We may be heading toward a recession in 2023, and layoffs in the news are concerning. How do you know if your company will be next? Should you work harder to prove that you’re a valuable employee, or start job searching right away?
"Right now, you want to be cautious. But you also have a good shot at keeping your job. So stay in it,” advises Allison Hemmings, CEO of The Hired Guns, a recruiting company. It’s important to stay focused on making an impact at the office and making sure that you and your boss are in line with what looks good for your individual role, says Hemmings.
Knowing the signs of a layoff at your company is the first step to reducing job stress in this uncertain economic climate.
Are Widespread Job Layoffs Coming in 2023?
Cuts and layoffs in the tech industry and other industries have been in the news recently, with well-known companies such as Google and Meta reducing their workforces by the thousands. However, the unemployment rate, at 3.4%, is at its lowest point in decades. In January, more than 128,000 jobs were added in the leisure and hospitality industry, which is also the fastest-growing industry, according to the U.S Bureau of Labor Statistics. Other industries are seeing gains as well, such as the health care and business services industries.
Experts are still monitoring inflation levels and whether the U.S. will have a “soft landing” when it comes to a recession, as well as how it will impact the job market in 2023. It’s good to be flexible and aware of the signs if a layoff is about to happen to you.
Who Usually Gets Laid Off First and When?
Newer employees that have been in their role up to a year tend to get laid off first, according to a 2022 study by LinkedIn and Business Insider. In some cases, recruiters and higher earners are let go, and millennials are disproportionately represented when it comes to layoffs.
Upper management may also adjust the business plan, and layoffs will then reflect the new priorities of the company, according to the career website Dice. There may be a greater focus on projects that generate revenue, rather than nonessential projects. Those with redundant, outdated or surplus skill sets might be more likely to be laid off, according to Dice.
Layoffs can occur at any time. But as far as when layoffs most often occur, January and December are months well-known for job losses. Employers are reviewing their budgets during that time of year.
Here are some ways to find out if your company really is preparing for layoffs.
1. Employees Who Leave Don’t Get Replaced
Involuntary attrition means a company may have decided to eliminate the position altogether after an employee leaves, according to Investopedia. This leads to a smaller, streamlined workforce.
2. Hiring and Spending Freezes
Companies try to start saving money in big ways, reducing costs where they can. Remember, though, that companies can also go through periods of “belt-tightening” too.
3. New Projects Get Put Off for Later
This may mean budgets are shrinking for projects that aren’t needed or that do not directly translate into revenue.