JAKARTA - American technology companies dominated the number of layoffs announced in December, as some employers are downsizing their workforce to prepare for the prospects for a difficult future.
According to a recent layoff report from the labor company Challenger, Gray & Christmas, Inc, released on Thursday, December 5, US-based employers said they cut 43,651 jobs in the final month of 2022, down 43% from the number of layoffs announced in November.
According to the report, the pace of layoffs planned for December is far above the 19.052 cut announced in December 2021. For the entire year 2022, the report said there were 363.824 planned layoffs, up 13% from 2021.
Tech companies, which have faced rising challenges and weakened share prices, bear the burden of layoffs planned in December, with 16,193. The report says technology companies are leading the job reduction announced throughout 2022, with 97,171 planned layoffs. That's up 649% from 2021.
LAYOFFS occurred in economic conditions where overall work growth remained strong and unemployment, which hit 3.7% in November, was at a historically low rate.
Against that power, the Federal Reserve estimates unemployment will increase in 2023 as they continue to raise short-term interest rates to lower some of the highest inflationary pressures in decades. There is widespread-based fear that the path Fed is taking will send the economy into recession.
The overall economy is still creating jobs, although entrepreneurs appear to be actively planning a decline. Recruitment has slowed as the company takes a cautious approach into 2023, said Andrew Challenger, senior vice president at a labor company.
The government will report a December recruitment rate on Friday, December 6. Towards that date, there is mixed news on the job market. On Wednesday, December 4, Salesforce Inc. said it plans to cut its workforce by 10%, citing a slowing economy. But in a government report on Wednesday, job vacancies, something Fed has been closely monitoring, are shrinking lower than expected in November.
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