Recession worries aren’t stopping CEOs from hiring, as the majority report plans to add more staff this year, despite numerous layoffs.
- Interest rates will likely rise this year, leaving many CEOs concerned about this year’s economy. Still, many plan to continue hiring.
- Around 68% of surveyed executives told software company Greenhouse during a survey that they plan to hire more employees this year.
- In January, the U.S. economy surpassed economists’ predictions and added 517,000 jobs. Unemployment dropped to 3.4%.
Why it’s news
Waves of tech layoffs that began last year and are continuing this year, left many worried about potential layoffs branching into other industries. Big Tech companies have released nearly 70,000 employees over the last year, Fortune reports.
Nearly every CEO is preparing for an economic downturn, an EY survey found. More than half of those surveyed said they were anticipating something “worse than the global financial crisis.” Even with these concerns, layoffs don’t appear to be the plan for most companies.
Only 11% of those who participated in the Greenhouse survey said they planned to cut back on staffing this year. Nearly one-third plan to increase their staff by 10% or more. Almost 20% are planning 30% or higher increases.
Another survey from the Conference Board found that retaining talent was a top priority for CEOs.
“While CEOs globally are looking to contain costs and reduce discretionary spending—actions typically taken during a slowdown—employees may be able to breathe a sigh of relief, as few executives are turning to layoffs. Instead, they plan to mitigate risk by accelerating innovation and digital transformation, pursuing new opportunities in higher-growth markets, and revising business models—the three most-cited actions,” says Conference Board chief economist Dana Peterson.