Written by Bernie Carr
My nephew recently told me that his employer has been laying off staff and he was uncertain about his position. He was checking out job openings elsewhere to be proactive. Even though the job market is said to be strong at the moment, companies are quietly preparing for a recession.
The tech sector seems to be seeing the highest number of job cuts.
U.S. employers in the technology sector cut nearly nine times more jobs in May than in the first four months of the year as rising inflation and slowing demand force companies to cut corners.Source: Reuters
In recent weeks, companies such as Tesla, Meta/Facebook, Uber, Twitter, Netflix, and Amazon have all announced job cuts as well as hiring freezes. Banks and mortgage companies like JP Morgan Chase, are laying off hundreds of people. Real estate firms Compass and Redfin also announced job cuts. Crypto companies have also let go hundreds of people, along with the trading app Robinhood.
“We don’t know where the labor market is headed yet,” said Andrew Stettner, an unemployment expert and senior fellow at progressive think tank The Century Foundation. “But clearly many things are flashing warning signs.”Source: CNBC
How do you prepare for a job cut?
While you’re still employed, there are a few things you can do to get prepared.
- Cut your expenses now. Review all your monthly bills and see what you can lower or cut.
- Pay off debt, especially high interest credit cards. With the Feds raising interest rates, it is likely your credit card interest rates have risen as well.
- Update your resume, including profiles online such as LinkedIn or Indeed.
- Boost your emergency savings fund.
- Get all your medical, dental, and vision checkups done while you have health insurance. Fill prescriptions refills that are covered by your health plan.
- Start networking with colleagues in your industry or similar positions.
- Make yourself as valuable as possible in your current job.
These are just a few ideas to get you thinking. For more detailed steps, see How to Prepare for Job Loss.
I hope these job cuts do not affect you. But it’s always a good idea to prepare just in case.
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Bernie Carr is the founder of Apartment Prepper. She has written several books including the best-selling Prepper’s Pocket Guide, Jake and Miller’s Big Adventure, The Penny-Pinching Prepper and How to Prepare for Most Emergencies on a $50 a Month Budget. Bernie’s latest e-book, FRUGAL DIY has just been released on Amazon. Her work appears in sites such as the Allstate Blog and Clark.com, as well as print magazines such as Backwoods Survival Guide and Prepper Survival Guide. She has been featured in national publications such as Fox Business and Popular Mechanics. Learn more about Bernie here.