We keep hearing that jobs are plentiful and companies are begging to find workers. That's still true in many cases, but a growing number of companies are starting to slow their hiring, according to recent corporate announcements.
It's an abrupt turnaround from the headlines of just a few months ago.
Yahoo Finance says "Tech Companies Hitting the Brakes on Hiring," while Bloomberg says "Layoffs, Hiring Freezes are the tip of a Labor Market Slowdown." The reports say cracks are emerging in the hot labor market due to higher costs and consumer spending cutbacks.
Bloomberg said many tech and financial companies are freezing hiring, even laying off staffers. And it claims Apple is the latest to plan to slow hiring and spendingnext year (Apple would not comment).
Among others making announcements:
- Netflix;
- Tesla;
- JP Morgan Chase;
- Redfin, the realty firm;
- Coinbase, hurt by the digital currency downturn and;
- Meta, which owns Facebook.
And from the doesn't that stink file: what a hiring slowdown could mean.
Bloomberg claims the labor market is deteriorating, saying the unemployment rate possibly could rise from the current 3.6% to 4-5% next year. The good news: Many companies are still desperate to find workers, but many of those jobs are in service industries like restaurants and retail.
So we are not seeing recession-level job losses, but things are not as rosy as they were six months ago.
As always don't waste your money.
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