October 3, 2022

Precisely how Cooked Is The Official Careers Data: PwC Finds Over fifty percent Of US Companies Are Laying Off Workers

Nearly  three months ago, whenever tabulating real-time mass layoffs data… … Piper Sandler chief economist Nancy Lazar concluded that “ post-covid rightsizing means that lots more layoffs are coming” and added that “ many companies overhired and overpaid during the Covid crisis. ” Since then, it’ s only  gotten worse  for those who track corporate layoff announcements, such as the following: #1  Uatec  Inc. says […]#@@#@!!

Nearly  three months ago , whenever tabulating real-time mass layoffs data…

… Piper Sandler chief economist Nancy Lazar concluded that “ post-covid rightsizing means that lots more layoffs are coming” and added that “ several companies overhired and overpaid during the Covid crisis. ”

Since then, it’s only  gotten worse  for those who track business layoff announcements, such as the subsequent:

  • #1  Uatec   Inc. says that it will be laying off  more than 600 workers .
  • #2  Electric powered truck maker Rivian   will be laying off  approximately 840 workers .
  • #3  7-Eleven   has announced that it will be eliminating  880 corporate tasks .
  • #4  Shopify   is laying off  about 1, 000 people .
  • #5  Vimeo   says that it will be eliminating  6 percent   of its current labor force.
  • #6  Redfin  will be decreasing the size of its workforce by  8 percent .
  • #7  Compass  will be reducing the size of its workforce by  10 percent .
  • #8  RE/MAX   will be decreasing the size of its workforce by  17 percent .
  • #9  Robinhood   is going to be reducing the size of its workforce  by 23 percent .
  • #10   It is  being documented   that  Ford  “ can be preparing to cut as many as 6, 000 jobs in the coming weeks”.
  • #11  Geico   has closed every single one of their offices in the state associated with California, and that will result in  vast numbers of workers   losing their jobs.
  • #12 Walmart   is  eliminating about 200 corporate jobs   as it contends with rising costs, bloated inventories and weakening demand pertaining to general merchandise.

… and yet while initial unemployed claims have indeed shifted notably higher in recent months, the particular Bureau of Labor Stats stubbornly refuses to report the real state of the US labor market, where despite carried on softness in the Household Survey where no new job opportunities have been added since 03, the far more politicized Institution survey – which, in the end, is what the Biden management points toward as the just silver cloud in an or else recessionary and hyperinflating economic climate – has continued to demonstrate remarkable resilience and growth in recent months. So much so, that the gear between the Household and Business surveys has grown to a record 1 . 8 million tasks since March.

And while one possible explanation with this bizarre divergence is the  record surge within multiple jobholders  who else now hold both an initial and secondary full-time job…

… even as full and part-time job increases have slumped…

… the truth is that there is no extensive explanation for the variation within data. Which, needless to say,   is problematic  because the “ solid” jobs market is one of the very few things that is preventing the Fed from considerably easing back on its hawkish policies (now that will peak inflation has obviously been reached… if only for your time being), and the Fed’s sharply higher rates are already wreaking havoc on the housing business not to mention various stock industries that have also gotten walloped.

But what if the BLS data is not merely “ off” due to benign factors such as “ residual seasonality” or a post-covid hangover? What if it is deliberately manipulated to make Biden’s economy appear stronger than it really is for midterm election reasons even if it means distortions over the entire market?

We bring up all these rhetorical questions because a  new survey  released by consultancy PwC confirms our previous observations about rampant mass layoffs in the US labor market,   and suggests that the true condition of the job market is far, far uglier than the claimed 528K job gain reported by the BLS in July would suggest.  

In the PwC survey released last Thursday, which usually last month polled more than 700 US executives and board members across a variety of industries,   half of respondents said they’re decreasing headcount or plan to, plus 52% have implemented hiring freezes.   Simultaneously, more than four in 10 are rescinding job offers, and a similar amount are usually reducing or eliminating the particular sign-on bonuses that acquired become common to draw in talent in a tight employment market.

At the same time, although, about two-thirds of companies are boosting pay – for those who keep their job opportunities – or expanding “ mental-health benefits”, because we have now live in a liberal dystopia where a growing number of workers are batshit insane.

The findings, because even Bloomberg concludes, illustrate the contradictory nature of today’s labor market, where skilled workers can still largely name their terms amid talent shortages (in popular sectors like line cooks and bartenders), even as companies look to let people go elsewhere, particularly in hard-hit industries like technology and real estate.

“ Firms are playing criminal offense and defense with their skill strategies, ” said Bhushan Sethi, joint global head of PwC’s people plus organization practice, noting that employers have to weigh reputational damage and employee well-being when planning layoffs. “ People have long memories, and social networking plays a much bigger function now. ”

Of course , reputational damage will not matter if a company can be facing bankruptcy damage by having far too many workers and not sufficient cash flow.

A single big reason for the continuing crunch in the job market will be the treatment of “ work through home” – having be a staple during the Scamdemic thanks to overpaid charlatans such as Anthony Fauci, corporations are increasingly seeking a return to the “ old normal” which nevertheless is proving to be a significant challenge. As a result, the PwC survey found “ contradictions” in companies’ approaches to remote control work. While 70% of those surveyed said they’re expanding permanent remote-work options for roles that allow it, 61% said they’re requiring employees to be in the office or work site more often.

To be sure, some organizations could be doing both of those points at once: Roles that do not require much in-person collaboration could go remote for good, while other staffers could be needed to get back to their desks several times a week. September is shaping up to be a line in the sand for many companies’ return-to-office plans, even though previous so-called RTO deadlines came plus went.

Something is certain: the coming work shock will have dire and wide-raning consequences on the wider office market: with fewer employees in offices, agencies don’t need as many far-flung locations. As such,   more than one in five respondents told PwC that they plan to decrease their investment within real estate,   which makes it the most common area of cutbacks, plus yes, fewer employees.

As for the divergence between the rosy official government work “ data” and the dreadful jobs picture painted by mass-terminating corporations on the ground, we have been confident that the delta between two data sets can promptly and magically solve itself… right after the midterm elections.

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