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A White-Collar Recession? Why Layoffs Are Hitting Professional Workers | WSJ
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- เผยแพร่เมื่อ 16 ส.ค. 2024
- White collar workers have taken the brunt of layoffs and job cuts as interest rates rise and companies like Amazon, Ford and PepsiCo tighten their belts. The job market is still strong, but job cuts and layoffs are starting to hit some industries in an unusual way.
WSJ explains why many professionals are getting the pink slip first and why this is different from past economic downturns.
Illustration: Adele Morgan
0:00 Some companies are starting big layoffs
0:37 White collar job cuts
3:32 How this is different from past economic downturns
4:47 Finding new work
News Explainers
Some days the high-speed news cycle can bring more questions than answers. WSJ’s news explainers break down the day's biggest stories into bite-size pieces to help you make sense of the news.
#Layoffs #JobCuts #WSJ
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I work in civil engineering and a bunch of my coworkers worked for developers in 2008. They talk about the early part of the great recession like an apocalypse where prospects for employment went from plentiful and high paying to non-existent in like a month and didn't come back for years. It's a good reminder that nothing is as secure as it looks. 🙃
Do you know that the effect of that recession lasted till today? Millions of professionals could not return to work because the landscape has changed. Business mindset was no more extravagant. The days of lavish lunches and attracting "top talents" did not exist anymore. Many professionals become homeless. The lucky ones became cab drivers and food sellers. They became the shadows of the present economy - doing jobs which they had never imagined they would be doing - till today. These were the "privileged". The rest of the casualties? No one talks about them. So, yes, one must always be conscious that a temporary uplifting moment does not define one's life. The lessons learnt for that generation are: 1. ALWAYS live within one's means. 2. Do NOT incur huge liabilities 3. What appears on papers as ASSETs are actually liabilities if they are still under mortgage. 4. Be humble. You never know whom you will have to turn to for help one day!
@@thesavvyartist 💯👍🏾
So glad I am also in this industry 🙃
That is why a years worth of emergency funds needs to be put into savings.
I'm also a civil engineer, and have heard stories from 2008 where structural engineers were taking traffic counts because that was all the work they had coming down the pipeline. However, this time through, civil engineering in transportation is a lot safer right now. There is a LOT of money being pumped into our industry for design and construction. Before this big money push, every company around was in need of civil engineers to accomplish the work that there was money for. Now, as an industry as a whole, there really isn't enough engineers.
If someone can pass the math classes, civil engineering is looking real great. Plus, very few civil engineering jobs actually use all the math. Most only use algebra 2 in their work.
The economy needs a serious recalibration. The ratio between the cost of everything vs. how much people are getting paid and expected to do at work is the worst it's been in a long time.
i mean thats what its doing right now. You can't keep having growth for 3 decades without coming down.
It has to naturally fail, the problem I feel is there lots of new winners and new losers if the economy fails
@@omgitsmario7let’s be winners brother
Actually us economy had systematic advantage over rest of the world. As economy is loosing that we are seeing infighting.
I don't think a recession can reset that. The rich are still insanely rich with their wealth well protected.
Inflation is far more harmful to individuals than a collapsing stock or property market because it directly affects people's cost of living, which they immediately feel. It is not surprising that the current market sentiment is extremely pessimistic. In today's economy, assistance is critical if we are to survive.
If you lack market knowledge, your best bet is to seek advice or support from a consultant or investing coach. Contacting a consultant may sound simple, but it's how I've managed to stay afloat in the market and increase my portfolio to roughly 65% since January. It is, in my opinion, the best way to get started in the industry right now.
@@hushbash2989 ELEANOR ANNETTE ECKHAUS is my consultant; I met her while watching a CNBC interview and later contacted her. She has since given me entry and exit points for the securities in which I am interested. You can look her up online if you require care supervision. I basically follow her trading pattern and have not been let down...
Thank you for this tip Bset. it was easy to find Eleanor Annette your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.
I disagree. Inflation is market normalisation from financially set prices, to the real economy. As most of the american economy is debt powered, a loss of trust in us bonds should be no surprise.
We are faced with fresh issues every day. It now serves as the norm. We initially mistook it for a crisis, but now we recognize it as a new normal to which we must adjust. What actions may we take to increase income during the quantitative adjustment since 2023 will be a year of tremendous economic suffering for the whole country? I can't allow my $800k in savings to disappear after all my hard work.
I believe there are many ways in which the value of the U.S. dollar affects investing, but having a strong portfolio advisor to explore and experience a really varied market has never made understanding how to grow your money easier.
Utilizing a portfolio advisor when investing is, in my opinion, fantastic. I was really suffering financial nightmares before speaking with a certified portfolio advisor, right before the pandemic crash in March 2020. In conclusion, I have so far increased my initial $460k investment to over two million dollars with the help of my advisor.
@@danieljackson87 Would you mind providing me with the name and contact information for the consultant who assists you with your investment?
@@andrewlogan7737 The investment advisor who manages my accounts, Julie Anne Hoover, is simple to identify online.
We, American Descendants of Slavery, have suffered sustained #EconomicTerrorism. Welcome to our mfing world.
If candidates and public policies were chosen from a bottom caste group up agenda and advocacy, we'd have prosperity and peace. #Vanguards of socioeconomic injustice
Funny how the WSJ never speculates the reasons for layoffs. It’s simply assumed that companies over-hired during COVID. While that’s plausible, it doesn’t make much sense. Companies across many industries are generating near record profits. Much of their capital is being spent through shareholder buybacks. Maybe…just maybe the layoffs are simply a strategic tool to appease institutional investors, and it has nothing to do w/ actual headcount. As someone who worked in F500 finance mgt consultant, I can tell you mass layoffs at large firms are rarely due to dead weight.
T G: Finally!! Stellar post!! 100% accurate!
yet all of this “profit” is coming from credit because people aren’t making more in comparison to rising prices. so where’s the money coming from?
Why do investors want layoffs?
@@rd3914 efficiency, probably. Whenever you have fewer workers than you need, resources and time get used productively. The long term cost is a lack of innovation and expansion. So ideally you hire lots, lay off lots, and basically throw the flexibility burden off your own shoulders and on to the bottom tiers. Whether thats low paid workers or your actual customers depends on the type of business you run. Right now, no one is sure what is going to happen globally, so every investor is keen on low risk, low innovation, until the percieved storm passes. Whether there is one or not.
@@rd3914 they actually don’t-but they don’t particularly care either. What they do care about is their share prices going up. Management want the share price to go up too so the investors will reward them with bonuses. Mass lay offs just make for a quick way to fatten the bottom line so the company looks profitable on the outward face and the share prices keep going up.
I graduated in mid 2020 at the height of covid, joining Exxon for my first job. Soon after there was a massive layoff due to the oil price collapse. I left willingly because I didn't see a future in the industry.
Now I work at Amazon, and there is yet another round of layoffs. I guess the silver lining is that I wasn't personally affected by either, but it really drove the point home that job security is never something to be expected. I keep my CV updated every other month and I chat with recruiters often even when I don't plan to make a switch.
What do you chat about to recruiters when you're not specifically looking for a job? Just wondering because I want to start doing this but I don't know what to chat about
it’s all so exhausting for me…
Do you feel dumb? Because oil stock basically boomed after that
@@joaquin67 you act like you’re interested in their job posting so should you get laid off you always have something in the works for an easy transition
Did you know that PBS FRONTLINE did a in depth investigation on its Co2 emission denial that it knew the burning of oil would overheat planet earth and never informed the public?
I've been working in Banking and IT for roughly 30 years and never been impacted by layoffs. I wish I could tell you the big secret behind that but I'm afraid it's mostly "dumb luck".
Having an in demand skill set that makes you hard to replace is basically what it is.
Same here. Which doesn’t make any easier when a new round comes around.
@@snowycatinseattle same way some people keep an expensive insurance or cell phone service and not change. Very reliable good service, and they don't want to be bothered finding a replacement :lol:.
The secret is be better than the rest and you'll always be last to be let go of.
@alb12345672 which accually should be the norm you SHOULD want to be comfortable but sadly this volatile economy won't let you.
Its not a labor shortage. Its employers not offering enough to get anyone to work for them, and irritating electronic paperwork, and unreasonable employee screening practices.
I have a small construction company and start new guys off at 20/hr and in 3 months if you show up, not drunk, and have a half a brain ill give you 25(no experience) and guess what…. Drunk, stupid or lazy is whats out there. You have to be worth the money for someone to hire you
Both of you are right.
@@jasonhutchins9239 People who show up on time, aren't stoned / hung over, have no felonies / DUI's, and have reliable transportation are making more money elsewhere.
@@jasonhutchins9239 $20/hr doesn’t get you very far these days… the people you want are doing their own side gigs or working full time elsewhere for more pay.
@@ROVA00 not to mention the back breaking work required to do construction.
As a new graduate, I've found it really hard to find a job because the companies I applied to replaced the entry-level openings with senior-level ones, so that they can recruit a worker laid off by another company. So the layoffs do affect the workerforce pretty significantly, maybe just not the workerforce you're paying attention to
Automation will make your job nonexistent in the future.
Their entry level positions are insulting
@@maxpro751Meh. Depends vastly on what type of industry.
@@maxpro751 That's why you get a job fixing automation.
Welcome to the way it always was, kid. None of this is new.
Honestly, is there a safe place anywhere? As a 30 yo woman, I spent my entire 20s trying to climb out of every sinking ship possible. Went through the layoffs, trying to pivot into different roles, accumulated debt, and settled for low-wage jobs which scammed me out of money. I have a healthcare admin degree, started a job in that field but was made redudant right before the pandemic due to no fault of my own. It's like every time I get started in a new role, the layoffs start in the field. I started in tech/business, laid off. Went to health care, laid off. It seems the layoffs happen right before I gain any solid experience. And we all know that jobs these days will not hire you without a lifetime's worth of experience. What is a 'safe' career anymore? How do people like me gain experience when the boat is constantly sinking?
I did not have an exuberant financial support system like some of my peers. I had to pay for my college, strict parents prevented me from forming outside relationships, no time for a spouse due to the aforementioned). I know it sounds like I'm making excuses, but this is my reality atm. It sucks feeling like my fate will be POOR when I am just trying to fit into this society. I was very ambitious at one point but now it's a struggle to stay motivated with all of the uncertainty. Why is this legal or fair to play with peoples' livelihoods? Can we at least get a feeling of stability somewhere? And most importantly, where is the outrage outside of the internet? Starting to feel like I'm the only person going through this.
I’m right there with you. I’m trying to find a job and it’s taking forever. I live in the middle of silicon valley and I can’t move anywhere because I have no money and live at home. The cost of living here is ridiculous and trying to land a job seems almost impossible.
Figure the best balance between what you are good at, what you like and what society needs and then look for a job doing that, move if necessary to get started, find where you can fit in this economy, not your fault, we can't control the economy, just try to position ourselves
I'm disabled with a mild form of non-visible spinabifida but my GP told the welfare office l was capable of work. This led to me being evicted from my home because l couldn't find an employer taking on wheelchair users. They almost literally put me on the street in my wheelchair but l managed to locate a welfare office to get the decision reversed in time and keep my home. In England we have nearly six million "economically inactive". I think they would be mostly honest hard-working people like yourself who have given up the idea of steady employment. A few years ago the 'zero hours contract' was introduced where an employer uses an employee only if he has any work for him on that day. No sick pay, holiday pay etc. For many a steady job is a thing of the past.
Don't feel alone, we are with you. Not the same experience but similar
I sympathize. What you need is a job in demand that is nothing but grunt work. As the last person hired in you're also the first to get fired when the economy goes down. You have the least value to any company because you are not trained enough in the company process to be useful and don't have enough outside experience to find a job somewhere in the same role. (I have been there.) My only advice is find a regular job and try to cultivate some of your associated business skills before you get too far behind in the field. A few of my friends bounced back from the 2003-2011 tech bubble but some never bothered to keep their systems knowledge up to date so they are basically stuck in blue collar work that's breaking their bodies. Failure to keep up with the times has basically made them obsolete.
A lot of these jobs are just people sending emails, creating spreadsheets, and sitting on conference calls. They are not really productive
A lot of managers with made up titles are sweating
about time
At 32, I’ve pivoted into trade work.
Seems much more secure. I’m still allowed overtime while simultaneously our office crew is being mandated to take 5 days off in Q1 of 2023 due to the lack of work. Not saying they won’t eventually cut overtime, or that trade jobs are exempt from being cut, but it certainly feels much more secure, and something I can take with me in any state if I did get cut, or decided to move.
Denver, CO
I believe you're right, I've been thinking about doing the same.
The 2008 recession killed trade work for a good few years, only really started to recover and get back to what it was after 2016, so that could all change.
@@nunya7764 That's true, thanks.
As a journeyman machinist in the energy sector I have never been out of work, even during covid. I make 100k+ a year which is comparatively high to the average paper pusher, I am able to feel accomplishment within the art of my trade and feelings of pride. I have a nice house multiple cars healthy lifestyle and all done with hardwork integrity and percerveirance. As a manager I felt overwhelmed under appreciated and highly stressed, I left my position as quality assurance manager and am back to writing proving and setting up glorious cnc productions. Glorious!
@@og_ludachris5611 I tried to get an entry level machinist job, when the guy saw I had BA, he said don't call back, fact.
My perspective living in Silicon Valley is that “skilled” workers are a dime a dozen but it’s nearly impossible to find “unskilled” workers (laborers). Too many engineers, not enough everyone else.
Matt, change the zoning laws and this problem would melt away.
There isn’t a shortage of either . There was an over hiring due to boost in economy. No one wanted the lower paying jobs so they got the education to get the higher paying . The biggest problem especially in Silicon Valley is the extreme wage gap . If you want to have what you call “ unskilled - labor “ type then there needs to be a livable wage . 99% of all tech workers are grossly over paid due to the extreme company evaluations. These evaluations will be checked this year 2023 , most employees will find themselves working at a reduced wage or without employment. Blue collar will find a boost due to the fact that in order to stimulate economy zombie corps will have to die freeing up space for companies that can actually make a profit . Hardest part will be finding blue collar workers to fulfill the demand . When this happens there will be blue collar pay increases thinking out the wage gap and bringing more sustainability to the area . If this doesn’t happen then you will see complete deviation across all wage classes . Crime will skyrocket and home values will reach 2011 levels once more . The state of California is in a sever labor crisis not only for numbers but for quality. Once you lose the foundation class everything falls .
@@user-xm8rf6ik7b Those high company valuations were the result of the FEDs easy money policy it was pursuing for over a decade with QE and 0% interest rates. Now that the FED is on a tightening campaign and is raising rates it pricked the bubble and the dominos are starting to fall, however, the worst is yet to come...
@@user-xm8rf6ik7b I totally disagree; the problem with California is the lack of affordable housing and that is due to zoning restrictions. With proper zoning, norma people could afford to live in the Silicon Valley.
I full agree
I've always wondered why large companies have so many middle managers. It makes sense but at the same time, it's extremely inefficient. I've been lucky that over 20 years in tech sales has prepared me to pay off debt quick and save money despite making over six figures. With the skills many of these workers have, they will be hired again soon.
Good people don't need to be managed. That just means they have hired the wrong people.
@@peternorthrup6274 I agree but as a business gets larger it's unefficient. Most managers have work experience. I just don't see the need for 4 middle managers between the actual workers and top level executives
@H2s that's what I think also. Kaiser laid off many administrative positions that were over 6 figures. I think newer apps did it.
With work from home a lot of companies have seen that their Taskmasters and Checkboxers (from David Graber’s BS Jobs) aren’t needed. I expect a lot of aging unskilled middle managers are among those layoffs.
@@larrysmith2655 Depends on company size. The amount of management layers should be expected to scale logarithmically with the amount of employees.
You can't have a team manager managing 1000 people. For a company as big as amazon or google it shouldn't be surprising why they have so many layers.
I mean those days are gone when people used to work 30 years for the same company. Keep your resume updated.
I think the average now is 2-3 years at a job before moving on (of course there are many different factors that can skew the numbers, like the worker’s age, pay, work environment, commute, benefits, etc.). The longest I’ve ever stayed at a job (so far) was 5 years. Then they laid me off :/ But yeah, those days of “work 30 years for the same company and get a watch at your retirement party” have been gone for, I’m guessing ~40 years?
Companies need to bring this standard back so people can stay at 1 company without worrying about getting fired or laid off.
This exacerbates the problem with medical care in this country
I've worked for my company for 13 years and am extremely well paid
Remember people it’s a WAGE issue NOT a LABOR issue. Fight for higher pay!
Right as these companies post record profits
We all know there was a huge spike in hiring from a lot of tech companies in 2020 due to the pandemic and people staying and shopping online and doing video meetings and blah blah. So many of these companies layoffs still see an increase over the number of employees they had in early 2020.
online retail is not tech
@@chavruta2000 But the companies making the software, servers, cloud services, apps, etc that support the online retail are tech companies. That is what the OP is referring to. Those are the companies that saw a boom in hiring during the pandemic.
Ding ding ding! This is what I been preaching.
@@eudofia we just want to be careful what we call a tech company and the tech labor force. google is a tech company, not a communications company. amazon is both a retailer and a tech company. all companies have tech workers. some tech companies have few tech workers and more salesmen. these categories are sloppy. the devil is in the details
also lets stop listing 'cloud' as a separate item. clouds are just server clusters. its called the cloud only because its a myaterious black box non technical people dont have to bother to understand. but its just hardware and software and it crashes and blah blah
If a company can fire thousands of employees? You've got to ask yourself. What were they all doing in the first place? They are let go and it doesn't effect anything but the bottom line. Makes a person wonder? Sounds like alot of dead weight.
This really is mostly a tech sector thing so far. Ford and Pepsi are not enough to prove a trend in other sectors.
Do you remember when Pepsi Man came to save the day?
th-cam.com/video/CXRa9XD6Ygc/w-d-xo.html
the 'tech sector' employment numbers are very inaccurate.
The tech sector had this happen the most but they aren't just using Ford and Pepsi to solidify the trend in other industries if you look at some of their graphs
@@mikethedriver5673 There is no 'tech sector'. Tech people work in every sector. Every sector uses tech. It's a stupid designation and meaningless category as far as employment goes. Innovation is also not 'tech'
Define white collar. Nobody can still find enough accountants and that job still has to get done, recession or no.
Accountancy is, primarily, a task that a computer can achieve. It’s only the high level corporate sector that’ll survive, providing governments don’t realise tax avoidance isn’t a vote winner so they crack down on it significantly reducing opportunities, at which point, it’s easily turned to an AI system solution.
@@brynleytalbot778 here comes the “all accounting will be automated! Crypto doesn’t need accounting!” Guy. Ya ya, I work in accounting automation. There will be of accountants on excel for plenty more decades.
@@TheRidersChoice exactly. I'm an accountant and earlier in my career I was worried but that statement. Then as I got older I realized at the end of the day somebody still have to input the data, analyze the numbers, present the figures to management for decisions to be made etc etc.
You could even go more granular, but for a 5 min video there really isn't a point. For instance, tech is mentioned in the video but it's such a broad industry. Social Media/Advertising and eCommerce are slowing, but areas like Cloud are growing rapidly.
This was happening before but not at this rate companies are not eliminating jobs they are just shipping the jobs overseas !
Globalization , automation and greed has been the death sentence of the American dream
Because HR and sales departments that don't sell are further away from the profits than the people who make the physical product being sold. They should always be the first layoffs never the 2nd wave or last.
HR is incredibly in demand and probably always will be. It's a hard, thankless job. Sales on the other hand will be part of those layoffs especially if corporate earnings dip. Talent acquisition as well if there are far fewer people that need hiring.
My husband is a Master Trademen, we know that nothing is ever promised, but we have seen that through 2 recessions, and a pandemic he has stayed gainfully employed.
I had the same type of job. We went through 4 plant closings. We had to move to 4 different states over the years because of my field. In 39 years I was never out of work. Each time the new company paid all moving expenses. I retired at 55. In 09 I received $500.00 per week for unemployment. 99 weeks I could not believe my luck. I took every bit of the time off. During that time I was asked to consult on a project. It paid $135,000.00. Every penny was under the table. It was fun. Then I had to go back and get a real job for a few more years to get to 55. It was always the plan. People at craftsman level will always work. You should be proud of your husband. Office workers are a dime a dozen. Almost 300 000 tech workers so far have been fired. Makes a person wonder what they did all day? Have fun.
Americans as a condition of receiving their severance working proudly together training their Indian H1b replacements to improve corporate profits by exporting jobs to India.
Globalization , automation and greed has been the death sentence of the American dream
H1Bs work in US not in India. Genius 😂
@@realnapster1522 Not always.
Shipping jobs to India & China needs to a federal crime.
Improvements in management software systems are reducing labor hours required for various administrative functions as well.
agree...also blockchain and automation systems will reduce the number of compliance / managers needed
causing bloat for more skilled employees, reducing productivity for them
One change I noticed in my household that might be permanent is cooking at home. Never have we gone a whole week without dining out maybe 2 or 3X a week. Now we can go 2 weeks without eating out. I never realized how much I enjoyed cooking at home. 😁
0:50 white Patagonia vested workers. Nailed it…. Sry finance frat bros 😂
I work in the healthcare industry so it’s not as black and white when it comes to layoffs but in the end of the day I’m not surprised by this news especially in the tech industry.
The difference now is that there is a STILL a shortage of law wage...retail, light industrial assembly etc...workers
Almost like people don't want to slave away for pay that doesn't cover basic livings costs....at least leave us some scrap meat on the bones you throw us
Every video put out by these Corporate media companies feels like they are lying.
Because they are.
@@kaymish6178 they aren't lying. they just don't know what they are talking about.
I haven't been in corporate America long but it's impossible not to notice how top heavy it is. None of the small to medium businesses I worked for had "regional managers." That is definently a layer of fat that can be cut. Maybe they can be reassigned to doing something helpful but I don't think that would be in thier nature
Proud blue collar worker here. Hoping I'll be okay through the recession 🤞🏼👩🏭
I'm hoping they finally pay you guys what you're worth since there's a so-called "labor shorage" in blue collar. Even skilled blue-collar jobs are paying near fast-food wages now.
Hope so but it could affect everyone sadly yes it’s not blue collars yet but we don’t know
hispanics shouldn't panic
Me to. I retired at 55.
Me too. Just keep working. That is what has seen me through the recession and the pandemic.
My family and friends had some discouraging things to say to me when I went the "blue collar" route b/c I have to go to college part-time.... I think I made a decent decision💯
What blue collard job?
Blue collar babyyyyy
Pest control Industry is still booming here in Southern California, especially commercial sales. Still clearing $100k🙏🏼
How far does 100k go in Southern Cal? Probably still difficult to afford having a child and or a spouse.
@@LotusHart01 I do alright here and my wife makes decent pay as well. We try to live frugally and keep our costs low by not buying flashy things or keeping up with the joneses. However, you’re right about it being difficult raising a kid, yet alone multiple kids. That’s why we’re holding off on that and considering moving out of state for that very reason, to raise a family. $100k can get a single person far. But for only so long with the rising costs of, well, everything. $100k to support a spouse and a kid? Not ideal here in SoCal, especially if your house isn’t paid off or if you’re renting like we currently are.
What i hope is happening is this: companies are finally realizing they overhired useless, worthless middle management instead of hiring productive workers and increasing their wages.
Exactly lot's of worthless workers that I simply don't have pity of them getting fired or certain jobs on to why they even existed in the first place.
@@distordm_nx bunch of pencil pushers checking each other’s work 3 times pretending like it’s some valuable task🤣
Why you think the government is bring over immigrants? Lol they will have the workers buddy, it just won’t be the Americans, this is seriously going to be a crisis for Americans.
@@michaelvick2872 or better yet, moving numbers around on the internet and call it "adding value"
The corporate hierarchy structure that these global companies are married to requires middle management. They are likely slimming down specific corporate functions or scrapping projects/products and cutting everyone on the team, regardless of role.
Don’t think for a second that publicly traded companies will suddenly value their employees over shareholders. That pot of money saved from mass layoffs is not redistributed to current employees, though they may use a very small fraction of it to very modestly bribe employees who may now have a sudden increase in workload to stay.
It's cyclical. In a year or two when signs point to climbing out out of recession hopefully, the fed starts decreasing interest rates and make it cheaper to borrow money, watch the reverse happen again. Companies will borrow like crazy to fund new projects and start hiring people to get the work done. If you're unlucky you might lose your job every few years or so when this cycle happens
disagree , technology is not cyclical ... structural changes in remote work outsourcing and Automation / Blockchain will render alot of tech / middle management / compliance jobs obsolete
In 2008, I was part of a layoff, not because I was not needed but because I did not relate across the country to run a business. I was let go and was called in to pick up my severance check. Upon walking out and starting my car, I was getting a call. It was HR asking me to come back... it was stupid at the time but I get it now. I came back and have been moving up at lightning speed. I accredit that to always learning, having the skills that are in demand and most importantly my work ethic. Whether in the office or remote, I am one of those that higher ups know will get the job done. I have also learned that most of those around my circle that get laid off is due to them not trying to learn the skills that are in demand as well as the future and instead just happy with being where they are at. For me, I will continue to learn cause AI is coming and it is best to know it. Don't need to be an expert as long as I understand what it is and what it does as well as what can I make it do for me...😁
AI will eliminate your job.
@@virtual240 yup
i'm seeing job listings on linkedin with 1,000 applicants, 2,000 applicants, and came across one yesterday for the company Calm with over 3,000 applicants. it's bad, it's really bad.
Workers do not want to go back to low paid jobs.
These tech jobs have better pay and benefits then most jobs
If you can work over Zoom and Slack from Billings, MT, your employer can hire 3 people in Manila for the same price. These white collar layoffs are the beginning of a wave of knowledge-economy offshoring
Knowledge-economy offshoring? If you want I can explain how the informationsociety (cf. Castells) works to show why 'knowledge-economy offshoring' isn't really a thing.
Companies have been offshoring jobs since long before Zoom and Slack were a thing. So if your employer hasn't already sent your job to Manila then there's probably a good reason for that.
I suspect the future will be outsourcing customer services and other similar departments altogether. Of course it won’t work in the long term either.
I see White collar jobs that were performed in the US are off-shored or replaced by A.I. both. I also see processes and quality checks of the deliverable has suffered. This is the new normal.
I work for a German Contact and connector company that is celebrating its 100 year anniversary. In their entirety, they never had a layoff.
Why every comment is Amazons AM sth. TH-cam is really need fight these bots.
It’s probably a crypto scam
We’re retiring in a couple of years from the white collar field and front line field and very glad to go. The front line hasn’t been kind.
Alternate theory: Raising interest rates make capital more expensive. To compete for capital, companies are cutting staff down to skeleton crews to increase the returns on equity and cover increased debt cost.
as someone with a degree that now works in post office and started during pandemic. the grass is still dull here, job security with low pay, cant even afford rent and live with family. they started a two tier pay scale since 2013 that is grossly underpaying new employees compared to pre 2013
I wonder what role, if any, unionization plays in determining who gets laid off during recessions
If you are in a union and laid off many unions require the company to hire laid off union workers first before hiring anyone from the outside. Union workers are goid
if thats the case it is illegal
in the UAW(ford) they ask high seniority people to take buyouts over and around 30 years service. Anything under 28 years or so its the 2nd tier temps and lowest seniority to go. And if you are laid off (low seniority) you still get unemployment (26 weeks) and SUB pay(85% of pay combined) of up to the amount of seniority. For example you have 2 years seniority and layed off you will get unemployment for 26 weeks and SUB for 2 years in "the pool" till they call you back. They have to call you back before hiring other people off the street. and if they don't call you back after the 2 years then you are officially gone from the company.
1. They held on to staff that would have been laid off before due to the pandemic.
2. Technology has matured to a point where many things are plug and play. Workforce and many other work management software have decreased the need for staff.
4. Remote work is actually BAD. It now allows for white collar jobs to be outsourced regionally or internationally.
Great point of remote work . Could u please elaborate more on this ? Thx
I personally have a job because paying an American or a British a competitive wage is considered expensive, they pay me half what they would pay them and the quality is the same, the problem is this catches all of us, (I'm from poorer Europe) and people from India are starting to get jobs in the company, and at the moment the average Indian cannot get to the average level of an poor european but the Indian worker only costs a half of the European one, one day probably their quality will get better and us Europeans will be tossed aside.
And the same will happen to Indians if India gets rich in the future
Yeah remote working is definitely worsening job security for western workers
Then, the job that is most protected by these elements is NURSING. Machines cannot replicate the work of nurses because nursing involves human emotions like compassion, caring , nurture and kindness. Doctors can be replaced by robots but never nurses. We, as beside nurses, cannot even work remote. Whilst doctors can work remote and even have the technology to perform a surgery remotely, nurses just cannot provide care remote. There has to be human to human contact. Yet, in spite of these, nurses are an afterthought by the medical industry. We, ironically, are treated like robots and paid like one.
Maybe it's best working with something that involves American culture. Sports, law, government, sales, and marketing seem to be ones I can think of.
White collar workers are called professionals, while blue collar are called front line. The societal view of blue collar is a major contributor to people avoiding the jobs.
Explain
@@ethanbrian2022 Nobody tells you to go work with your hands. Learn a trade. It’s all about college and “professional” jobs. My reference was to the word choice of the article calling blue collar front line workers and white collar professional workers.
Explain then, how a physician with an MD and an RN with a BSN and MSN are front line workers and professionals. Because I consider myself both a professional and a frontline worker, working both with my hands AND I went to a lot of college.
@@Chasing-the-outdoors According to Investopedia, the definition of a white-collar worker is anyone who works behind a desk in a suit-and-tie environment. So technically speaking a call center customer service agent is a white-collar worker because they work behind a desk, a sales agent can be a white-collar worker, and the list goes on. Blue collar workers are defined as skilled and unskilled labor that involves manor labor.
White collar workers are not called professionals. Professionals are careers that require post graduate education. Doctors, lawyers, engineers, and architects are examples. White collar are just office workers for the most part. Bookeeper VS. CPA.
So glad I’m no longer on that rat wheel. Haven’t had a job since 30 October 2015. Retirement is a blast.
I was laid off from my escrow Officer job at a huge home builder. They laid off 30% of the company. I’m back to the trades.
They just laid off some white collar people yesterday at my company. Very unexpected.
Tiny amounts of layoffs like 1-5% in top 500. But 18k is still a ton of people.
I'm surprised they didn't mention the outsourcing of tech and accounting jobs to India. That's been the bulk of the white color layoffs pre-pandemic.
I'm sure you're right, but there's a limit.
This is just the beginning. Automation is finally hitting HR, Finance, and Marketing.
They already got the rest of us in the 90's. Welcome to the party.🥳
AI is going to exacerbate this trend, we're realizing that office work, creative work and design can be easily automated while jobs that interface with the real world (Trades, Truck Driver, Taxi Driver, Healthcare) are harder to automate than we initially thought.
They're also overwhelmingly useless.
@@ten_tego_teges you always seem to forget who created the AI .. so not that useless :), let's be real, in each area there are a lot of useless people but yeah we will always be inclined to see more on the other side.
@@cridr I work in AI, there are plenty of great things about it, but most people work is stuff like recommendation systems for ads, which is part of marketing. Marketing itself is a parasitic industry.
@@ten_tego_teges i mean isnt digital literally a giant algorithm using AI to better show a client's ads to the targeted group at a more efficient cost than traditional marketing.
@@Pfyzer Yeah, which is bad. The more efficient marketing is, the worse off we are. Marketing is about brainwashing people into consumption. It produces nothing of value, but every company is forced to use it, otherwise they lose. It's holding everyone hostage, while becoming a multi-billion dollar industry.
With white collar workers being the majority of layoffs, there will likely be a delay before these job cuts are factored into unemployment data. White collar layoffs tend to include large severance packages which can sustain someone for several months. Their layoffs won’t be counted until the severance runs out and they file for unemployment.
Most white collar workers are considered an expense (an overhead) unlike salespeople and factory workers who actually improve company’s profits.
No job is secure I think that’s what the pandemic taught everyone so everyone is learning how to make own decisions when it comes to jobs and careers
Because they are the biggest non functional liabilities in pay check distribution. The actual work is done by people at the bottom with meagre wages. The distribution is all off balance.
It is gone, we lived through the zenith of our time.The corrupt government will take down this country like what happened to Rome. My condolence for anyone approaching retirement you may have concerns over whether your pension pot will stretch to cover the rising costs of living. Bad energy policy, bad foreign policy, bad regulatory policy, and insane fiscal policy.
Good times cant last forever. Too many recent grads with 200k+ offers.
I watch a lot of economic TH-cam videos and there have been so many predictions of a recession and of unemployment spiking the last 2years or so that like I begin to question what am I gaining from these videos.
They keep repeating the same nonsense until it actually happens. My 2 cents is to save up as much as possible and get rid of debt and live a life of content, don't ever yield to materialistic pleasures!
Answer. Misery. The antidote? Buy a thing or experience to boost your happiness, momentarily. Or an education in how to gain success. Now, where’s that link for the: Amazon selling without stock, property route to a passive income, currency trading for a consistent return, personal development into a consistent income, etc. An education to give financial freedom to buy anything, material or experience, to have a new level of comparison to others misery, and constant pleasurable unhappiness. Are you getting the picture?
Me too
The only thing people should be gaining from this is to save a rainy day fund and not spend frivolously, or further themselves into debt. Tides can always change.
Who exactly is being laid off in the tech industry? The growth of tech over the last decade has attracted a lot of hangers on who have no qualifications or skills in the core engineering aspects of whatever company they latched onto, and in many cases actually get in the way of the people doing the real work in the coarse of trying to justify their salary. I suspect in a lot of cases it is these people who are now being pushed out.
it could affect everyone sadly yes it’s not blue collars yet but we don’t know
Bingo!
It is..... I remember visiting a few companies that were at the wework facilities in los angeles 😂 ... my ex gf worked for a tech company
Meanwhile, my strong blue collar jobs pays well and isnt going anywhere
Papa Powell needs to look at the jobs available and realize the employers don't want to pay a living wage. Those jobs will stay unfilled for a long time.
"The state of MA has temporarily banned the use of reusable bags", my question is why?
This is 2:41 in the video.
All those quiet quitting people are having their dreams become a reality
This is going to be the everything crash, and sadly lots of people will lose there jobs. Especially in Europa when I am from. I hope it will recover though
Working in tech has been fascinating since Covid. I’ve been through an acquisition and a layoff and 3 companies since the pandy… gotta stomach the inherent volatility to such a competitive high paying industry.
work in retail
It's almost like paper pushing HR managers and diversity cafeteria authenticity inspectors don't actually do anything worth paying for
And they called me crazy when I said too many people were getting collage degrees. Supply and demand people. Time to learn how to weld, not everyone can be a software engineer or pharmacist
I think the issue with college degrees is people normally go to uni too early in their lives without knowing what they like and how the world works.
So they end up with useless degrees.
But if people look for education at an older age... then things can get more interesting
@@_orodrigofernandes 100% plus the fact that most people study the same 20 degrees, making the scarcity of the profession something of the past. My dad made a pretty good career in HR, at the time not many people had a Masters degree in HR. Ironically enough, I used to work with a girl at The Olive Garden, that had that exact same education. Not to mention too many people get in debt to study an overcrowded profession, wich comes back to your poit, too early in their lives, and honestly, too much propaganda from family members that did grate in the 80s and 90s with their fancy associate and bachelors degrees, at a time when anyone who knew how to use excel was making 100k of 90s value money.
Pay is often terrible in the trades, the work destroys your body, and 50+ hour weeks are often expected. No thanks
The accounting profession is a white collar profession facing a shortage. Public accounting and financial accounting/reporting/analysis have had shortages especially for CPAs. Hours can be brutal but it pays the bills and can’t be replaced with AI anytime soon.
Why do you think ai cant replace them? Legit question
Accounting can be replaced with AI for sure. At the end of the day accounting is just a set of rules that get applied each time. Sure there will be some degree of judgement here and there, but posting a journal entry and pulling the trial balance into the Income statement or Balance sheet is not rocket science, a well trained AI can certainly do it
Shortage in CPAs is more because the business model of public accting firm (Big4 etc) relies so heavily on paying staffs poor salaries, forcing them to work long hours whilst the top of the bunch reaps all of the profit share rewards.
@@franco8flyline Accounting rules can be pretty complex and highly judgmental. Reading a contract for embedded derivatives and determining their value/accounting treatment without public data isn’t simple. Not every business simply posts journal entries without any thought going into its accounting/financial treatment.
@@karag4487 the short answer is accounting can be highly complex and regulatory barriers. The more complex accounting is involved, the more human judgment is needed.
As examples Accounting for leases, business combinations, VIEs, taxes, and derivatives is challenging for a lot of human accountants.
Accounting also varies by industry, there’s different tax/financial considerations from region to region and different regulatory requirements for publicly traded securities. If the accounting profession is capable of being replaced with AI now, the legal profession would be too. There’d also no longer be a need for CFOs and CEOs. Basically AI would replace any skilled office job.
It is about time that these companies cut at the top. Because the ones at the BOTTOM make the company money!
“Oh how the turntables have…” -Michael Gary Scott
This is essentially a massive systematic wage-cut.
Job security is a myth
It's called Google n Microsoft laying off 30,000 because of AI. We keep saying AI robots will take our jobs. Happening faster than I thought due to internet AI. Not physical robots. Look it up if you don't believe me.
Im just not understanding why corporate is being tied to “professional” …
Boomers should really do something about this. They need to pull themselves up by their bootstraps and contribute.
My greatest concern is how to recover from all these economic and global troubles and stay afloat especially with the political power tussle going on in US.
Inflation can have a significant impact on individuals and their cost of living. As a result, it can cause negative market sentiment. It is important for individuals and businesses to find ways to navigate and potentially mitigate the effects of inflation on their finances. The current economic climate, including underperformance of financial markets due to fear of inflation, has led to a decrease in the value of my portfolio. I would appreciate any recommendations on how to potentially increase returns during this market downturn.
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4:06 that guy has the right mentality. If I was an employer looking for someone I would immediately invite him to talk about the position.
Truth is most big companies suffer from overmanagement...
I know what's happened. Trump's wall finally succeeded in keeping immigrants out. Now all of the conservatives who wanted the wall realize we don't have enough workers.
Is this satire? Every since Biden took office, the illegal immigrants skyrocketed. Over 2millions alone last year.
Commoners in Ancient Rome occasionally exercised a social strategy called secessio plebis or secession of the plebs in which the entire working class would evacuate the city en masse and refuse to work or fight in the army, leaving the patrician class to fend for themselves, and that may be what we will ultimately see long term in retaliation to the effects to save the upper class at the expense of those who hold the system up.
A lot of people don’t really find the value in the direction of where we are going as a society, as innovators, and as architects of our futures. That’s really important to most people which legislators and those balancing the nations budget have a hard time understanding.
The scope of this topic goes as far as understanding that AI is already writing its own code and the only thing it requires is solving spatial and temporal autocorrelation then literally everyone will be laid off lol. Even the programmers.
WSJ apparently had to layoff their video editor because they couldn't sound correct the interview with the rest with the narrator.
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.
Let’s all just remember that WE control the enconomy…it’s not this ominous thing that operates itself. The decisions we make matter
This is like saying we control the ocean. We can sail it, but we don’t control it.
What happened is someone finally woke up, a good example is NY MTA they figured out that someone sitting in a cubical pulling $250K reading email has nothing to do with keeping the subway running so why would we fire the workers keeping the system running when we have non productive ppl sitting around draining the budget!
You should always be ready to jump ship nothing is secure ….
I'd like to see the data of those who got laid off. Was it because of the shrinking market in China or is it because of a merger that is removing dual jobs from the consolation of two factories or whatever
Making better videos on a topic with detailed background is going to get better response/respect imo
I think China will pick up speed again at some point.
Then there is populations increasing in many parts of the world which could pull for economic growth
Definitely it’s a wage problem.
They’re paying to much for these white collar jobs
@@fernandovazquez7272 Your post was automatically deleted by YT
Fernando Vazquez . 1 hour ago
Definitely it's a wage problem
Theyre paying to much for these white
collar jobs
I would like to know why you didn't get allowed to post?! Because of the content?!
It could be that if it is alot of older and/or experienced workers getting laid off. And, at the same time companies are currently hiring new graduates for tech positions.
I had 2 yrs at my last job. I was told at an interview that they are only considering new graduates, not people with experience, for a particular software position I saw.
Tech companies bet big on people wanting to spend the rest of their lives inside their homes, how incredibly disconnected from anything that is truly human. It's unfortunate people are losing their jobs, but I'm glad projects like Facebooks metaverse won't succeed at least in the near future. I'm glad people actually went the complete opposite way by avoiding social media, threatening what i would've considered a very bleak future.
Meta is failing due to factors that have nothing to do with what your talking about
Social Media is not all tech. All sectors rely on Tech. Also Social media platforms as a whole are bigger than ever and what we are seeing now has happened before. There will be a new shuffling of the ecosystem, new companies will rise on the graves of some of these companies as they falter.
This IS A Depression!!! And you say as people retire...some of us are being forced to retire!!!
"How about you; you hiring?" That's my kind of entrepreneur!
😆😂 right
We just have to make all of those highly paid white collar and tech worker employees into low paying service sector jobs. That would take care of the labor imbalance. Of course we don't need to pay those service sector employees a little more. That would be capitalistic.
I think we are seeing an absolute economic meltdown, its going to be a rough ride for the next ten years.
Me yelling: pay people more into the screen 😵💫😵💫😵💫😵
but you forgot one thing, big company cannot provide same grow, thats why they laid off people and cut cost for temporary win, but they do after that?
Took me 3 months to get another career. Perfect timing