The pandemic triggered massive changes in the job market. While tech and information industries saw a spike in demand, companies went on a hiring frenzy as the hospitality and food space cut back on jobs amid lockdown. Now, the tables have turned.
As the world emerged from the pandemic, hospitality began rebuilding its workforce and outpaced all other industries for the first half of 2022 and has now become the leading employer in the U.S. as of January 2023. Meanwhile, jobs in the tech and information world declined, according to data from The Wall Street Journal.
“The sectors that are seeing above-average layoffs are those that saw explosive head-count growth after the pandemic,” ZipRecruiter chief economist Julia Pollak told the outlet.
In essence, the widespread layoffs in tech are in part due to the widespread hiring that happened in 2020. Although the layoffs and hiring freezes might ignite panic, the shift signals that the job market for tech is actually restoring to pre-pandemic levels.
Tech giants like Amazon, Meta, Microsoft and Google have all trimmed their workforces over the past year as demand wanes and economic conditions remain uncertain. Conversely, the hospitality industry, including bars and restaurants, has bounced back and become the fastest-growing employer in the U.S.
A close second is the healthcare industry, which also saw a major hit during the pandemic. In January alone, hospitality and healthcare added 207,000 workers, making up nearly half of the month’s private sector growth of employment, according to The Wall Street Journal data.
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