COVID-19 had different impacts on different industries. For example, the technology sector experienced a boom thanks to the rise of stay-at-home orders. Companies like Zoom (ZM) and Peloton (PTON) saw their products become ubiquitous overnight. Comparatively, industries like hospitality, airlines, and food service were decimated as travel screeched to a halt.
This ripple effect is still playing out. Some companies are laying off thousands of workers, while others can’t seem to hire new employees quick enough.
Looking at Layoffs
Recent months have seen sweeping layoffs across the technology sector. Tech giants like Meta (META), Amazon (AMZN), Microsoft (MSFT), and many more have made significant reductions in headcount. These companies grew rapidly during the pandemic, and arguably overhired in an effort to meet demand. US employers cut almost 103,000 jobs in January 2023 alone.
While the cuts may look grim, employers also added a total of 517,000 jobs last month — nearly triple what experts expected — and sent the unemployment rate to a 53-year low.
A tight job market means you may be in a great position to negotiate a raise.
Asking for increased compensation is reliant on your position, your company, and how your role fits within the economy as a whole. But if your company is hiring rapidly for your role, you are likely in a strong position to ask for more pay. Or if other companies are hiring for roles you could fill, consider conducting a few interviews in order to leverage offers in your negotiations.
Meanwhile, if you were laid off recently, you may feel angry and ashamed. Acknowledge those feelings, and remind yourself that millions of others are navigating this situation. You are not alone. Also, taking action can foster feelings of control and personal agency. Updating your resume, networking, reworking your budget, and engaging in self-care rituals (like exercise) may also be positive steps.
Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.