Big Tech’s Layoffs Have Little Impact on the Robust US Jobs Market

Twitter has laid off 75% of its staff since Elon Musk took over the company. Photo by Justin Sullivan/Getty Images

While massive layoffs continue to ravage the tech industry, with companies like Amazon, Meta, and Salesforce laying off tens of thousands of employees, employment data suggests that affected workers are leaving the rest of the economy. or are too few in number to change the status quo. A complete picture of the US labor market.

In December, US employers added 223,000 jobs, the Labor Department reported today (Jan. 6). The unemployment rate fell from the previous month to its pre-pandemic level of 3.5%, the lowest level in decades. The number of new jobs created in December was below the average for the previous month, but is in line with economists’ expectations and shows that the Fed’s monetary policy to keep inflation in check is working. is showing.

Health care, education and hospitality were among the sectors with the most job creation in December, while electronics, information services and government services declined, according to Labor Department data. Many tech companies have layoffs in progress or planned. As such, the December employment data may not fully reflect that impact.

Today’s report capped off a year of strong job creation. The US economy added a total of 4.5 million jobs in 2022. This is the second highest ever number of jobs after her 6.7 million job addition in 2021. Several companies that recently announced layoffs cited aggressive hiring in 2021 as the primary reason. Job cuts have hit hardest in support functions such as recruiting and customer service.

Plenty of jobs, not just high-paying tech jobs

It is becoming increasingly difficult for laid-off Big Tech workers to find work within the same industry. Team Blind, a verified social networking site for techies, posted in early December that an Amazon employee was interviewing for a job at DoorDash, but a few days later a food delivery company announced that the employee had been interviewed. 30% and laid off employees. interview process.

In a thread discussing which companies are still hiring, multiple users said that there are plenty of jobs out there, but for far less wages than the so-called FAANG companies (Facebook, Apple, Amazon, Netflix, Google). I pointed out that it is possible.

“All FAANGs are overhired. Others haven’t. There’s still an opportunity there. But they’re not paying much,” says medical device maker Stryker. Posted by a user who works at

Crowdsourced job listings for blind show companies that are actively hiring include JP Morgan Chase, Bank of America, Rivian and Bloomberg. In the technology department, some Microsoft and Google teams still have vacancies. So do fintech companies PayPal and Block (formerly Square). TikTok is also hiring, despite reports that parent company ByteDance recently laid off hundreds of people at its China headquarters.

John Thornhill, founder of Financial Times-backed business news site Sifted, writes: , in a Jan. 5 FT op-ed.

Layoffs at big tech companies have had little impact on a robust US job market

Leave a Reply

Your email address will not be published. Required fields are marked *