Will it be help wanted or pink slips? Layoffs could be a big part of 2023's economic outlook
Floridians can expect to see some changes in the job market heading into 2023.
About 21% of Florida executives are in the process of or have already conducted layoffs, according to recent polling of over 500 C-level and senior executives from digital consulting firm West Monroe.
The survey found many executives in Florida are planning staff reductions going into 2023, with an additional 26% of executives considering layoffs and just 53% reporting layoffs will not be considered in the next six months.
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Job cuts are hitting the tech sector especially hard with Meta laying off 13% of its staff, and other popular companies including Twitter and Shopify also announced cuts.
In Florida, most respondents who said layoffs were on the table were in the finance, tech, software, insurance and real estate industries.
Fifty-eight percent of Florida respondents said the biggest challenges facing them in the next 12 months would be inflation and prices, followed by the economy and labor and employee issues at second and third, respectively.
Jacksonville-area job market
Ron Whittington, spokesperson for CareerSource Northeast Florida, said any fluctuations in employment numbers are expected to average out to steady growth over the next few years.
“We’re seeing growth in all categories,” he said. “Over time, we see a drop here and there, but our region is in a great situation because we’re so diversified.”
Unemployment numbers held steady at 2.5% for the most recently recorded two months in the Jacksonville Metropolitan Statistical Area, according to the Florida Department of Economic Opportunity, while Florida’s average numbers had a slight uptick from 2.6% in September to 2.7% in October. The U.S. unemployment rate also saw a 0.1% uptick to 3.4%.
Unemployment rates remain far lower than those seen in previous recessions, for example, when U.S. unemployment numbers hovered around 10% during the Great Recession and at about 15% when the COVID-19 pandemic began.
And some companies announcing layoffs seem to be targeting some areas, such as senior or executive positions, while continuing to backfill certain roles.
Amazon, for example, implemented a hiring freeze in its corporate workforce but is still hiring warehouse workers for the holiday rush.
Although there are signs that the economy may be weakening, the labor market remains strong, especially in Florida.
As of a Dec. 6 report from CareerSource Northeast Florida, forecast job growth is still positive in all industry sectors from May 2022 through May 2024, meaning there are still thousands of jobs available in the area.
Each industry is expected to grow annually from 0.7% to 3.3% for an average of about 1.8% over the next two years.
“We're still receiving some 2,000 to 3,000 job requests from our partner employers each month,” Whittington said.
This means the labor market is still favorable for workers, even if it weakens slightly. While people seeking new employment — either as a result of layoffs or out of a desire to change jobs — won’t see as many potential employers offering bonuses and extra perks in 2023, mass layoffs seem to be an unlikely possibility.
Whittington said Jacksonville has “a spread of different industries” that help Northeast Florida’s employment numbers stay steady versus some other areas which may be hit harder by layoffs in a specific industry.
Those who are laid off have options for next moves and free resources through CareerSource, he added. First steps with this change in employment status include registering with Employ Florida and setting a meeting either virtual or in-person with a career counselor. From there, the center can provide resume assistance, offer interview coaching and even grant money for training or connect job seekers to apprenticeship programs.
This article originally appeared on Florida Times-Union: Layoffs expected to hit Floridians across job industries in 2023
