Actual Layoffs and Dismissals in the United States – not just a layoff announcement by a global company, something that can’t happen in the US – was one of the main takeaways that stood out in job postings and job openings today. Bureau of Labor Statistics Labor Turnover Survey (JOLTS): After a slow zigzag over months from the tightest labor market lows, it surged in January.
Every day, even in the best of times, companies are laying off or laying off employees. This is part of the normal turnover in the vast US labor market. From 2011 to 2019, layoffs and terminations averaged 1.8 million per month. In good times, most of these workers find new jobs quickly. But in times of economic downturn, the flow of newly unemployed workers increases, firms cut jobs, and unemployment rises. this hasn’t happened yet.
What happened in January saw layoffs and dismissals surge to 1.72 million, the highest since December 2020, after months of spikes from historic lows of about 1.4 million in 2021 and 2022. That’s what I did. Pre-pandemic range. There is a clear pattern of returning to the normal range. This is a sign that the tightness in the labor market is easing a bit.
Anyone else thinking twice before quitting? One phenomenon in the tight labor market of the past two years is that workers do not understand that there are better jobs out there, with better wages, better working conditions, or shorter commutes. , I quit my current job in large numbers. A huge amount of churn occurred in the workforce to take on better jobs. This arbitrage deal by newly empowered workers spread wage increases across the economy as employers had to raise the conditions for hiring and retaining employees.
After a slow zigzag decline over the months, the number of workers out of work fell sharply in January, falling from about 4.5 million in late 2021 and early 2022 to 5.5 million in 2021. It fell to 3.88 million, the lowest since March.
The pre-pandemic record was 3.55 million in January 2020, indicating high turnover in an already tight labor market. So this, at a time when the labor market is still tight, and historically high turnover, shows that some of the frenzy is exuding.
Smoking cessation, which has fallen from an ultra-high level a year ago to still at a historic high, could signal changes in the labor market, including:
- Employers no longer raise the bar like they used to, no longer offering incentives for workers elsewhere to quit their current jobs and jump ship immediately.
- As you’ll soon see, there are fewer attractive job openings in technology and social media.
- Declining worker confidence that better jobs can be found.
The number of job openings remained flat January values for the last two years are 10.82 million seasonally adjusted and 10.77 million unseasonally adjusted, up from a pre-pandemic range of 7,200. This indicator does not indicate that tightness in the labor market is easing.
This data is based on surveys sent to 21,000 companies asking how many were actually posted, how many were actually hired, how many were laid off or laid off, and not how many were posted online.people who quit
What’s happening is that jobs have disappeared in some industries, especially social media and some of the tech companies are categorized as “information,” while the vast sectors of “professional & business services,” etc. , there are no more vacancies in other industries. Rose.
“Information” is the biggest damage to recruitment. Smaller sectors with just 3 million employees include web search portals, data processing, data transmission, information services, software publishing, film and sound recording, broadcasting including the Internet, and telecommunications. Many technology and social media companies fall into this category (the others are part of the vast and very broad “Professional and Business Services” sector). “Information” is where many of the layoff announcements occurred.
After plummeting nearly 50% in December (the biggest drop since the dotcom bust), job numbers in the ‘information’ sector recovered slightly, consistent with the noise across the data series, over the past two years. His 143,000 job openings in January were down 38% from a year ago.
In contrast, job openings in “Professional & Business Services” increased Stayed in the astronomical sphere. This is a vast category that includes some tech companies, and in the following subsectors he has 22.4 million employees: Enterprise and Enterprise Management; Administration and Support; and Waste Management and Remediation Services.
Job openings rose to 2.18 million, highly astronomical and down slightly from its peak in March 2022.
After Overhiring in Technology and Social Media….What tech and social media CEOs are admitting today measuring kalpa The blog post is that they over-hired during the pandemic, expanded into a future that didn’t come, and are now cutting back some of their expanded workforce to undo the costs.
Also, as the startup bubble bursts and these organizations burning cash like there is no tomorrow are unable to get funding from VCs, the public markets have crushed those that have stepped out of the IPO or SPAC windows. is also happening. No more money can be collected from the public. And they have to cut headcount to slow down the cash burn and postpone the day of the calculation, the day the money runs out, a little longer.
But what this data shows is that most of the rest of the labor market is still largely in cloud 9, just like the rest of the labor market data pile.
Editor’s Note: The summary bullet points for this article were selected by the Seeking Alpha editors.