“Do you want to quit your job? Don’t do it now!” This is what is being recommended to thousands of people around the world this year and is a widely spread message, especially on social media. 2023 began with massive layoffs at Google, causing all the tech giant’s employees to worry about their future. Additionally, the growth in global employment is expected to slow down significantly this year, dropping to only 1% (from 2% in 2022) due to the effects of the war in Ukraine on the world economy, high inflation and tightening monetary policies, according to an International Labour Organization (ILO) report. How exactly will the job market be affected? Check out some opinions below.
Key Takeaways:
- At the beginning of 2023, Google announced the massive layoff of 12,000 employees, or about 6% of its workforce, becoming the latest tech company to cut staff as the industry’s economic boom suffered from the COVID-19 pandemic;
- Due to rising interest rates, inflation, and the persistent threat of a recession, many major corporations continue to implement layoffs;
- At the same time, the number of unemployed people in the world is expected to rise by 3 million in 2023 to 208 million;
- According to the ILO, the current global economic slowdown is likely to force more workers to accept lower quality, poorly paid jobs which lack job security and social protection.
DevelopmentAid: What can be expected in the job market in 2023? Which sectors will be the most affected?
“The economic crisis born of the war in Ukraine has had a negative impact on the world economy and led to the destruction of many jobs. The World Bank‘s global economic growth forecasts have been revised downwards from 3% in June 2022 to 1.7% in January 2023. The business areas likely to be most affected by layoffs could be food and transportation due to rising oil and liquefied natural gas (LNG) prices which are the main sources of energy in transport on the one hand, and the rise in the price of wheat, of which Ukraine is one of the main producers in the world, on the other. In developing countries, the informal sector, which acts as a shock absorber, could become denser by taking in the many workers made redundant from the formal sector, thus increasing underemployment. The main areas of activity that could welcome these laid-off workers are those where the barriers to entry are the lowest and which generate both quick and regular income. The trade-in miscellaneous items and food products that meet these two criteria is the area of activity likely to develop high underemployment.”
“It is rather difficult to accurately determine the number of unemployed people as some individuals are either under-employed, partially employed, or wrongly employed and sometimes in fields that are considered outrightly different from their field of training. Again, the COVID-19 pandemic dealt a devastating blow on the global labor market, yet the effect of the various interventions by governments, entrepreneurs, industrialists, corporate entities, and other stakeholders in the manufacturing/services sectors have not fully restored the pre-pandemic era status. Despite the robust interventionist policies and programs on the COVID-19 pandemic across the globe, the consequences for jobs and livelihoods are still very much with us. The pandemic had especially severe effects on the most economically vulnerable people, informally employed women and younger workers in the manufacturing and services sectors. The burden of the crisis has fallen unevenly across economic sectors: while the impact of the recession has been less serious for those able to work from home. However, workers who are employed in industries such as accommodation and food services, transportation, retail, and wholesale have been especially hard hit due to lockdowns, and the closure of industries and firms during the crisis. Millions of jobs were lost. Needless to say, just about six weeks into the year 2023, the fear of the effect of the pandemic on the global labor market is still huge. The year 2023 started with the news of Google firing thousands of its workers while others are in panicky job situations. According to the International Labour Organization, unemployment rates are projected to hit 4.5% and 6.4% for the U.S. and UK by the end of this year respectively. The Russian war in Ukraine, which has dragged on for about a year now, has again added to the grief in the global job market as many manufacturing companies that use agricultural raw materials such as food grains (wheat, rye, barley and oat), animals and vegetable fats, hides and skin products including some manufactured goods such as chemicals and allied products, mineral fuels, lubricants, among others, will have to look elsewhere. All this has serious implications for job markets. Unfortunately, however, the end to the war is not yet in sight. On the whole, the manufacturing sector is poised to face more serious challenges as a global recession is arising as exemplified by recurring public demonstrations on major streets in Moscow, (Russia), London (Britain), Paris (France), Brussel (Belgium) and a host of major cities all across Africa, Latin America, North America, Oceania and Asia. No doubt, the global gloom is knocking on the door, and this poses a great challenge to the masters of industries, government of nations, and corporate entities to ensure timely action and arrest the situation.”
“Unemployment is on the rise in most nations. However, most of this isn’t due to the Google and Microsoft of this world. Automation is an important contributing factor. As labor-intensive production shifts from the developed to the rest of nations, combined with their aging populations, unemployment figures will increase.”
See also: What are the economic predictions for 2023? | Expert’s Opinions
As international organizations and most experts predict, 2023 could be a tough year in finding employment opportunities. To land a good job these days, several approaches and tactics should be employed. In this respect, the DevelopmentAid platform, with more than 7,500 open positions in the international development sector, is an incredibly valuable asset to anyone searching for a job, and therefore becoming a Professional Plus member is crucial to stand out of the competition.
