Layoffs Amidst the Strong Economy: What Can be Done
Despite the enigmatic employment scheme, employment data and market references look positive with major stock indices closing off May at record highs and low unemployment rates. Yet, we still see layoffs continue in the technology sector and many other industries.
This Pacific Prime UK article will discuss the layoffs amidst the strong economy and key tips on what to do if you are affected.
Overview: Layoffs Amidst the Strong Economy
Already, as we made it through the first half of 2024, the employment scheme remains enigmatic with strong employment data and layoffs at the same time.
For instance, multiple employment data and market references look positive with all major stock indices closing off May at record highs yet unemployment rates remain at 4%, one of the longest streaks in seven decades in which unemployment is either 4% or less.
However, despite the strong economy, layoffs persist. Already in the technology sector this year, there were up to 60,000 job losses in over 250 companies. Job losses are also equally prevalent in other industries such as energy, manufacturing, or even government positions.
Back in 2022-2023, it was understandable that layoffs are attributed to overhiring connected to the COVID-19 pandemic. However, as we have since put that chapter behind us now, many are left wondering why layoffs still persist and what they can do should they get affected themselves.
The main reason for the employment paradox of simultaneous job growth and layoffs is incredibly complex, and those affected can find it daunting to navigate, which brings us to our next point.
Understanding the Factors that Contribute to Layoffs
Now that you know what’s going on in the overall employment scheme and the persistent layoffs amidst the otherwise strong economy, let’s now move onto the factors that could contribute to layoffs, all of which are beyond your control.
These factors include structural reorganization, economic uncertainty, and more. Below are the key factors that contribute to layoffs.
Structural Reorganization and Market Factors
Many companies undergo structural reorganizations, often due to investors and other market forces in an effort to cut costs and improve efficiency. Interest rates remain high, making new investments quite expensive, which reduces growth options and opportunities.
This puts companies in a position where options for boosting shareholder value are limited, which results in more investors scrutinizing companies’ bottom lines, asking them to find solutions through cost-cutting in hopes of boosting earnings.
Technological Advancements
The rapid technological advancements, especially in AI and automation, left multiple jobs built on repetitive, routine computer tasks such as manufacturing, transportation, customer service, retail, legal services, marketing, and healthcare at risk of technological replacement.
These transitions happen at such an accelerated rate to the point it’s difficult to retain and reskill efforts to keep pace.
Economic Uncertainty
Economic uncertainty, due to factors such as geopolitical tensions, fluctuating commodity prices, and associated supply-chain disruptions, constantly impact business decisions. Thus, companies usually respond to such uncertainties by reducing their workforce to mitigate potential risks.
If You’re Affected: How to Handle Layoffs
Now that you know the potential factors that contribute to layoffs, let’s now move onto how to handle them. Whether you’re affected yourself or not, taking these methods into consideration will help you should that day ever come.
Networking
Networking is one of the best ways to find new employment opportunities should you ever be affected by an unforeseen layoff. You can start by reaching out to former colleagues, industry contacts, friends, or family members to ask for job recommendations. You can also check online on job-searching sites such as Linkedin to keep up with available job listings.
Update Your Resume
Since you’re already using online job-searching sites like Linkedin, it’s also a good idea to go the extra mile by updating your resume. This is because your resume, along with your Linkedin profile, are your first impressions with potential employers. Make sure your resume is updated with emphasis on your recent achievements and relevant skills.
Also, tailor your resume for each job application and emphasize your experience and qualifications that align with the job description.
Complete Your Linkedin Profile
Having a strong online presence is crucial, as potential employers often search for candidates online. Thus, make sure that your Linkedin profile is complete with all relevant information. For example, if you are working in a creative field, you might want to create a portfolio consisting of notable past works from your previous jobs to show your experience.
Continuously Learn
Because the job market is constantly evolving, staying competitive requires continuous skill development and learning. Identify what skills are high on demand in the industry you wish to work for and then seek out opportunities to acquire or develop those skills.
You can take online courses or seek out part-time or freelance jobs in the meantime while waiting for any employers to get back to you.
Conclusion
Layoffs, while they can be attributed to various factors beyond control such as structural reorganization or economic uncertainty and market factors, can actually be dealt with by those affected. By updating your resume and emphasizing relevant skills or experiences, you can easily find a new job in no time.
While layoffs can happen to any employee at any time due to various factors, employers can always ensure employee retention with the right employee benefits solution. Having the right employee benefits solution can enhance employee satisfaction by ensuring their voices are heard, and we’re here to help.
As an experienced international health insurance broker and employee benefits specialist, Pacific Prime UK can not only help match both expats and locals to their health insurance plan of choice, but also offer efficient employee benefits solutions to ensure employees’ voices are heard.
He graduated with a Bachelor’s Degree in Communication Arts, Media & Communication major (concentration: Creative Content) from Mahidol University International College (MUIC). During the compulsory major elective period in the summer of 2021 and voluntarily during the summer of 2022, he also interned as a video and photo editor at Mbrella Films.
He has experience working as an English Content Writer at a real estate buying/renting/selling platform in Thonglor. There, he crafted company blog posts on a multitude of topics. Topics include market trends, legal issues and disputes in property businesses, financial guides, expat guides, home insurance, home decoration and maintenance, and weekly real estate news quick-recaps. Occasionally, as part of the blog-writing process, he would also translate existing Thai blogs to English.
In his free time, Guy enjoys doing scriptwriting and storytelling for comic strips, watching movies, and listening to music (particularly film scores).
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