One survey indicates that the hiring rate at many companies is slowing, but only by a little.
Key details
CFOs are not optimistic about hiring over the next year. According to a recent Deloitte survey, CFOs are anticipating a 2.6% hiring increase this year. Hiring growth was at 5.3% just three months ago.
The survey included responses from 112 CFOs. Though the hiring growth is significantly lower than just a few months ago, the 2.6% is still higher than the same time in 2019.
Deloitte’s survey also found that CFOs were more concerned about inflation than a potential recession.
Why it’s news
The impending hiring freezes could spell potential difficulties ahead for those looking for jobs in the coming year.
Major companies like Microsoft, General Motors, and Meta have announced hiring freezes over the last year. Often, hiring freezes are put in place in an effort to avoid layoffs, but it can’t prevent them entirely.
It also is a sign of a slowing economy, which could lead to a cooling down of inflation. That in turn could lead to a faster turnaround for economic growth.
According to a PwC survey, technology, media, and telecom companies are planning layoffs over the next several months. Of the companies surveyed, most have already implemented hiring freezes in an effort to avoid layoffs.
The current job market is a confusing one, with unemployment claims dropping at the same time that more companies seem to be tightening their belts and preparing for more layoffs.
Though layoffs may be concerning, there is a possibility that the cooling job market could aid the Federal Reserve in creating a more stable economy, Axios reports.