KEY INSIGHTS
1. Our data indicates a correlation between the age group of workers (25-34) that benefitted the most across wages over the last 12 months is also the age group most concerned about layoffs at their respective companies in the next 6 months.
2. Our data also indicates a correlation between the age group of workers (25-34) that benefitted the most across wages over the last 12 months is also the age group that was most likely to have changed jobs over the last 12 months – setting up a potentially concerning last-in-first-out (LIFO) dynamic as companies begin layoffs in the face of an uncertain economy.
3. Newer professionals (25-34) are also the cohort who are most likely to known someone who has suffered a layoff over the last 12 months, too.
4. Employment BOOST Outplacement sales velocity is up over 100% in the last 45 days, indicating that companies are laying off workers at a higher pace than is being covered in the media and providing job assistance services too.
TROY, Michigan – August 30, 2022 – New survey data from Employment BOOST, a leading professional resume writing, career coaching, and outplacement services firm co-headquartered in Chicago, Illinois and Detroit, Michigan, indicates that while less experienced workers were most likely to have leveraged the Great Resignation to obtain higher wages, these same workers are the ones who are most concerned about impending layoffs, too.
Additionally, the new survey data also indicates a correlation between the age group of workers (25-34) that benefitted the most across wages over the last 12 months is also the age group that was most likely to have changed jobs over the last 12 months. This indicates a potentially concerning last-in-first-out (LIFO) dynamic to less experienced workers as companies begin layoffs in the face of an uncertain economy – a trend that has clearly started, as evidenced by demand for outplacement services at Employment BOOST.
“There is clearly a lag between what is being reported in the news and what is happening within the workforce at the moment,” says Ryan Miller, Director of Client Success at Employment BOOST. “We’re seeing companies across nearly all industries reach out needing support for their employees facing upcoming layoffs and workforce reductions. Our sales velocity at Employment BOOST Outplacement is up significantly – over 100% in the last 45 days.”
“It’s clear in our work with companies conducting layoffs that there is a tendency to let workers who are less tenured and newer at the company go first, rather than laying off the worker who has been around longer,” says Miller. “We’re starting to see the effects of so much movement at the worker level play out with which workers are being laid off first, unfortunately.”
“The natural management decision, especially when we consider how much hiring has gone on over the last few years, is to reward loyalty and cut workers who are newer into the company when cuts have to be made,” says Dennis Theodorou, Managing Director at JMJ Phillip Executive Search, a boutique executive search firm specializing in manufacturing, supply chain, and technology. “It’s all about timing and value at the end of the day. Unfortunately, if you took a job in the last 12 months you may be one of the first to get furloughed. If you hopped around for pay raises over the last two years, you may also end up on the list if the company feels you’re overpaid, especially during a downturn. Unfortunately, this is the reality of what happens when you’re on the edge of a recession.”
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ABOUT EMPLOYMENT BOOST
Employment BOOST is a full-service resume writing, corporate outplacement, and career services company. With offices across the US and a staff constructed of Certified Professional Resume Writers, Certified Professional Career Coaches, Certified Diversity & Inclusion Recruiters, Executive Search Consultants, and SHRM-CP, Employment BOOST is uniquely positioned to provide best-in-class guidance and consultation to professionals looking to advance in their careers.