taking Deposed missed. But the chances of this happening to you may increase depending on what industry you work in. And despite the looming threat to an economynot all industries are affected to the same degree during an economic downturn.
While the tech industry has made headlines with omissions announced by several large companies recently, widespread layoffs have remained relatively scarce over the past six months.
But some industries are experiencing layoffs — nearly triple the rate compared to others. The arts, entertainment, and entertainment sector, in particular, had an average layoff rate of 3.1% from June to November, according to data from the Bureau of Labor Statistics. This adds up to an average of about 72,000 employees being laid off each month.
Other top sectors for layoffs include construction, professional and business services—which include jobs in accounting, engineering and computer services—and the information industry. That sector consists of those working in publishing, media, and telecommunications, as well as data processing.
Tech layoffs are very high profile, but jobs are spread across professional and business services as well as information sectors. And while industries have seen an increase in layoff rates recorded by the BLS, the spike has not been dramatic. “Part of this shallow increase may be because other non-tech companies are included in this sector and are doing better in the face of layoffs,” Nick Bunkereconomic research director for North America at Indeed Hiring Lab, said luck.
Many tech companies also typically provide several weeks of lead time and severance packages of up to six months. That means data around discharges can be delayed until after employees exit the payroll. So while we know about deletions, they may not yet show up in the data.
However, the number of layoffs is relatively low. “While the layoff rates in many of these industries are high compared to other industries during that time period, most of these rates are actually low compared to the years before the pandemic,” said Bunker, citing the construction industry as an example. Over the past six months, the average layoff rate in the construction sector was 1.8%, which is more than double the aggregate rate for the entire economy. But that’s lower than the 2.9% average layoff rate in 2019: 2.9%.
Yet workers should still consider the level of job stability associated with each industry when entering the job market for the first time or considering a career change, says Derek Gallimore, CEO and founder of Outsource Accelerator.
“While the difference between the percentages may at first seem small, we found that those in the arts, entertainment, and entertainment industries were actually 13 times more likely to be laid off than those in federal employment government,” added Gallimore.
So which industries tend to be more resilient, even in a recession or economic downturn? LinkedIn found that sectors such as utilities, education, consumer services, and even government jobs tend to be strong.
The data bears that out. Despite market volatility, high inflation, and economic difficulties in the second half of 2022, government employees saw the lowest rate of layoffs and layoffs.
Health care will also be a particularly strong sector this year as well, Bunker said. “Health care is a strong sector due in part to strong long-term demand for health services and already tight staffing in the field,” he said.
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