Amid Tech Layoffs, These Industries Are Likely To Remain Recession-Proof In 2024
The CEO of a technology company fired hundreds of employees via a phone call or Zoom call. The tech world, already facing upheavals in the last two years, is set to continue its challenges in 2024.
What's causing the tech layoffs in 2024? Here are some reasons that driving Ongoing Layoffs. We'll examine five key trends molding the job market this year and closely examine the industries demonstrating resilience amid economic hurdles.
The Cost-Cutting Dilemma
Spending too much money in 2023 is causing trouble for businesses in 2024. One big reason for this trouble is trying to reduce costs, and that's a major cause for companies letting go of employees. There are different reasons for wanting to cut costs, like not making enough money, facing business losses, or not being able to make things fast enough. It's also about making more money and keeping investors happy.
Artificial Intelligence (AI) Takeover
The rise of AI is becoming a significant contributor to layoffs. A survey by ResumeBuilder.com found that nearly 70% of employers are laying off workers to save money, and about 40% are doing it by bringing in AI.
As business leaders discuss whether AI is a good thing for job-seekers or if it's making job cuts more common, some companies are already using tools like ChatGPT and Bard to replace human jobs. For instance, a UK telecommunications firm British Telecom, plans to replace a fifth of its 55,000 job cuts with AI.
ALSO READ:?After Google & Microsoft, Dell Becomes Latest Tech Giant To Do Layoffs, Fires 6,000 Employees
Mergers And Buyouts Impacting Jobs
When two companies decide to join forces, it's called a merger. This means they become a new entity, combining their operations. On the flip side, a buyout occurs when one company is bought by another, making it part of the new owner's business through a change in ownership.
During these mergers or buyouts, companies often shake things up. They might change how jobs are organized, what skills they need, or even the names of departments. Unfortunately, this often leads to some employees losing their jobs as the company figures out how many people they still need.
Rise In Outsourcing
One big reason why people lose jobs is because companies choose to outsource work. It's like when you decide to ask someone from another place to do a job instead of hiring someone full-time. This is because having full-time employees can be too expensive for many companies.
So, what they do is send the work to other countries or areas where money is worth less. This way, big companies can save money, and they often hire agencies with workers who are paid less to get the job done. Unfortunately, this way of doing things often leads to job cuts for people in the original company.
Recession-Proof Industries That Stay Strong in 2024
Not every industry can avoid job cuts completely, but some have a better track record when times get tough. Let's take a simple look at these recession-resistant industries:
Healthcare:
The healthcare industry is driven by essential needs and often experiences steady growth regardless of economic conditions.
Areas like nursing, medical technology, and pharmaceuticals are likely to see continued demand.
Education:
Public and private education sectors typically see stable employment, as education remains a priority for many families.
There may even be an increased need for educators as online learning or smaller class sizes become more prevalent.
Government:
Government jobs generally offer stability and are less likely to be impacted by economic fluctuations.
Sectors like public safety, infrastructure, and social services will likely continue to see government investment.
Consumer Staples:
People still need necessities like food, beverages, and household goods during recessions.
Companies that produce and sell these staples are likely to see consistent demand.
Retail trade and food and accommodation are industries that offer a higher level of job security. The demand for essential items such as groceries and merchandise remains stable even during economic downturns. In the Indian retail market, the demand for essential items is projected to reach $1.1 trillion by 2027 and $2 trillion by 2032. Likewise, the hotel industry made a direct contribution of $40 billion to the GDP in India in 2022 and is expected to increase to $68 billion by 2027. It is anticipated that the hotel industry will surpass $1 trillion by 2047.??
Skilled Trades:
There's a growing demand for skilled workers in trades like electricians, plumbers, and carpenters.
These professions often require specialized training or apprenticeships, making them less susceptible to automation.
Cybersecurity:
With the ever-increasing reliance on technology, the need for cybersecurity professionals to protect systems and data from cyberattacks remains crucial.
This demand is expected to continue growing even in a recession.
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