Employment during and after the COVID-19 Pandemic has been strange. New survey data predicts that the workforce is in for another shakeup. The data, from Employment BOOST, indicates that less experienced workers were most likely to have leveraged the Great Resignation to get higher wages. However, it’s these same workers who are most concerned about impending layoffs, too.
Signs of change
BOOST is a professional resume writing, career coaching, and outplacement services firm co-headquartered in Chicago, Illinois and Detroit, Michigan. The data the company has gathered also shows 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 for less experienced workers. This happens as companies begin layoffs in the face of an uncertain economy. It’s a trend that has clearly started according to the 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.”
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For many companies, it’s common practice to let workers who are less tenured and newer at the company go first. Instead of laying off the worker who has been around longer.
“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,” says Dennis Theodorou, Managing Director at JMJ Phillip Executive Search.
“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.”