Does Job Security Exist In 2023?

Does Job Security Exist In 2023? was originally published on Ivy Exec.

Some unprecedented events are happening right now.

In history, we have never seen so many massive layoffs in such a short period of time. We are all aware that we’re facing inflation and the market hasn’t been great, but firing thousands of people? Is that the solution?

Have these companies considered other options?


📊 Some Stats

According to TrueUp’s tech layoff tracker, there were 1,405 rounds of layoffs at tech companies globally through the first week of December 2022, affecting 219,959 people. Some of those companies are world-wide known global tech leaders such as Google, Meta, Tesla, Microsoft, Amazon, Twitter, Zoom, IBM, Dell, Spotify, and many more. 

And companies are announcing more layoffs in 2023. 

Resume Builder conducted research on 1,000 companies regarding their plans for 2023, and the results are shocking:

  • 61% of business leaders say their organizations will likely have layoffs in 2023
  • 57% of business leaders say layoffs are likely to estimate 30% or more of their workforce 
  • 70% of companies are likely to implement a hiring freeze in 2023

Some other very concerning trends: 

  • 1 in 4 companies has reduced current employees’ salaries
  • The most common action taken by 34% of organizations was reducing or eliminating bonuses
  • Companies also say they are reducing or eliminating holiday gifts and other benefits

According to Time, John Van Reenen, the Ronald Coase School Professor at the London School of Economics, said that the general economic situation is one of the key driving forces behind major layoffs. He mentioned that the war in Ukraine and most countries being in or entering into recession means that the demand is failing and companies are struggling.  


♻ Correlation ⇎ Causation

We are all aware of the recession and inflation that consumed our salaries. Many companies increased their rates or prices and also fired thousands of workers. Is that the only solution?

It seems rather inhumane, considering these are human beings who worked for the said company loyally for a number of years. On the other hand, companies are letting them go at the worst possible moment. 

All of a sudden, there are more than 200,000 thousand people in the job market, and companies are freezing their hiring processes. Now more than ever, we know that the phrase – Everyone is replaceable is true. 

When you have the possibility of being terminated at any moment, how can you remain motivated to do your job well? This is a very tricky situation. Creating such an environment has a detrimental effect on work motivation, loyalty, and performance. 

According to OECD, dismissed workers face income loss and unemployment spells, potentially culminating in further social issues and poor health. Mass layoffs may also have longer-term detrimental effects on local communities in terms of employment, well-being, and vitality. Policymakers face a balance between promoting economic dynamism with protecting workers from long-term unemployment and mitigating spillovers to local economies more generally.


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☑ Conclusion

While in the 80s and 90s, people could count on long-term employment and even retirement plans. Nowadays, everything is different. People change companies every couple of years, and companies change employees.

With the massive layoffs in 2022 and 2023, job security is non-existent. The only thing that we can do is prepare ourselves for what might happen. 


How to be prepared for the worst-case scenario?


While nothing can really prepare you mentally and emotionally, here are some tips on how to make this easier for yourself: 

  • You should have a good resume ready to go. Consider hiring a resume writer if necessary, but ensure it is top-notch. 
  • Ensure your LinkedIn profile is optimized and that you are active. You can increase your chances of getting noticed by posting content and engaging with other people’s posts. 
  • Start contacting people you have met throughout your career. Ensure that they remember you exist and recognize your greatness.
  • If you haven’t looked for a job in a while, you need to prepare yourself for some changes that are taking place. Read more about it here

Unpredictability in the job market and the unfair nature of the job market contribute to our feeling of unease. However, I want to encourage you to write down a list of your resources and remind yourself that you are a high-performing professional that can add value to a company. At this moment, it might be a bit more challenging to find a new opportunity, but you still need just one yes to get there. 

By Ivy Exec
Ivy Exec is your dedicated career development resource.