOL data)
U.S. Treasury Secretary Janet Yellen said in a photo at the New York Times Dealbook Summit on Wednesday that the 4% unemployment rate is thought to indicate a healthy labor market.
According to US Department of Labor statistics, the current unemployment rate is 3.7%.
U.S. Treasury Secretary Janet Yellen said at the New York Times Dealbook Summit on Wednesday that she didn’t know what an acceptable unemployment rate would be, but the Treasury Department said it expected the 4% range to indicate a healthy labor market. He said he was considering whether
On Monday, a senior Federal Reserve official told the Financial Times that jobs could rise further if the central bank pushes against still-rising inflation.
New York Federal Reserve Bank Governor John Williams said he expects the unemployment rate to rise to about 5% by the end of 2023.
After the acquisition of Twitter, Elon Musk oversaw a drastic layoff at the social media company. He posted a tweet on Wednesday expressing fears of a recession and linking them to high interest rates.
“The Fed needs to cut rates now,” Musk tweeted. “They greatly amplify the likelihood of a deep recession.”
Musk is just one of many CEOs who have voiced concerns about the US economy.
JP Morgan CEO Jamie Dimon, Goldman Sachs CEO David Solomon, and Amazon founder Jeff Bezos have all predicted a US recession as a result of rising interest rates. expresses concern about the trend toward
Federal Reserve Chairman Jerome Powell said in a speech Wednesday on the Federal Reserve’s fiscal plan for the next few months that the labor market needs to remain stressed if inflation is to return to its 2% target. said there is
He said job growth was still too high, with about 290,000 positions opened each month in the past three months, to keep spending down.
John Williams, a senior Federal Reserve official, said he expects the unemployment rate to rise to about 5% by the end of 2023 from the current 3.7%.
Federal Reserve Chairman Jerome Powell to speak at the Brookings Institution on Wednesday
The US-based tech company has cut more than 28,000 jobs so far this year, according to a report by Challenger, Gray & Christmas. This is more than double the previous year.
Employers are looking to cut spending as the Federal Reserve has raised inflation consistently this year. Businesses faced rising borrowing costs, forcing some to slow growth and cut spending.
Wages and salaries increased by more than 5% last year, followed by job cuts, according to the Bureau of Labor Statistics.
American household goods company Bed Bath & Beyond saw massive mass layoffs in June when it announced it would cut about 20% of its workforce and close 150 of its 900 retail stores.
At the same time that Bed Bath & Beyond announced layoffs, Snap CEO Evan Spiegel announced plans to reorganize and cut about 20% of the company’s 5,600 employees.
Then, in early November, Mark Zuckerberg announced a massive layoff at Meta, telling employees he was “wrong” and that he would be “responsible” for the issues that led to the layoffs. It made up about 13% of Meta’s workforce.
Musk’s Twitter firings followed, leaving about 3,000 people out of work.
Most recently, Amazon employees spoke of “disruption” when they were told during a scripted meeting that 10,000 employees would lose their jobs.
