'Weirdness' plagues the job market

[csrcsr]

Record hiring. Mass layoffs. Trying to pin down today's job market is an exercise in frustration, all thanks to what JPMorgan Chief Global Strategist David Kelly calls a "legacy of weirdness" left by the pandemic. While tech firms have been cutting jobs, the service sector is still scrambling for workers. Experts' main worry is that layoffs, high interest rates and inflation could cause a ripple effect, eventually reducing hiring even in industries that have been adding workers, CNBC reports.

 

 

Covid’s ‘legacy of weirdness’: Layoffs spread, but some employers can’t hire fast enough

• Layoffs have recently expanded beyond tech giants like Microsoft and Amazon.
• Service industries such as hospitality and restaurants have been hiring to rebuild after the pandemic.
• The Fed has been closely watching job and wage growth as it seeks to tame inflation.

 

A sign for hire is posted on the window of a Chipotle restaurant in New York, April 29, 2022.

Shannon Stapleton | Reuters

Job cuts are rising at some of the biggest U.S. companies, but others are still scrambling to hire workers, the result of wild swings in consumer priorities since the Covid pandemic began three years ago.

Tech giants Meta, Amazon and Microsoft, along with companies ranging from Disney to Zoom, have announced job cuts over the past few weeks. In total, U.S.-based employers cut nearly 103,000 jobs in January, the most since September 2020, according to a report released earlier this month from outplacement firm Challenger, Gray & Christmas.

 

Meanwhile, employers added 517,000 jobs last month, nearly three times the number analysts expected. This points to a labor market that’s still tight, particularly in service sectors that were hit hard earlier in the pandemic, such as restaurants and hotels.

The dynamic is making it even harder to predict the path of the U.S. economy. Consumer spending has remained robust and surprised some economists, despite headwinds such as higher interest rates and persistent inflation.

All of it is part of the Covid pandemic’s “legacy of weirdness,” said David Kelly, global chief strategist at J.P. Morgan Asset Management.

The Bureau of Labor Statistics is scheduled to release its next nonfarm payroll on March 10.

Some analysts and economists warn that weakness in some sectors, strains on household budgets, a drawdown on savings and high interest rates could further fan out job weakness in other sectors, especially if wages don’t keep pace with inflation.

 

Wages for workers in the leisure and hospitality industry rose to $20.78 per hour in January from $19.42 a year earlier, according to the most recent data from the Bureau of Labor Statistics.

“There’s a difference between saying the labor market is tight and the labor market is strong,” Kelly said.

Many employers have faced challenges in attracting and retaining staff over the past few years, with challenges including workers’ child care needs and competing workplaces that might have better schedules and pay.

With interest rates rising and inflation staying elevated, consumers could pull back spending and spark job losses or reduce hiring needs in otherwise thriving sectors.

“When you lose a job you don’t just lose a job — there’s a multiplier effect,” said Aneta Markowska, chief economist at Jefferies.

That means while there might be trouble in some tech companies, that could translate to lower spending on business travel, or if job loss rises significantly, it could prompt households to pull back sharply on spending on services and other goods.

The big reset

Some of the recent layoffs have come from companies that beefed up staffing over the course of the pandemic, when remote work and e-commerce were more central to consumer and company spending.

Amazon last month announced 18,000 job cuts across the company. The Seattle-based company employed 1.54 million people at the end of last year, nearly double the number at the end of 2019, just before the pandemic, according to company filings.

Microsoft said it’s cutting 10,000 jobs, about 5% of its workforce. The software giant had 221,000 employees as of the end of June last year, up from 144,000 before the pandemic.

WATCH NOW

VIDEO08:24

Is the bubble bursting for tech workers?

 

Tech “used to be a grow-at-all-costs sector, and it’s maturing a little bit,” said Michael Gapen, head of U.S. economic research at Bank of America Global Research.

Other companies are still adding employees. Boeing, for example, is planning to hire 10,000 people this year, many of them in manufacturing and engineering. It will also cut around 2,000 corporate jobs, mostly in human resources and finance departments, through layoffs and attrition. The growth aims to help the aerospace giant ramp up output of new aircraft for a rebound in orders with large sales to airlines like United and Air India.

Airlines and aerospace companies were devastated early in the pandemic when travel dried up and are now playing catch-up. Airlines are still scrambling for pilots, a shortage that has limited capacity, while demand for experiences such as travel and dining has surged.

[csrcsr]

Layoffs are spreading – U.S.-based employers cut more than 100,000 jobs in January, according to a recent report. And, if you were just looking at the headlines, you might think it’s a dire landscape for job seekers. But amid all of that, employers ADDED 517,000 jobs last month, nearly three times what analysts had expected. So, good news: There are jobs to be had!

✅ Boeing is planning to hire 10,000 people this year – many in manufacturing and engineering
✅ Airlines are still scrambling for pilots and a lot of airports are hiring amid a rebound in travel
✅ Chipotle is planning to hire 15,000 workers
✅ A lot of other restaurants are also hiring, gearing up for a busy spring season
✅ Electricians, plumbers and heating-and-air conditioning companies have struggled to retain employees

 

[veerigadu]

High paying IT jobs peeki 10ngi restaurants lo waiters and cleaners ni appoint sesthunnaru….dheenyltlooo confusion em lee. It’s clear 

[csrcsr]

okadu lay off antadu okadu job market katti antadu okadu house market assam antadu okadu emo 6 momnths queue undi for new builders 

endi raa ee gollllaaaaaa are we absorbing too much information instead of doing work and studty ???

[csrcsr]

1 minute ago, veerigadu said:

High paying IT jobs peeki 10ngi restaurants lo waiters and cleaners ni appoint sesthunnaru….dheenyltlooo confusion em lee. It’s clear 

then who are those buying tjose houses by standing in line based on db posts Georgia, North cafrolona, dallas , Core bay every wehere houses are getting sold so no IT lay offs toooooo ? just genralizing because 90% of desis are IT

[Ravi860]

5 minutes ago, csrcsr said:

okadu lay off antadu okadu job market katti antadu okadu house market assam antadu okadu emo 6 momnths queue undi for new builders 

endi raa ee gollllaaaaaa are we absorbing too much information instead of doing work and studty ???

Atlane undi… weird situation we are in. Check new home mortgage applications graph though.. lowest dated back to 2007 anta 

[Ravi860]

3 minutes ago, csrcsr said:

then who are those buying tjose houses by standing in line based on db posts Georgia, North cafrolona, dallas , Core bay every wehere houses are getting sold so no IT lay offs toooooo ? just genralizing because 90% of desis are IT

Only desis bro.. lock kardo. Only desis got steel balls to buy now 

[coffee]

Hiring in industries like power, manufacturing, hospitals IT department, airlines , hospitality is resumed and market is good.. biotech, tech are doing terrible … as they hired more than they require during Covid..

real estate is damaal

[veerigadu]

4 minutes ago, csrcsr said:

then who are those buying tjose houses by standing in line based on db posts Georgia, North cafrolona, dallas , Core bay every wehere houses are getting sold so no IT lay offs toooooo ? just genralizing because 90% of desis are IT

Minimum wife and husband 100k each anna. Okati poyinaaa inkoti will pay the mortgage. Ayinnna alarming levels lo layoffs em levu. I agree with you.

[Manishican]

500k jobs added last month 

[Pavanonline]

8 hours ago, csrcsr said:

Record hiring. Mass layoffs. Trying to pin down today's job market is an exercise in frustration, all thanks to what JPMorgan Chief Global Strategist David Kelly calls a "legacy of weirdness" left by the pandemic. While tech firms have been cutting jobs, the service sector is still scrambling for workers. Experts' main worry is that layoffs, high interest rates and inflation could cause a ripple effect, eventually reducing hiring even in industries that have been adding workers, CNBC reports.

 

 

Covid’s ‘legacy of weirdness’: Layoffs spread, but some employers can’t hire fast enough

• Layoffs have recently expanded beyond tech giants like Microsoft and Amazon.
• Service industries such as hospitality and restaurants have been hiring to rebuild after the pandemic.
• The Fed has been closely watching job and wage growth as it seeks to tame inflation.

 

A sign for hire is posted on the window of a Chipotle restaurant in New York, April 29, 2022.

Shannon Stapleton | Reuters

Job cuts are rising at some of the biggest U.S. companies, but others are still scrambling to hire workers, the result of wild swings in consumer priorities since the Covid pandemic began three years ago.

Tech giants Meta, Amazon and Microsoft, along with companies ranging from Disney to Zoom, have announced job cuts over the past few weeks. In total, U.S.-based employers cut nearly 103,000 jobs in January, the most since September 2020, according to a report released earlier this month from outplacement firm Challenger, Gray & Christmas.

 

Meanwhile, employers added 517,000 jobs last month, nearly three times the number analysts expected. This points to a labor market that’s still tight, particularly in service sectors that were hit hard earlier in the pandemic, such as restaurants and hotels.

The dynamic is making it even harder to predict the path of the U.S. economy. Consumer spending has remained robust and surprised some economists, despite headwinds such as higher interest rates and persistent inflation.

All of it is part of the Covid pandemic’s “legacy of weirdness,” said David Kelly, global chief strategist at J.P. Morgan Asset Management.

The Bureau of Labor Statistics is scheduled to release its next nonfarm payroll on March 10.

Some analysts and economists warn that weakness in some sectors, strains on household budgets, a drawdown on savings and high interest rates could further fan out job weakness in other sectors, especially if wages don’t keep pace with inflation.

 

Wages for workers in the leisure and hospitality industry rose to $20.78 per hour in January from $19.42 a year earlier, according to the most recent data from the Bureau of Labor Statistics.

“There’s a difference between saying the labor market is tight and the labor market is strong,” Kelly said.

Many employers have faced challenges in attracting and retaining staff over the past few years, with challenges including workers’ child care needs and competing workplaces that might have better schedules and pay.

With interest rates rising and inflation staying elevated, consumers could pull back spending and spark job losses or reduce hiring needs in otherwise thriving sectors.

“When you lose a job you don’t just lose a job — there’s a multiplier effect,” said Aneta Markowska, chief economist at Jefferies.

That means while there might be trouble in some tech companies, that could translate to lower spending on business travel, or if job loss rises significantly, it could prompt households to pull back sharply on spending on services and other goods.

The big reset

Some of the recent layoffs have come from companies that beefed up staffing over the course of the pandemic, when remote work and e-commerce were more central to consumer and company spending.

Amazon last month announced 18,000 job cuts across the company. The Seattle-based company employed 1.54 million people at the end of last year, nearly double the number at the end of 2019, just before the pandemic, according to company filings.

Microsoft said it’s cutting 10,000 jobs, about 5% of its workforce. The software giant had 221,000 employees as of the end of June last year, up from 144,000 before the pandemic.

WATCH NOW

VIDEO08:24

Is the bubble bursting for tech workers?

 

Tech “used to be a grow-at-all-costs sector, and it’s maturing a little bit,” said Michael Gapen, head of U.S. economic research at Bank of America Global Research.

Other companies are still adding employees. Boeing, for example, is planning to hire 10,000 people this year, many of them in manufacturing and engineering. It will also cut around 2,000 corporate jobs, mostly in human resources and finance departments, through layoffs and attrition. The growth aims to help the aerospace giant ramp up output of new aircraft for a rebound in orders with large sales to airlines like United and Air India.

Airlines and aerospace companies were devastated early in the pandemic when travel dried up and are now playing catch-up. Airlines are still scrambling for pilots, a shortage that has limited capacity, while demand for experiences such as travel and dining has surged.

Indulo weird emi ledu, these are not recession layoffs. Just cut back of over hiring over last 2 years. Online shopping didn't stick after shutdowns being primary reason for tech layoffs, but most are pure tech companies. Recession is completely in fed hands now. CPI inko 2 months hot vasthe fed won't back down. Maybe one more quarter and we'll have a better picture. As long as war goes on, the risk will continue.

[hydusguy]

11 hours ago, csrcsr said:

then who are those buying tjose houses by standing in line based on db posts Georgia, North cafrolona, dallas , Core bay every wehere houses are getting sold so no IT lay offs toooooo ? just genralizing because 90% of desis are IT

simple solution.. is RTO

[hunkyfunky2]

12 hours ago, csrcsr said:

Layoffs are spreading – U.S.-based employers cut more than 100,000 jobs in January, according to a recent report. And, if you were just looking at the headlines, you might think it’s a dire landscape for job seekers. But amid all of that, employers ADDED 517,000 jobs last month, nearly three times what analysts had expected. So, good news: There are jobs to be had!

✅ Boeing is planning to hire 10,000 people this year – many in manufacturing and engineering
✅ Airlines are still scrambling for pilots and a lot of airports are hiring amid a rebound in travel
✅ Chipotle is planning to hire 15,000 workers
✅ A lot of other restaurants are also hiring, gearing up for a busy spring season
✅ Electricians, plumbers and heating-and-air conditioning companies have struggled to retain employees

 

Cuts in amazon and MSFT etc are all headlines grabbing media circus.... Amazon has 2 million workers, 18k is peanuts...

MSFT hired 75k just in 3 years ... So some cuts...

When you add 30% and layoff 5%, that's not a big deal. Twitter is full of Google amd twitter layoff stories , which is distortion of reality. They got months of compensation and most can get another job easily.

Majority of layoffs are in recruitment and HR - they know the cyclic nature of this occupation 

[csrcsr]

1 hour ago, hunkyfunky2 said:

Cuts in amazon and MSFT etc are all headlines grabbing media circus.... Amazon has 2 million workers, 18k is peanuts...

MSFT hired 75k just in 3 years ... So some cuts...

When you add 30% and layoff 5%, that's not a big deal. Twitter is full of Google amd twitter layoff stories , which is distortion of reality. They got months of compensation and most can get another job easily.

Majority of layoffs are in recruitment and HR - they know the cyclic nature of this occupation 

So antha baane undi antav ala anipinchadam lefu  ,somenthing kitiki kitiki is going on bro

[Telugodura456]

capitalism likes workers to be cheap and doing replacable jobs.

For a while it looked like IT workers with RSU options etc have challenged it.

but now capitalism is getting its revenge back.