Layoffs And Job Markets Update--August '23

Summary

• The Educational Services, Wholesale Trade, Real Estate, and Rental and Leasing sectors are witnessing a continued downtrend in job losses, nearing the levels observed in 2021. 
• Similarly, there's been a sharp decline in job losses in the Information, Retail Trade, Finance, and Insurance sectors, especially after a significant spike in Q1 2023. 
• Alarmingly, three sectors (NAICS 48-49, 55, and 56) have seen a 400% surge in layoff levels after a prolonged period of low activity over the past two years. 
• Geographically, over half of all states have reported an uptick in layoffs in the last three months.

The job losses across the Educational Services, Wholesale Trade, Real Estate, and Rental and Leasing sectors have continued their downward trend and are approaching levels seen in 2021:

Normalized number of early layoffs for Educational Services, Wholesale Trade, Real Estate, and Rental and Leasing sectors

(Source: Livesight Early Layoff Indicator Data)

The Information, Retail Trade, Finance, and Insurance sectors, after experiencing a 20X+ spike in Q1 2023, have shown a consistent decline in job losses. This trend is further solidified by stable job posting activities:

Normalized number of early layoffs for Information, Retail Trade, Finance and Insurance sectors

(Source: Livesight Early Layoff Indicator Data)

However, job losses in three specific sectors below have seen a 400% increase in layoff levels following a period of low activity over the past two years:

Normalized number of early layoffs for NAICS 48-49, 55, and 56

(Source: Livesight Early Layoff Indicator Data)

On the geographical front, a majority of states have been grappling with increased layoffs over the past three months.

Three-months layoff trend across states

(Source: Livesight Early Layoff Indicator Data)

Layoffs in Headlines

• Tyson Foods has filed WARN notices with the states of Indiana and MO, indicating a total of 2,564 layoffs.
• CVS Health plans to lay off 1,658 employees across Texas, NY, FL, and 5 other states.
• FedEx is laying off another 594 employees, according to WARN filings with the states of Texas, PA, and CO.

Other Notable Layoff Events

• T-Mobile has notified the state of WA about its plans to lay off 401 employees.
• Nestle USA has filed a WARN notice with the state of NJ, revealing plans to lay off 210 employees in mid-November.
• AT&T has filed 3 WARN notices with the state of New Jersey, revealing plans to lay off 50 employees over the next two months.

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