Operators of hotels, bars and restaurants, which were hit hard as the Covid-19 pandemic took hold, are now among the US’ fastest-growing employers, offsetting a slowdown in tech-related hiring, The Wall Street Journal said.
Because the hospitality industry includes a larger number of private-sector jobs than the tech and information sectors, the shift in hiring patterns has helped keep the US unemployment rate at a 53-year low and the overall job market tight, the Wall Street Journal said.
The cuts partially reverse some of the hiring made during the height of the pandemic, when lockdowns led to increased demand for tech products and services.
Payrolls grew faster at most companies in the S&P 500’s technology and consumer-discretionary sectors during the first two years of the pandemic than during the preceding two-year period, according to a Wall Street Journal analysis of FactSet data.
WSJ said factors such as a return to pre-pandemic consumer habits, rising interest rates and fears of an economic downturn have prompted some companies to recalibrate their head counts.
The Wall Street Journal said the tech layoffs might not be affecting the broader employment data for other reasons. Job-cut announcements don’t always shrink company workforces as much as promised. Business can improve, vacant jobs can go unfilled and layoffs can sometimes take months to execute.