As interest rates rise and companies tighten their belts, white-collar workers have taken the brunt of layoffs and job cuts, breaking with the usual pattern leading into a downturn.
WSJ explains why many professionals are getting the pink slip first.
Illustration: Adele Morgan
#Layoffs #JobCuts #WSJ…(read more)
BREAKING: Recession News
LEARN MORE ABOUT: Bank Failures
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
The COVID-19 pandemic has caused a significant economic downturn that is being felt across different sectors. However, contrary to past recessions where low-skilled workers were the hardest hit, this time, the layoffs are hitting the white-collar workforce. As the Wall Street Journal reports, millions of professional workers are losing their jobs or experiencing reduced hours, as companies cut costs to stay afloat.
The pandemic has disrupted supply chains, reduced consumer demand, and led to the closure of many businesses around the world. This has forced companies to adopt various cost-cutting measures, including layoffs, to survive the economic downturn. However, unlike pandemics such as SARS, which only affected low wage and service workers, the COVID-19 pandemic has hit all sectors of the economy, including professional workers.
One of the sectors experiencing significant layoffs is the Information Technology (IT) industry. Many companies that depend on IT have been forced to re-organize and prioritize their projects, resulting in job cuts across different departments. Similarly, the energy and financial industries are feeling the impact of the pandemic, with many companies cutting back on their operations.
Furthermore, the pandemic has led to reduced hiring in various industries, leading to increased competition for the few available jobs. Many companies are delaying recruitment or putting a freeze on hiring activities to assess the overall impact of the pandemic on their operations.
The pandemic’s effects on white-collar workers are more far-reaching than just job losses. Many professionals have experienced reduced hours, with some firms reducing employee compensation to reduce costs. Others have been forced to take up a second job or gig work to supplement their incomes.
In conclusion, the COVID-19 pandemic has revealed that no profession is safe from economic recessions. The significant layoffs in the white-collar workforce have resulted in widespread job losses and reduced hours, leading to economic instability for millions of professional workers worldwide. While the pandemic continues to challenge global economies, it is crucial that companies and governments work together to minimize the impact on all sectors of the economy.
Most white collar workers are considered an expense (an overhead) unlike salespeople and factory workers who actually improve company’s profits.
Time to start an ONLYFANS account.
It’s not just white collar – that’s just the first sector to get hit recently. Companies like Intel aren’t ordering as much from my job which is a major semiconductor component supplier. We just laid off 1,200 people worldwide, many in blue collar fields working in the plants.
"professional workers"
entertainers are more valuable than they think.. mass hysteria just leaves everyone unable to do their jobs and to keep it at bay entertainers are needed.
I'm in complete awe at how I went from living an average life to making over 63k per month. It's amazing. The financial markets are full with opportunities, but I've learned a lot over the past few years to doubt that. The key is knowing where to focus. Well appreciated,
MARCIA ANN BICE .
Many entered the work force with confidence that doing a job well and working hard would guarantee a career until a safe retirement and maybe a pension. Many relied on financial institutions to stay solvent and good companies to flourish…what a cruel hoax.
Ugh that voice affectation is as tiresome as ubiquitous with the young'uns… shades of San Fernando valley!
Depends on your definition of Professional??
Real professions that require specific degrees and licenses aren’t impacted. Even if laid off, they can find a job within a week
I believe I should watch a video on "How to survive the current recession" given the state of things. Actually, it's a complete failure. The fact that some people could still earn more than $675k in a short period of time astounded me. If that's still the case, please explain how.
As recession fears mount on Wall Street and inflation remains well above the Fed's 2% target, some of the top commentators in markets, business, and economics have been sounding off on just how bad they think the next downturn might be — and how far stocks may have to fall. I need ideas and advice on what investments to make to set myself up for retirement, my goal is to have a portfolio of at least $850k at the age of 60.
When manufacturing was dismantled in Canada the focus was on bringing the employees in line with the new lowered standards not even long term survivability of the brands and products. Many of the firms that started the move to offshore in Canada no longer exist. But the institutional investors still exist, and even thought the buisness class that used to exist in Canada has been gutted along with the workers the institional investors have the climate they want. Low wage high degree of control.
talk to Jerome. It is all his fault.
Big investors are always the winners.
To all the liberals laid-off. Please don't cry, you voted for this.
College degrees are a dime a dozen these days … supply and demand
can anyone say whether or not the engineering jobs are being "cut" ??
glad im retired
new kitchen cart required
hard workers fired
Productive people will be rewarded. Non-productive zoom workers will not.
People saying it’s always been like this are incorrect. People entering the workforce in 2015, for example, had it much better. Capitalism operates on booms and busts that cause issues like this. The combination of Covid impacting education and the terrible job market for white collar workers makes it a uniquely awful time to graduate college. (I’ve applied to about 160 jobs at this point)
Blue collar workers are affordable and hard to find, nobody's pumping out babies anymore. Keep them just in case.
This is all part of the plan to reduce wages for the middle class.
That and the consolidation of companies by larger ones buying them up. I expect a boom of new companies because that's a ton of skilled white-collar labor available.
This is just the first wave. Automation will target blue collar jobs especially those in factories, transport and service industries.
Some companies over-hired or overpaid in the past few years(some tech workers could even juggle 4 jobs at the same time). I’m sure the government pressure to hire more had something to do with labor hoarding during the pandemic.
Now, with the interest rate hike and decrease in demand, these companies start to feel the pinch.
The government and companies should plan better to avoid over hiring and mass layoffs.
Well the reason why is rather obvious.
The government has enabled a handful of companies to grow to preposterous levels of influence in the economy by creating anti competition laws that destroy smaller businesses and startups (at the specific request of those big companies).
This has resulted in a wide swath of white collar jobs and smaller companies being absorbed by these mega corporations and when those corporations lay off people as is normal business practice, the end result is what you see now.
When a company that has 300 employee's lays off 5% of their employee base with a few downturn quarters, its not so bad, especially if there is competition the employees can migrate to.
When a single company says its laying of a percentage of its workers and 18,000 people lose their jobs… that says it got way too big for its own good and it now is SO influential in the market that the company itself, due to the lack of competition.. is almost a necessity to society itself for employment.
Um..like..the WSJ. Should um..have an adult read their videos
..um ..really…
V shape recovery means a V shape return to the mean