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After the Great Resignation, the Great Layoff Is Around the Corner
Layoffs are intensifying
The labor market is said to be stronger than ever.
The unemployment rate is at pandemic lows. And September was the 21st consecutive month in which the number of jobs increased. The U.S. added 263,000 jobs last, and the unemployment rate fell to 3.5 percent from 3.7 percent in August.
The Bureau of Labor Statistics data points to a solid labor market and rosy prospects. Yet, the situation appears quite different when considering the overall economic picture.
In 2021, employers added 562,000 jobs per month on average. This year, the average dropped to 420,000. In September, the monthly hires halved from the annual average, plummeting to 263,000.
Together with August, when the number of jobs added was 315,000, September is the second consecutive month that reports a clear downward trend.
And while hiring is slowing, layoffs are advancing. In August, layoffs and discharges increased to 1.46 million from 1.4 million in July, showing a slight upward trend in recent months.
Tech has been one of the hardest-hit sectors. With the economy slowing and fears of a recession, layoffs in the tech world are intensifying.
