New research has found that tech workers have been hit particularly hard by the ongoing challenges affecting companies of all sizes, with layoffs affecting workers around the world.
AND report (opens in a new tab) In 2020, Challenger, Gray & Christmas, Inc., a career transition company, said U.S. job cuts were up 13% from the previous year, leading to a total loss of 363,824 jobs in 2022.
The report identifies several factors influencing companies’ decisions to lay off large numbers of workers, including the ongoing impact of the coronavirus pandemic, the expiration of related government aid, and other global events that have created an atmosphere of uncertainty.
Employment reductions in 2022
Among the leading sectors hit by cuts in 2022 were technology companies (accounting for more than 97,000 job losses), the automotive sector and healthcare manufacturing (both more than 30,000 job losses).
In terms of seasonality, almost 155,000 jobs were cut in the last quarter of 2022 alone, making it the worst quarter in two years.
Despite the gloomy outlook, the report also highlights some sectors that saw improvement in 2022, with telecommunications, electronics and apparel markets experiencing fewer layoffs compared to 2021.
Overall, the report paints a mixed picture of the labor market in 2022, leaving many unanswered questions in 2023. While some sectors are experiencing growth, others face major challenges as industry boundaries are pushed back.
Despite the worrying news in the first week of 2023 that several thousand jobs are to be cut by companies including Amazon and Salesforce, one recent ZipRecruiter study found that workers are still finding re-employment quite quickly, with 79 % of technical workers will be rehired within three months.
Looking ahead, the company’s senior vice president, Andrew Challenger, explained: “The overall economy continues to create jobs, although employers seem to be actively planning for a slowdown. Hiring has slowed as companies cautiously move into 2023.