January hiring was among the lowest on record, with companies announcing the highest level of job cuts in January since early 2023.
Financial sector layoffs totaled 23,238, the worst month for the sector since September 2018. Tech layoffs totaled 15,806, the highest since May 2023. Food producers announced 6,656, the highest since November 2012.
January’s dismal hiring statistics reflect a broader economic retrenchment, as companies across various sectors brace for what many analysts predict could be a challenging fiscal period. The sharp increase in job cuts, particularly in the financial and tech sectors, signals a shift towards cost-cutting measures and operational efficiency. Financial institutions, grappling with the volatility in global markets and tightening monetary policy, have been forced to reassess their workforce requirements, leading to significant layoffs. Similarly, the tech industry, which experienced exponential growth during the pandemic, is now facing a reality check, with many companies adjusting their growth forecasts and scaling back on their workforce as a response to decreased consumer spending and investment.
The impact of these job cuts extends beyond the immediate loss of employment, contributing to a sense of uncertainty and caution among consumers and businesses alike. This cautious approach is likely to affect consumer spending, further influencing economic growth prospects. Additionally, the rise in layoffs within food production, a sector traditionally considered more resilient to economic downturns, underscores the pervasive nature of the current economic challenges. As companies navigate through these turbulent times, the focus has increasingly turned towards strategic adjustments and long-term sustainability, rather than immediate growth. This period of adjustment, while painful in the short term, may be necessary for companies to emerge more resilient and adaptable to the evolving economic landscape.
With layoffs at the top of many people’s minds, it’s important to have a plan in place.
“Layoffs are stressful and can be devastating for individuals and families. It seems that companies are often laying off thousands of employees. Even though it can be scary to feel that your job isn’t secure, there are things you can do to prepare yourself,” says Finance Coach Jeannie Dougherty.
What are some steps you can take?
First, review your bank and investment accounts and look at what is there before making any financial decisions. Do you have a severance package, and if so, for how long? When can you expect payment? This will help you map out your options. Then, take a look at your savings. It is a crucial component to weathering uncertain periods.”
You can also be proactive and keep your network up to date while making new connections.
“Another tip is to check into your LinkedIn and keep yourself connected and engaged. Above all, ask yourself what you are willing or not willing to do. Consider taking on a temporary second job or a contract job. Even volunteering in between jobs to help boost your resume and allow you to learn additional skills.”
With layoffs at the top of many people’s minds, it’s important to have a plan in place. Finance Coach Jeannie Dougherty offers valuable advice for those facing job insecurity. Layoffs are stressful and can be devastating for individuals and families. It seems that companies are often laying off thousands of employees. Even though it can be scary to feel that your job isn’t secure, there are things you can do to prepare yourself. Dougherty emphasizes the importance of being financially prepared and staying connected within your professional network as key strategies to navigate these uncertain times.
Firstly, Dougherty suggests a thorough review of your financial situation. Review your bank and investment accounts and look at what is there before making any financial decisions. Do you have a severance package, and if so, for how long? When can you expect payment? This will help you map out your options. Then, take a look at your savings. It is a crucial component to weathering uncertain periods. Additionally, staying proactive and keeping your network up to date while making new connections can make a significant difference. Check into your LinkedIn and keep yourself connected and engaged. Above all, ask yourself what you are willing or not willing to do. Consider taking on a temporary second job or a contract job. Even volunteering in between jobs to help boost your resume and allow you to learn additional skills. These steps can help mitigate the impact of layoffs, providing a clearer path forward during challenging economic times.
Published by: Martin De Juan
