An alarming 417,500 scheduled layoffs by American businesses have been reported for the first five months of 2023, in a Bloomberg study. According to an estimate by the outplacement firm Challenger, Gray & Christmas, there have been four times as many job layoffs than there were in 2023.
The overall number of predicted job cutbacks through May is the largest since 2009, with the exception of early 2020, when the government’s reaction to the Wuhan virus affected the labor market.
According to Challenger’s research, the IT sector, which declared 136,800 layoffs for the first five months of 2023, accounted for the majority of layoffs. That number was almost higher than the total number of job cutbacks disclosed by the IT sector in 2001, which totaled 168,400.
Similar job layoffs have also occurred in the finance, retail, and media industries. According to Challenger, 17,400 layoffs have already been reported by the media sector in 2023. Through May, financial businesses laid off 37,000 workers, more than four times the amount compared to 2022.
Companies have had to make expense reductions as a result of the Federal Reserve’s 14 months of interest rate rises. Challenger said that many businesses had frozen recruiting as a result of predictions of a perilous economic condition.
Broad-based job cuts will probably continue as Challenger data indicates a 287% increase in layoffs from the previous year.
The outplacement agency estimated that 3,900 jobs had been lost as a result of the spread of artificial intelligence. A considerable number of employment may be lost as a result of AI, a trend that is expected to intensify soon. According to Goldman’s findings, artificial intelligence will result in the loss of tens of millions of employees in the next years.
The foundation of the American economy is shaky. A massive regulatory state coupled with cheap credit guarantees that the American economy will always be unstable and will only fulfill the interests of oligarchical elites, while Middle America is continuing to be eroded.
Only true free-market changes, like eliminating the Fed and reducing the regulatory state, can bring back the US economy to normal.
Author: Scott Dowdy