Being laid off certainly sucks. Currently, however, the odds of being laid off in certain industries may be significantly higher. The economy is down, and a recession is looming, but not all industries will be affected to the same degree.
Recently, a number of large tech companies have made headlines by announcing layoffs. But mass layoffs have remained relatively rare over the past six months.
Some industries did experience layoffs at nearly three times the rate of others. According to the Bureau of Labor Statistics, the arts and entertainment industry, in particular, will see an average layoff rate of 3.1% from June to November 2022. That equates to an average of about 72,000 job cuts per month.
The industries with the worst layoffs included construction, professional and business services (including jobs in accounting, engineering and computer services) and information. The information industry covers areas such as publishing, media, telecommunications and data processing.
Job cuts in the tech sector have attracted much attention, but those jobs have been spread across career and business services and information industries. While layoffs in these industries have risen, according to the Bureau of Labor Statistics, the rise has been modest. Nick Bunker, director of economic research for North America at Indeed Hiring Lab, told Fortune: “Part of the reason for the slight increase in layoffs may be that some non-tech companies are included in the industry, and these companies have performed well in terms of layoffs. better.”
Many tech companies also typically give weeks of notice and six months of severance packages. That means data related to layoffs can come with a lag, until those laid-off workers disappear from the company’s payroll. So, while we know about these layoffs, they may not yet be reflected in the data.
The number of layoffs remains relatively low. Taking the construction industry as an example, Bunker said: “While layoff rates in many industries were higher than in other industries during the statistical period, layoff rates in many industries are actually lower than before the new crown epidemic.” In the past six months, the construction industry The average layoff rate in the U.S. was 1.8%, more than double the combined layoff rate for the economy as a whole. But that was below the average layoff rate of 2.9% in 2019.
Derek Gallimore, chief executive and founder of Outsource Accelerator, said workers should still consider the relative level of employment stability across industries when entering the job market for the first time or considering changing careers.
Gallimore added: “The differences in layoff rates across industries appear small at first glance, but we found that arts and entertainment workers were 13 times more likely to be laid off than federal government employees.”
Which industries are more stable during recessions or downturns? LinkedIn found relatively stable jobs in utilities, education, consumer services and even government.
The data bears this out. In the second half of 2022, even in the face of market volatility, high inflation and economic difficulties, the rate of layoffs and layoffs of government employees will remain the lowest.
Health care is also the industry with the most stable employment this year, Bunker noted. “Healthcare is a resilient industry because, on the one hand, there is strong long-term demand for medical services, and on the other hand, the field is already facing understaffing,” he said. (Fortune Chinese Network)
Translated by: Liu Jinlong
Reviewer: Wang Hao
Getting laid off sucks. But the chances of it happening to you can increase depending on what industry you work in. And despite the looming threat of a recession, not all industries are impacted to the same degree during an economic downturn.
While the tech industry has made headlines with layoffs announced at several major companies recently, widespread layoffs still have remained relatively scarce over the last six months.
But other industries did experience layoffs—nearly triple the rate compared to others. The arts, entertainment, and recreation sector, in particular, had an average layoff rate of 3.1% from June to November 2022, according to data from the Bureau of Labor Statistics . This adds up to an average of about 72,000 employees laid off per month.
The other top sectors for layoffs included construction, professional and business service—which includes jobs in accounting, engineering and computer services—and the information industry. That sector covers those working in publishing, media, and telecommunications, as welling as. data process
Tech layoffs have been very high-profile, but the jobs are spread across the professional and business services as well as information sectors. And while those industries have seen a rise in layoff rates recorded by the BLS, the spike hasn’t yet been severe “Part of this shallow rise might be because other non-tech companies are included in this sector and are doing better on the layoff front,” Nick Bunker, economic research director for North America at the Indeed Hiring Lab, tells Fortune.
Many tech companies also typically provide several weeks of lead time and severity packages up to six months. That means the data around discharges may be delayed until after those employees exit the payroll. So while we know about the beearoffs, they may not apping y in the data.
Still, the number of layoffs is relatively low. “While the layoff rates in many of these industries are high compared to other industries during that time period, many of these rates are actually low compared to pre-pandemic years,” Bunker says, citing the construction industry as an example. Over the past six months, the average layoff rate in the construction sector was 1.8%, which is more than double the aggregate rate for the whole economy. But that’s less than the 2.9% average layoff rate in 2019 : 2.9%.
Yet workers should still consider the level of job stability associated with each industry when entering the job market for the first time or considering a change of career, says Derek Gallimore, CEO and founder of Outsource Accelerator.
“While the difference between the percentages may at first appear small, we found that those in the arts, entertainment, and recreation industry are actually 13 times more likely to be laid off than those working for the federal government,” Gallimore adds.
So what industries tend to be more stable, even in a recession or economic downturn? LinkedIn has found that sectors like utilities, education, consumer services, and even government jobs tend to be fairly stable.
The data bears that out. Even with the market volatility, high inflation, and economic hardships during the second half of 2022, government employees saw the lowest rate of layoffs and discharges.
Health care may also be a more stable sector as well this year, Bunker says. “Health care has been a resilient sector due in part to the strong long-term demand for health services and already tight staffing in the field,” he says.
This article is reproduced from: https://www.fortunechina.com/shangye/c/2023-01/23/content_426498.htm
This site is only for collection, and the copyright belongs to the original author.