Recession or Not: Many Companies Bracing for Layoffs
Posted on Sep 8, 2022 on Employment, Employment-at-Will / Restrictive Covenants, Labor Management Issues, News by
In the past few weeks several Fortune 500 companies, including Best Buy, Ford Motor, Walmart and Wayfair have announced planned layoffs, with numerous other major corporations implying the same could be necessary in the near future. A recent PwC survey of over 700 U.S. executives found that over the next six to twelve months:
- 50% of surveyed firms anticipate a reduction in headcount;
- 52% of surveyed firms foresee implementing a hiring freeze; and
- 44% of surveyed firms anticipate rescinding job offers.
Why such a bearish stance? Election year uncertainty, global-geopolitics, ongoing supply-chain delays, inflation, war in Ukraine, are all factors.
Not all Doom and Gloom
Despite these negative indicators and global uncertainties, today’s labor market remains strong. The U.S. layoff rate remains near record lows, job openings remain at historically high levels, and last month the economy beat expectations by adding 0ver 525,000 jobs – marking a complete recovery of the total number of jobs lost during the pandemic.
It is important for business leaders to remember there are multiple economies in which they operate – global, national and local. This was made very apparent during the COVID-19 pandemic. We saw many of our clients fail during the pandemic, while others thrived like never before. Just because multinationals like Best Buy, Ford Motor and others are worried about their immediate future, does not mean small businesses operating local and regional businesses need to batten down the hatches. Nobody knows your business better than you. When it is time to reign in on growth plans and staffing, you’ll know; don’t get swept up in the hype!
Brody and Associates works closely with management to develop and manage employee staffing needs. If we can be of any assistance to your organization, we stand ready to assist.