Oct 4, 2022 - Economy

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

Nathan Bomey

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."

Add Axios on Google

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

What to read next