With hiring expected to slow, we look at some ways you can shield yourself from a potential layoff.
Even as we kick off the new year, the horrors of the year past are not behind us. In 2023, major tech companies undertook big layoffs—in January last year, Google reduced its headcount by 6% (it also recently hinted at a fresh round of layoffs this year); in December 2023, Spotify laid off 17% of its staff and more companies gave out pink slips. This trend has been ongoing for a couple of years since the pandemic shook global markets.
Sadly, the forecast for 2024 continues to look bleak. Experts foresee greater unemployment, and it is going to get harder to find jobs as the job market becomes more competitive. Employers will be more selective and will have higher expectations.
Against this backdrop, we look at some hiring trends to expect this year:
Continued layoffs
As frustrating as it sounds, layoffs are unlikely to subside in 2024. A recent survey from ResumeBuilder.com noted that organizational restructures will continue from last year. In 2023, 65% of business leaders claimed that they implemented layoffs, with a staggering 25% reducing their workforce by nearly a third. The forecasts for 2024 paint a sobering picture, with 38% of business leaders anticipating even more layoffs and over 50% contemplating a hiring freeze.
The driving force behind these decisions is rooted in cost-cutting, with nearly 70% of employers citing financial caution, and about 40% reaffirming an employee’s worst fear (arguably, of course)—being replaced by artificial intelligence (AI).
Fewer pay raise opportunities
Good news: you might not lose your job this year. Bad news: you might not get any promotions or bonuses. The days of pandemic-era pay raises might be slipping through our fingers. During the pandemic, we saw the Great Resignation, which forced companies to accede to employee demands due to a shortage of staff. But now, the coin has flipped. With companies regaining the upper hand, employees might not be cashing in like they used to. As per the Economic Research Director at job platform Indeed, Nick Bunker, as quit rates decrease, companies are less compelled to compete for the existing labor force.
In line with that, Bunker notes a decline in wage growth, with October’s figures of 4.2% representing a decline from July’s 4.8% and significantly below the peak of 9.3% in January 2022. What’s more, a third of employers have reduced signing and holiday bonuses, while a fifth have cut benefits, and 12% have implemented salary cuts.
Hiring slow down
Nearly 40% of companies anticipate layoffs in 2024, and, as per a survey, over half of interviewed companies plan to enforce hiring freezes. Notable declines in job postings are witnessed in software, IT, finance, marketing and media—sectors that experienced layoffs and decreased investment due to higher interest rates and market volatility. Companies fear recession while relying on AI to replace human jobs. However, certain industries, including driving and healthcare, have shown resilience, with healthcare roles remaining in high demand.
The need for healthcare roles is expected to continue due to the growing elderly population and the expected increase in retirees in the coming years.
An antidote to the grim news: Tips to navigate layoffs
According to experts at LinkedIn and Glassdoor, here are some ways employees can cushion the blow of a possible layoff and even exempt themselves from it entirely.
- Look internally
The advice to look within is not exclusive to self-care. Even in jobs and careers, looking within your company can be a great hack to achieve growth and avoid getting laid off. Experts suggest that, instead of hiring externally, companies might prefer opening new roles to internal employees first. Exploring different roles in your company could be a strategic move to avoid layoffs.
- Switch to growing industries
Think about changing industries if your current one feels volatile. Your skills are like a Swiss Army knife—useful in various situations. Pro tip: Industries like healthcare, education and government tend to fare better during economic downturns.
- Explore small and medium companies
While big companies like Google and Amazon have been making headlines with mass layoffs, smaller and medium-sized companies don’t appear to be faring so poorly. They are often more flexible and can adapt better to changes in the market, making them a good consideration for you.
- Upgrade your skills
It might sound dull and repetitive, but boosting your skill set is crucial in an unpredictable job market. This isn’t just about finding a job; it’s about becoming someone companies cannot afford to lose. Keep learning and adapting to stay valuable. For instance, AI, like ChatGPT, is reshaping how work is done. Be open to these changes, stay updated on industry trends and adjust your skills accordingly. It’s not just about keeping up; it’s about being a leader in the evolving job landscape.
As 2024 unfolds, its narrative will be one of complexity and adaptation. The intersection of job cuts, the challenge of career progression and the widespread use of AI demands sharp strategic thinking from industry leaders and a thoughtful approach from the workforce as they navigate this unexplored terrain.
Also read:
- Which Employees Are the Most “At Risk” during Layoff Seasons?
- 6 CEOs Who Showed Compassion during Layoffs by Taking Pay Cuts
- 5 Tips To Get Back on Your Feet after a Layoff
Header Image by Unsplash
