A new report highlights the troublesome trend of companies cutting costs by laying off workers, revealing that job cuts are up 287% since May of last year.
According to the report, healthcare—an industry known for offering professional stability on many fronts—is not immune to the far-reaching effects of rising costs and inflation. Healthcare companies, including manufacturers that produce health products, announced a total of 33,085 layoffs in the first five months of 2023. This is up from the 18,301 job cuts that took place during the same period in 2022—an 81% increase overall.
The report was shared June 1 by global outplacement and business and executive coaching firm Challenger, Gray & Christmas Inc. The report’s data indicate that, outside of 2020, this is the largest amount of job cuts the U.S. has witnessed during the first five months of any year since 2009. So far this year, companies have announced 417,500 layoffs; in comparison, during the same period in 2022, that figure was 100,694, representing a 315% increase.
Andrew Challenger, labor expert and senior vice president of Challenger, Gray & Christmas, offered his insight pertaining to what’s behind the temperamental job market.
“Consumer confidence is down to a six-month low and job openings are flattening,” Challenger said. “Companies appear to be putting the brakes on hiring in anticipation of a slowdown.”
Outside of education, government, industrial manufacturing and utilities, every industry has been affected by layoffs, according to the report. However, the technology sector appears to have been impacted the most, with the industry weathering 136,831 layoffs between January and May of this year. This represents a 2,939% increase from the 4,503 cuts announced in the same period last year.
Retailers, financial firms and healthcare/products followed the technology sector, as did the media industry, which saw its highest year-to-date cuts since 2001 (when excluding the same time in 2020).
In terms of hiring new talent, so far this year companies have announced plans to hire 101,833 positions, which is down by 83% compared to May of 2022.
Find more from the report here.
In addition to her background in journalism, Hannah also has patient-facing experience in clinical settings, having spent more than 12 years working as a registered rad tech. She joined Innovate Healthcare in 2021 and has since put her unique expertise to use in her editorial role with Health Imaging.