There has been a lot of shifting in the labor market since the COVID-19 pandemic.
After the pandemic, many companies almost reached a point of begging for employees to apply. Jobs were offering perks such as big sign-on bonuses, higher wages, extra holiday pay, and much more. These perks and demand for workers put the people in the high seat when it came to jobs.
Now it seems as though the labor market has shifted, giving companies the upper hand. In a new survey conducted by the Harris Poll for Bloomberg News, 58% of respondents said they believe companies have more leverage in the job market these days, an increase of five percentage points from January.
Why it’s news
Right now, we are uncertain about which way the economy will go. Inflation has been high and signs have pointed toward a looming recession.
Last month the labor market was red hot, with job growth beating all expectations. The U.S. added a robust 528,000 jobs in July, recouping the number of payrolls lost in the wake of the pandemic, according to the Bureau of Labor Statistics. The unemployment rate also dropped to 3.5%, a half-century low also seen just before the pandemic in early 2020.
These rallies within the labor market suggested a continued demand for labor, but within the last few weeks major businesses started cutting jobs. A new survey shows half of US companies are planning layoffs. Apple, Ford, Robinhood, and Peleton are some of the ones that have slashed their workforce.
Amid the high inflation rates and recession in everyone’s mind, workers are seeking remote work and raises, but due to the looming layoff spree they are scared to ask. In the Bloomberg poll, only 51% of respondents said they believed they could negotiate to work from home or in a hybrid setup without fear of repercussions.
The poll shows most employees feel they could move to another company to get better pay, but choose to stay at their current employer due to layoff fears.