As the federal reserve continues to adjust interest rates to slow the economy, we see business community sectors on a roll of layoffs. In addition, banks that are the lifeblood of emerging digital innovation/ technology companies have failed (SVB, 1st Republic).
These dynamics have produced the first significant layoffs in tech since the 2001 dot com crash, and 91% of US CEOs are predicting a short to medium-term recession. Employee surveys that say 50% of all professional employees are considering leaving their jobs this year, up from 41% last year. 1 in 3 Gen Z employees would prefer to be full-time contractors over being an employee.
So, how can we make sense of these contrasting viewpoints? As our business equally serves our paying clients and talent, I always seek information that balances these perspectives. One can only explore these juxtapositions through the lens of post-pandemic recovery. Companies are adjusting to the global market dynamics (higher cost of money and slowing global demand).
Employees are continuing to adapt from the hardships of quarantine, remote work. The jobs market has been very robust and weighted to employees' needs, but that is also beginning to change.
As we all know, the work never goes away and this cycle will lean on all of us to be flexible and resilient. 52 is here to help you navigate this uncertainly. We look forward to hearing from you.
I have attached links to recent articles that have been helpful to my understanding of what the current market is, and I hope you find them valuable as well.