Healthcare job cuts rose in June––and the industry was among those with the most cuts across the economy, according to a report from global outplacement and business and executive coaching firm Challenger, Gray & Christmas.
Overall, U.S. employers reported 32,527 job cuts in June, representing a 58.8% rise from the same month in 2021, when 20,476 cuts were reported. Additionally, job cuts rose 57% from May (20,712) to June 2022. In fact, job cuts haven’t been so high since February 2021, when 34,531 cuts were announced. June also marked the second month in 2022 where job cuts rose over the previous month.
Healthcare/products manufacturers and providers announced the most job cuts this year with 19,390. That’s up 54% from the 12,620 announced through June 2021. Of 30 industries measured in the report, 10 reported more cuts in 2022 compared to last year. The automotive sector reported the most cuts of all industries during June, with 10,198, and 15,578 year to date.
The news comes as the U.S. has reported two consecutive quarters of negative gross domestic product (GDP), the hallmark of a recession.
“Employers are beginning to respond to financial pressures and slowing demand by cutting costs. While the labor market is still tight, that tightness may begin to ease in the next few months,” Andrew Challenger, senior vice president of Challenger, Gray & Christmas, said in a statement.
The report also comes after the firm found that healthcare CEOs have been partaking in the Great Resignation, moving positions and departing from their roles at a fast clip throughout 2022. In addition, healthcare and other industries have faced staff shortages and stretched resources exacerbated by the COVID-19 pandemic. Even in the face of cuts, companies still have to consider how to retain the staff they do have amid rapid workforce changes over the past few years.
“While many companies are still concerned about retaining workers, others may use return-to-office mandates or reduced flexibility to bring employee totals down through attrition since flexibility and remote work options are still very much what workers want,” Challenger said. “While this might achieve a cost-cutting goal, if employers aren’t strategic, they will almost certainly lose valuable talent in the process.”
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."