Shulou(Shulou.com)11/24 Report--

On the morning of February 21, Beijing time, it is reported that the number of layoffs in some large US companies is increasing, while others are competing to recruit staff. this is the result of wild fluctuations in consumer priorities over the past three years of the epidemic.

Tech giants including Meta, Amazon and Microsoft, as well as companies such as Disney and Zoom, have announced layoffs in the past few weeks. Us-based companies cut nearly 103000 jobs in January, the biggest layoff since September 2020, according to a report released earlier this month by recruitment firm Challenger, Gray & Christmas.

Meanwhile, other employers added 517000 jobs last month, almost three times as many as analysts had expected. This indicates that the labour market remains tight, especially in service industries, such as restaurants and hotels, that were hit hard in the early stages of the pandemic.

This situation makes it more difficult to predict the path of the US economy. Despite headwinds such as higher interest rates and persistent inflation, consumer spending remains strong, which surprised some economists.

David Kelly, chief global strategist at Morgan Asset Management, says all of this is part of the "weird hangover" of the pandemic.

The Bureau of Labor Statistics is scheduled to release the next non-farm payrolls on March 3.

Some analysts and economists warn that weakness in some sectors, tight household budgets, reduced savings and high interest rates could further expand employment weakness in other sectors, especially if wages fail to keep pace with inflation.

The latest figures from the Bureau of Labor Statistics show that wages for workers in the leisure and hotel industry rose to $20.78 an hour in January from $19.42 a year earlier. "there is a difference between a tight labor market and a strong labor market," Kelly said. "

Over the past few years, many employers have faced challenges in attracting and retaining employees, including the childcare needs of workers and the possibility of finding other jobs with better schedules and pay.

As interest rates rise and inflation continues to rise, consumers are likely to cut back on spending and lead to job losses or reduce demand for jobs in other booming industries.

"when you lose a job, you lose not just a job, but also a multiplier effect," says Aneta Anetta Markowska, chief economist at Jefferies.

This means that while some technology companies may have problems, this could translate into a reduction in business travel spending, or if unemployment rises sharply, it could prompt households to cut back on services and other goods.

Some of the recent layoffs have come from companies that strengthened staffing during the pandemic. Telecommuting and e-commerce are more important to consumers and companies during the epidemic.

Amazon announced last month that it would cut 18000 jobs across the company. According to a document released by the company, the Seattle-based company employed 1.54 million people at the end of last year, almost double the number at the end of 2019 (before the pandemic began).

Microsoft also said it would cut 10, 000 jobs, or about 5% of its workforce. As of the end of June last year, the software giant had 221000 employees, compared with 144000 before the outbreak began.

Michael Michael Gapen, head of US economic research at BofA Global Research, said the technology industry "used to be an industry that developed at all costs, and it is maturing a little bit".

Although technology companies are laying off staff, other companies are still adding staff. Boeing, for example, plans to hire 10,000 people this year, many of them in manufacturing and engineering jobs. The company will also cut about 2000 positions through layoffs and attrition, mainly in the human resources and finance departments. The aim of the increase in staff is to help the aviation giant boost production of new aircraft in response to a rebound in orders and sell large quantities of aircraft to airlines such as United and Air India.

Airlines and aerospace companies, which were hit by travel disruptions early in the epidemic, are now catching up with previously lost business. Airlines are still vying for pilots, where shortages limit capacity and consumer demand for services such as travel and catering is surging.

Chipotle plans to hire 15000 workers as it prepares for a busier spring season and supports its expansion plan.

Retain employees other companies, large and small, also find that they have to raise wages to attract and retain workers. Industries that are not favored by consumers and other businesses, such as catering and aerospace, are rebuilding their workforce after layoffs. Wal-Mart said it would raise the minimum wage for store employees to $14 an hour to attract and retain workers.

Cassidy Smith (Cassidy Smith), general manager of the miners Hotel in Bout, Montana, says the company has raised its housekeeper's hourly wage by $1.50 to $12.50 in the past six weeks because of the high turnover rate.

As the tourism industry becomes hot again, airports and franchisees are scrambling to hire staff. Phoenix Tiangang International Airport holds job fairs every month and provides parenting scholarships for some staff to better carry out recruitment.

Austin-Bergstrom International Airport, which has increased the number of seats by 48% this quarter compared with the same period in 2019, has launched a series of measures, such as a $1000 referral bonus, in order to attract more staff. and provide signing and retention incentives to employees who are recommended to join.

The airport also increased the hourly salary of airport facility representatives from $16.47 in 2022 to $20.68 in 2023. Kevin Russell, deputy director of talent at the airport, said: "the cost of living in Austin is very high." He revealed that after the implementation of these measures, the airport staff retention rate ushered in an increase.

But some jobs have been difficult to keep, especially electricians, plumbers and heating and air conditioning technicians, because they can work elsewhere, where they do not have to work 24 hours a day, seven days a week, he said. and the pay is higher.

Even if it becomes easier to attract new employees, new workers in many companies need to be trained, which is a time-consuming factor for some industries. "recruitment is no longer a constraint and companies can hire the people they need," Dave Calhoun, Boeing's chief executive, said on an earnings call in January. "the key is to train and eventually prepare them for the complex tasks we require."

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