The Newly Unemployed

It is hard to pick up the paper as December comes to a close without seeing articles about layoffs. Goldman Sachs announced they would be laying off up to 4,000 people or 8% of their workforce in January.

Other layoff announcements include:

• Cisco – 5% of their workforce (December 2022)
• DoorDash – 6% (November 2022)
• Morgan Stanley – 2%
• Buzzfeed – 12%
• Amazon – 3%
• Meta Platforms (formerly Facebook) – 13%
• Twitter – 50%

According to the Bureau of Labor Statistics (BLS), as of the end of October, there are 10.7 million jobs available.

So, how do the layoffs coordinate with the openings?

Zip Recruiter conducted a survey in late October with the following results.

• 79% of laid-off workers found a new position within three months of beginning their search
• Four in 10 tech workers found a job less than one month after they started their search

According to Julia Pollak, chief economist at Zip Recruiter, tech workers are “still the most sought-after workers with the most in-demand skills.”

What about non-tech workers laid off? According to the Survey, they found jobs quickly. The BLS said the median time someone was unemployed is 8.1 weeks – below the 9-week pre-pandemic level.

Tech workers also found jobs in other industries. The survey showed:

6% found jobs in retail or e-commerce

5% in financial services or fintech

2% in healthcare

Caveat: – how the survey classifies workers.  If you work for Meta, you are classified as a tech worker even if you were in human resources. The classification is based on the company, not the position.

Ryan Sutton, district president of Robert Half said, “From August 2020 to May 2022, it (the hiring) wasn’t red-hot. It was lava-hot.”

As in many cases, certain segments of the economy went on hiring sprees to meet demand in the pandemic environment. Now, the demand is declining as we move more towards an equilibrium of supply and demand.

While it isn’t pleasant to lose your job, according to the survey, new jobs are available.