Tech Layoffs and Recession Fears Slowing Job Mobility

The Great Resignation might be waning among knowledge workers. Enter: The Great Disengagement.

Two out of three professionals in the U.S. (66%) are not actively looking for another job, according to a new survey by the professional social network Blind. The digital media network Living Corporate commissioned the survey of nearly 7,000 verified professionals in the U.S.

“Employees feel stuck. They are growing less optimistic about their careers while simultaneously growing more anxious about the economy,” noted Living Corporate Founder and CEO Zach Nunn.

Professionals fear a recession might be imminent

Indeed, Blind and Living Corporate’s survey found that more than three out of four professionals (76%) are concerned about a possible recession.

Professionals in the financial services, financial technology and on-demand or “gig economy” industries were most pessimistic about the state of the economy. All or nearly every professional polled at Airbnb (90%), Coinbase (98%), Deloitte (87%), DocuSign (91%), Instacart (100%), Robinhood (100%), ServiceNow (91%), Stripe (94%), T-Mobile (90%), Twitter (94%) and Wayfair (92%) expressed concern.

And it’s no wonder why.

According to Blind’s tech layoffs tracker, more than 450 startups and technology companies have laid off more than 75,000 people in 2022, including more than 20,000 jobs cut in the last three weeks alone.

Recent news headlines of companies “freezing” or pausing hiring, rescinding job offers and laying off employees have not helped build confidence.

The majority of professionals surveyed (53%) by Blind and Living Corporate said they feel less confident about their job security now compared to one year ago. Only one in eleven professionals (9%) said they felt more confident about their job security.

Perhaps unsurprisingly, one’s economic outlook affected how secure they felt about their jobs.

Ninety percent of professionals who feared a recession was imminent said they felt less confident about their job security. However, 60% who were unconcerned about an upcoming recession said their confidence in their job security has not changed in the last year.

Employee engagement at a record-low

Nunn warns employee engagement will be a top organizational risk for employers in 2023 if current trends continue. He added: “The productivity gains businesses enjoyed during the work-from-home period caused by the pandemic are being challenged and becoming more volatile.”

The U.S. Bureau of Labor Statistics reported employee productivity dropped by 7.2% in the first quarter of 2022—the steepest decrease since 1947.

“If the economy slows at the pace many fear, organizations and employees could be caught in a stalemate, as both parties look to move on but are too pressured by the economic environment to do so,” concluded Nunn.

The bottom line

Professionals in the financial services and technology industries have long enjoyed solid pay and high job mobility. However, concerns about a recession have slowed the Great Resignation, according to a new analysis by Blind and Living Corporate. The vast majority of workers are pessimistic about the economy, which has affected their job security and willingness to actively search for a new role.

Methodology

Blind and Living Corporate conducted an online survey of 6,911 verified professionals in the U.S. on the professional social network Blind from June 20 to 21, 2022, to understand how professionals feel about recent layoffs in the technology industry.