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Layoffs continue across tech sector following November jobs report

Layoffs are still sweeping through the tech sector but haven't spread to the rest of the economy yet.

Video transcript

SEANA SMITH: Let's talk a little bit more about the layoffs that we have seen so far, specifically within that tech sector. Taking a look at some of the largest companies, Meta to Amazon, Twitter, Salesforce, all up on your screen right now, announcing thousands of job cuts in recent weeks. We talked about the fact that the IT information industry adding 19,000 jobs, though, last month.

Dave, ZipRecruiter was out with some interesting tidbits here just in terms of job postings, the trends that they're seeing. Tech job postings down 36%. Science and legal job postings off just about 30% as well, although we're not really seeing the layoffs, like Betsy was saying, yet in some of the other industries. So it's hard to make sense of exactly what's going on here.

DAVE BRIGGS: Well, it is counter the other trend, which an Oxford economist points out, that you're seeing companies hoard less skilled workers. So it is certainly not what we're seeing of the other end of the economic bracket. And I think it largely-- you saw that screen we put up in terms of the tech layoffs.

Most of those companies dramatically ramped up hiring during the pandemic. Many of those doubled their workforce over that couple of year period to deal with the rising demand during COVID. So it's a natural coming down from that mountain because we're seeing, obviously, the economy changed dramatically, yeah. But we haven't quite seen-- it's a trickle, really. It's not a steady stream. It's not even a river, by any means, yet.

SEANA SMITH: Certainly, and so different than what we've seen from past recession, just in terms of the layoffs and the magnitude that we have yet to see in a lot of these white collar jobs. And when we take a look at the number of job openings still in the economy, there's over 10 million job openings out there right now, far outpacing the number of available workers.

And when you compare what's going on with the white collar world, at least in the tech industry, and comparing that to the frontline workers, when so many companies are still having a tough time addressing the labor shortage, it's going to be interesting to see whether the people that are unemployed, if they're going to be trading down in terms of salary, how quickly they're going to re-enter the workforce. There's a lot of unknowns.

DAVE BRIGGS: Well, Betsy actually, in the Wall Street Journal, was quoted on exactly those two phenomenons. And she said these workers should find jobs fairly quickly and fairly easily. But they will, indeed, have to trade down in terms of salary. So that is looking to be an impact. And it's called the Patagonia vest recession, said a professor and podcast host, Scott Galloway.

SEANA SMITH: I saw that.

DAVE BRIGGS: Not to make light of it, but it gives you an apt description.

SEANA SMITH: And idea of at least who has been, unfortunately, facing layoffs over the last several weeks. All right--