Oct 4, 2022 - Economy

KPMG CEO: Survey indicates coming layoffs, but some industries will be hit harder than others

The car for a recruiter from the Gap sits in an empty parking lot during a job fair in Leesburg, Virginia. Photo: ANDREW CABALLERO-REYNOLDS/AFP via Getty Images

CEOs are beginning to dust off their supply of pink slips after several years of nearly nonstop hiring, save for a few months early in the pandemic.

  • With about 9 in 10 expecting a recession in the next year, 51% are considering workforce reductions over the next six months, according to a new survey of 400 U.S. CEOs by consultancy KPMG.

Why it matters: Signs are adding up that the job market is cooling off — at least in certain pockets of the economy.

  • Job openings plummeted by more than 1 million from July to August, the Bureau of Labor Statistics reported Tuesday.

State of play: Areas where it seemed like the good times would never end — think the mortgage industry and tech — are likely to be hardest hit, KPMG CEO Paul Knopp tells Axios.

  • Layoffs in finance and insurance nearly doubled from 12,000 in July to 23,000 in August, the Bureau of Labor Statistics reported Tuesday.

Yes, but: The overall job market is not likely to fall off a cliff, Knopp says, as labor shortages continue to plague certain industries.

  • Layoffs are likely to be "more of a sector driven story," he says, adding that he sees "a period of even 3 to 5 years of pretty strong employment."
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