The Economic Rollercoaster: Uphill Climb But Uneven Footing
Shally Steckerl
Global Talent Strategy & Recruiting Leader. Creator of The Sourcing Method. Solving the world’s most difficult Talent Acquistion challenges, providing pain relief for your recruitment agony.
The economy is like a wonky rollercoaster ride – exciting progress punctuated by sudden dips and turns. While key indicators paint a complex picture, let's buckle up and analyze the landscape to see if we can explain these recent layoffs.
Wage Growth: Whee! But Wait...
Wages have certainly climbed 3% since the pandemic, but hold your horses. This "yay!" turns into a "wait, what?" when we see median household income lagging behind pre-pandemic levels. Not everyone's on the same rocket car here.
Jobs Added, Jobs Lost: A Confusing Carousel
The job market's on an upswing, adding jobs for three years straight. January 2024 saw a whopping 353,000 new jobs, double what anyone expected! But hold on tight – we're still 3 million shy of pre-pandemic levels, and January also saw the highest layoffs in one month since the Great Recession (if you exclude Jan 2023). Talk about mixed signals!
Inflation: Taking a Breath, But Still Holding Us Down
Inflation cooled slightly in 2023, but don't celebrate just yet. Prices are still rising, and the complex relationship between producer prices and consumer prices hints at potential bumps ahead. Think of it as a rickety bridge we're cautiously crossing.
Stock Market: Sunshine and Rainbows (Maybe?)
Stocks are soaring to record highs, seemingly oblivious to the economic weather. Investors are feeling optimistic, but are they looking at the same ride map as everyone else? This disconnect raises questions about how well the stock market reflects reality.
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Growth? Yes, But Not for Everyone
The economy grew by 2.5% in 2023, fueled by spending and investment. But like the uneven distribution of wage gains, this growth doesn't guarantee smooth sailing for every worker. Some might be stuck in the slow-moving car while others zoom ahead.
The Automation Factor: Friend or Foe?
Generative AI and automation are speeding up, driving growth but also disrupting workforces. Imagine a new, faster track being built alongside the old one, leaving some cars behind. In uncertain times, companies prioritize cost-cutting, leading to layoffs even as the overall economy expands. It's a tough pill to swallow, but it helps explain the harsh reality.
So, Why Are People Losing Jobs?
It's a confluence of factors. The uneven and incomplete recovery, automation, and recession anxieties create a perfect storm for layoffs. Companies try to stay ahead of the curve, sometimes making tough choices that impact individual workers. The choices had to be made, even if they end up being wrong.
Remember, the rollercoaster isn't over. While the economy shows signs of progress, the ride remains bumpy. By understanding the complex interplay of indicators, we can better navigate the twists and turns, working towards a more inclusive and equitable recovery for all.
Sources:
Experienced Recruiter| Expert in Recruitment Tools & Advanced Sourcing Methods | Recognized for Hiring 300+ Full-Time Consultants | Expert in Strategic Sourcing & Relationship Building
9 个月I agree with you. Lot’s of false information about the economy. Probably because of an election year to boost numbers.
Global Talent Strategy & Recruiting Leader. Creator of The Sourcing Method. Solving the world’s most difficult Talent Acquistion challenges, providing pain relief for your recruitment agony.
9 个月Well this goes right along with what I wrote - new article by the Economist "How the world economy learned to love chaos " https://www.economist.com/finance-and-economics/2024/02/11/how-the-world-economy-learned-to-love-chaos
macOS Systems Engineer | macOS Endpoint Engineer | Jamf Pro Expert | Bash | Zsh | Python 3 | Empathetic customer support
9 个月Yeah it is for sure a roller coaster. Specifically in tech!
Senior Talent Acquisition Specialist | Human Capital Strategist
9 个月Thanks for sharing Shally! I was recently laid-off from a Senior Recruiter position and it was due to budget cuts, so this makes sense. I am looking for a Senior Recruiter role in Chicago, perm or contract. In office, remote or hybrid. Please share any roles you may come across. Kind regards, Anabel
A Self-Made Corporate Ronin who's with Interac as a ? Talent Advisor | Talent Scouring | Talent Business Partner | Digital & Virtual Networking | Digital Marketing & still providing lead gen & biz dev collaborations??
9 个月Thank you, Shally Steckerl, for highlighting the bumps we're facing ??. I can stress my appreciation of your insights in sourcing and the job market!